Social security provides an important source of funding for tens of millions of Americans and many others expect to rely on their monthly Social Security benefits when they retire. With the program facing financial challenges, Social Security has become a key issue in the 2020 presidential campaign. Both President Donald Trump and former Vice President Joe Biden are Statement in favor of Social Security, but the two candidates have very different opinions about what to do with the program.
In particular, Biden’s master plan includes several provisions that will boost Social Security benefits in many cases, but it will come at the cost of additional taxes. Meanwhile, Trump did not see Social Security as an issue in 2020, but some of what he did and suggested as president indicated what he might want to do with the chapter. submit.
Trump’s Social Security Foundation: Fill the void
For the most part, President Trump has not given a concrete background on how he intends to handle Social Security and its financial challenges. Currently, his campaign website does not include Social Security issue summary information.
However, actions were louder than words, and Trump’s moves from the Oval Office caught the attention. The White House budget proposals have repeatedly aimed at reducing Social Security spending, citing “inefficiencies” in the program that could provide cost savings if addressed. One particularly controversial proposal earlier this year involved the addition of a disability assessment to the Social Security disability insurance program. The new rule will require recipients to provide additional information supporting their ongoing claims for benefits on a biennial basis. Opponents argue that the rule will result in millions of Americans losing their rights despite having the right to accept them.
In addition, Trump has repeatedly called for a payroll tax cut in response to the COVID-19 crisis. However, he did not speak up about ensuring that the general budget would be returned to the Social Security Trust Fund due to the loss of revenue from the pay tax vacation. Without that support, Social Security would soon fall into financial trouble.
Biden Social Security Foundation: Higher benefits, higher taxes
Former Vice President Biden will take a different approach to Social Security. Instead of addressing the budget shortfall by looking to cut benefits, Biden will expand Social Security and substantially tax it to pay for those additional benefits.
Americans pay Social Security payroll taxes on their first $ 137,700 paycheck for 2020. However, taxpayers with higher incomes stop paying additional pay taxes upon their earnings. beyond that threshold. That is because additional benefits are no longer accrued above those income thresholds. The Biden plan will claim a 12.4% payroll tax credit to Social Security for income above a certain level, with similar proposals proposing $ 250,000 as a reasonable threshold. Opponents argue that the move will fundamentally change the purpose of the Social Security Administration, turning what was once a retirement income generating tool into a means of redistributing wealth.
With this extra money, Biden will look for Social Security benefits. In addition to addressing the sustainability of existing subsidy payments, the tax increase will provide additional benefits for people retired for 20 years or more. It will ensure higher minimum benefits for low-income workers, and extend higher payments to a surviving spouse after their spouse dies. Biden will also remove certain provisions that reduce Social Security benefits for families with a history of government income that is not taxed on wages.
One line in the sand
The difference in the views Trump and Biden have made on Social Security is as broad as the split between their two parties. With so much disagreement, most people with a Social Security opinion will easily choose a favorite candidate. Unfortunately, the large gap between the two positions also suggests it is unlikely that lawmakers on Capitol Hill could draft legislation that will actually pass Congress to put it on the presidential desk – regardless of the total Who is that system.