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rsbs
Veteran Advisor

Trump suspends SS tax payments, extends Unemployment

Trump hints at a permanent end to payroll taxes....makes me wonder how the funding for SS would be addressed, and the future of the SS system. I guess everyone realizes that the system is in trouble, the high rates needed to kick the can down the road are probably not sustainable, and seniors trips to Spain and Brazil may be curtailed.

Interesting times we live in. Those menonites and amish electing out of the SS system look kind of bright right now.

16 Replies
sdholloway56
Senior Advisor

Re: Trump suspends SS tax payments, extends Unemployment

I think there's one of those secret hand written codicils to the 2nd Amendment that may prove nettlesome.

 

 

rsbs
Veteran Advisor

Re: Trump suspends SS tax payments, extends Unemployment

But face the reality...there is not an actual "ss trust fund" to pay out promised benefits....guys like you that paid in a few hundred dollars a year during your working salad years are now asking young people to pay three to four thousand or more, self employed to cough up 12 to 15 grand in basic transfer payments......Trump probably is feeling the pulse on something here.

You , as an experienced oil, precious metals, currency, etc trader probably make 20 times as much trading each year as your measly ss check , right?

If you have a couple of kids paying in right now, lets say they are paying ten grand each...they could simply pay you the 20 grand and skip the middle man. 

Sometimes the solutions are ridiculously simple.

sam1wiseone
Senior Contributor

Re: Trump suspends SS tax payments, extends Unemployment


@rsbs wrote:

Trump hints at a permanent end to payroll taxes....makes me wonder how the funding for SS would be addressed, and the future of the SS system. I guess everyone realizes that the system is in trouble, the high rates needed to kick the can down the road are probably not sustainable, and seniors trips to Spain and Brazil may be curtailed.

Interesting times we live in. Those menonites and amish electing out of the SS system look kind of bright right now.


I believe its not what is taken out for ss and medicare, but the income tax portion that will no longer be deducted, till dec31st.  Most people will want to hold onto that money though cause at this point you'll still have to pay the tax.

Trumps gambit is that congress will need to go along or a bunch of people will be very irritated come April 15.

r3020
Senior Advisor

Re: Trump suspends SS tax payments, extends Unemployment

Trump has the progressives in the position of where they have to take the covid help from the American workers. Like all of these years where the dems said the repubs were making granny eat dog food.

cmilligan1958g
Senior Contributor

Re: Trump suspends SS tax payments, extends Unemployment

I think that Trump just check-mated the Dems into a guaranteed reelection. With the acceptance of DACA as an executive order/law, the left is painted into a corner. 

rsbs
Veteran Advisor

Re: Trump suspends SS tax payments, extends Unemployment

Sam, Bloomberg news interpreted the same as I did:

Trump’s Payroll Tax Deferral Raises Red Flags on Social Security

 Trump announced four executive actions on Saturday, including a temporary payroll tax deferral for some workers and continued expanded unemployment benefits, as the coronavirus pandemic continues to hobble the U.S. economy.

The moves were criticized by Democrats and some Republicans as, variously, proving little real help, an unconstitutional power grab from Congress, and a backhanded way to defund Social Security and Medicare, critical programs for millions of American retirees.

“Unilaterally eliminating the payroll tax and ignoring Congress’s power of the purse on funding unemployment insurance will do nothing to help Americans recover,” Representative Maxine Waters, chair of the House Financial Services Committee, said in a statement.

 

Trump’s actions could imperil negotiations with congressional Democrats over an additional coronavirus relief package, with the two sides trillions of dollars apart on key issues. The president, though, said he’d continue to negotiate with Democrats.

The “meager” policy announcements were “unworkable, weak and narrow,” and by pushing off payroll taxes for some, “endanger seniors’ Social Security and Medicare,” House Speaker Nancy Pelosi and Senate Democratic Leader Chuck Schumer said in a joint statement.

Tax Deferrals

Trump said his action authorizes the U.S. Treasury to allow companies to defer -- not suspend -- payroll taxes for Americans making less than $100,000 a year from Sept. 1 through Dec. 31. He said if he’s re-elected in November, he may extend the deferral and terminate the tax for some workers.

”This fake tax cut would also be a big shock to workers who thought they were getting a tax cut when it was only a delay,” Senator Ron Wyden, the ranking Democrat on the Senate Finance Committee, said in a statement. “These workers would be hit with much bigger payments down the road.”

Representative Richard Neal of Massachusetts, chairman of the House Ways and Means Committee, said Trump was focused on undermining retired Americans’ financial security.

“This decree is a poorly disguised first step in an effort to fully dismantle these vital programs by executive fiat,” Neal said in a statement.

The president said another move would provide $400 a week in jobless benefits -- down from $600 weekly that had been provided through last week, authorized by a Congressional stimulus bill in March -- and that states would be responsible for covering 25% of that cost.

The administration is directing states to use part of the $150 billion Coronavirus Relief Fund, while the federal government will tap on $44 billion of the existing $70 billion Disaster Relief Fund, said Andrew Husby, an economist for Bloomberg Economics.

“Because the Trump plan taps a limited pool of existing funds to extend unemployment benefits at $400 per week, there is a high risk they run short ahead of the election,” Husby said.

Neal said the plan was cumbersome: “What the President outlines is likely legally and logistically impossible to execute in nearly every state, not to mention that the proposed funding falls far short of what would be required.’

To act on his own, the president is relying on an expansive and controversial reading of executive power that likely will face legal challenges. Trump’s advisers say executive action could pressure Democrats to reduce their demands and allow him to argue to voters that he’s looking out for their well-being amid congressional inaction.

Republican Senator Ben Sasse of Nebraska said of Trump’s actions, “the pen-and-phone theory of executive lawmaking is unconstitutional slop,” adding that the president “does not have the power to unilaterally rewrite the payroll tax law.”

Even Senator Lindsey Graham, a close Trump ally, said in a tweet that he “would much prefer a congressional agreement.”

Alienating Democrats

But the gambit risks alienating Democratic lawmakers and decreasing the odds for a deal that both sides say is necessary to help the economy recover from a pandemic that’s decimated industries and left nearly 160,000 Americans dead so far.

“Unable to deliver for the American people in a time of crisis, Donald Trump offered a series of half-baked measures today,” Democratic nominee Joe Biden said in a statement. “He is laying out his roadmap to cutting Social Security.”

gh2002gh
Senior Contributor

Re: Trump suspends SS tax payments, extends Unemployment

I don't think you can look at pieces of the financial situation of where our nation is at, and where it's going and see how it will all work out for the better.  You have to look at the full picture.  

 

And I don't think the full picture is visible yet.  

 

But start with the creation of the federal reserve and the institution of individual income tax.   Federal reserve is just globalist banksters siphoning off a percentage of the nations wealth each year.  

 

It's unconstitutional.  There is no reason we should be paying interest on fiat money that was created from nothing.  There are no real assets backing the federal reserves "loans", but they cost American workers and companies things of real value.  How much of your labor (which had real value) have you performed that went to pay for this fiat interest?  If you don't pay, what does the court system seize?   Monopoly money you created with no assets backing it, or do they seize your real assets? Quite the racket they've had.  

It's a constant outflow of wealth from our country.  

 

If we stand behind our currency, we don't need a globalist oriented, privately owned central banking system that is leaching off of our country.  Congress can/should mint money, it's in the Constitution.  And the money should be either real money, or backed by real money (gold, silver, etc).  I highly suspect we will see the end of federal reserve notes and will go back to notes issued by the US treasury.  More on precious metals being real money, look at the Basel 3 rule changes.  This started the trend of gold buying by nations.  

But even if the Fed was left in name, changes have been made and the Federal reserve was in essence neutered earlier this year, and placed under the control of the Treasury.  Which is why the  China virus did not implode our economy more than it has.

And this also plays a role in the maneuvers we will make to put us back on solid footing.  

We never should have been paying personal income tax.  We didn't until the creation of the Fed.  The money that flows to Congress is just one big slush fund.  The banksters get their share, and then trillions flow into corrupt organizations, trade deals with dollars siphoned off everywhere. 

When the federal government and it's budget are whittled back to constitutional actions, business taxes and tariffs will pay the bills.  Tariffs are important, which is why there was so much hysteria.  I believe it was President McKinley that was known as the Tariff President, and he righted our economic ship.  We had great wealth under his leadership, but of course the globalists destroyed it.

When our currency is backed by real money, Congress will be forced to act within it's means.  

 

I don't know what will happen with SS, but I fully know that those that have paid their dues will be taken care of.   I hope to see the program ended for future generations.  

I'd much rather have had the opportunity to use that money as I saw fit/invested vs the government holding it until an age I may or may not live to see.  And the return is horrid and not equal to what is paid in.

 

I believe we'll see the payroll taxes ended long term after the Congress is seated.   Putting more money in the pockets of our workers will launch our economy like a rocket.  

gh2002gh
Senior Contributor

Re: Trump suspends SS tax payments, extends Unemployment

https://www.theamericanconservative.com/buchanan/tariffs-made-america-great/ 

 

https://www.congress.gov/bill/115th-congress/house-bill/5404/text 

 

I was thinking they assassinated McKinley, but wanted to verify first.  And yes, they did.   Tariffs are dangerous to the religion of Brucie and Knox. 

cmilligan1958g
Senior Contributor

Re: Trump suspends SS tax payments, extends Unemployment


@gh2002gh wrote:

https://www.theamericanconservative.com/buchanan/tariffs-made-america-great/ 

 

https://www.congress.gov/bill/115th-congress/house-bill/5404/text 

 

I was thinking they assassinated McKinley, but wanted to verify first.  And yes, they did.   Tariffs are dangerous to the religion of Brucie and Knox. 


McKinley was assassinated by an anarchist (like today’s Antifa) Leon Czolgosz, son of Polish immigrants. 
When President Trump win re-election, I am afraid that is what the One World Order elite ruling class will do to him.