According to an insurance industry group, ending payroll taxes will put the Social Security Disability program out of business next year, with the main part of the Social Security program to follow in 2023.
Trump’s executive order regarding unemployment benefits gave employers the option not to collect these taxes, and, if re-elected, he as promised to eliminate them. These taxes are used to fund Social Security.
If the payroll tax were eliminated with no alternative source of revenue enacted, the Social Security Disability Insurance (DI) Trust Fund would become “permanently depleted in about the middle of calendar year 2021, with no ability to pay DI benefits thereafter,” according to Social Security Actuary Stephen Goss.
In a Tuesday letter to Sens. Chris Van Hollen, D-Md.; Chuck Schumer, D-N.Y.; Ron Wyden, D-Ore.; and Bernie Sanders, I-Vt.; Goss added that the Old Age and Survivors Insurance (OASI) Trust Fund “and Trust Fund reserves would become permanently depleted by the middle of calendar year 2023, with no ability to pay OASI benefits thereafter.”https://www.benefitspro.com/2020/08/25/ending-payroll-tax-would-drain-social-security-by-mid-2023-412-103032/?kw=Ending%20payroll%20tax%20would%20drain%20Social%20Security%20by%20mid-2023&utm_source=email&utm_medium=enl&utm_campaign=bprodaily&utm_content=20200826&utm_term=bpro&slreturn=20200726155055
There is no such this as grandfathering. People on Social Security today would lose their benefits.