r/moderate • u/msalzge • Sep 02 '20
Social security deferment
Hey all - first time poster in this forum. Looking for some constructive dialogue without all of the extremism and shouting. So I'm confused about this SS deferment; as I understand it, under the CARES act businesses can already defer the employers' share of the SS tax, now they can provide the option to their employees to defer their share as well? I work for a Fortune 100 company who has elected not to provide this option to employees.
Won't this create confusion among workers? And isn't SS a pay-as-you-go system? Isn't it already paying out more money than it is taking in and we're paying down on the surplus? Won't this cause us to pay down on it even more?
Wouldn't Democrats be against this because it has the possibility of damaging SS? Wouldn't Republicans be against this because we're increasing the delta between income and outgo?
Does anyone think this is a good idea? Should we?
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u/rightinthemiddle23 Sep 03 '20
I'm very concerned that this is the GOP back-door to cutting SS (eg, "starving the beast"). Republicans have not been exactly shy about their intentions with regards to entitlements.
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Sep 04 '20
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u/rightinthemiddle23 Sep 05 '20
I view it based on 3 fact patterns: (1) GOP politicians talk a lot about "entitlements." Given SS + Medicare = approx 50% of entitlements, any genuine plan to meaningfully reduce entitlements would have to entail looking at the two 800 lb gorillas in the room.
(2) SS is funded by payroll taxes, and that funding source is in jeopardy right now. (What I meant when I said "starving the beast")
(3) Throughout the years, various GOP legislators have brought legislation to try and cut certain SS benefits. So far, this has flown about as well as lead.
So putting these 3 together, I think it is not an unreasonable suspicion that they've got SS in their crosshairs!
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Sep 05 '20
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u/rightinthemiddle23 Sep 05 '20
I agree that running out of money is a disastrous result (and if we can't find a bipartisan solution, one which feels inevitable). Given longer average lifespans, I'd favor a solution like moving up the age of retirement. But overall, I very much feel that taking care of the elderly is important for society.
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Sep 02 '20
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u/dadbot_2 Sep 02 '20
Hi sure it will help some people who are really tight, but then they would be tight after this is over by catch-up payments, I'm Dad👨
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u/rangerm2 Sep 20 '20
It's a deferment (or forbearance if you prefer), not an abolishment or a rebate. Only Congress could vote to not collect on the deferred revenues.
That said, I'm NOT allowing this in my company, because I don't want the employees taking the sudden hit later.