Does the social security tax cut reduce social security funds?

It’s better known as the payroll tax cut… probably so it can be portrayed as helping the little guy…the employee. Short-term help sure; long-term not so much.

However it also applies to self-employed individuals who pay a self-employment tax on their annual Form 1040 each year… somethng that has nothing to do with payroll.

I seem to recall that social security funding that is reduced by the cut is made up by transfers from the general fund…but I can’t find anything specific on that.

Your correct

The drop in SS finances is covered out of the General Fund. From the view of its internal finances, there’s no difference.