We’re all aware that Trump has permitted stopping collecting the employee part of the Social Security tax = “the payroll tax” from now to the end of the year. Which amounts to a ~6% take-home pay bump for most wage earners. And which supposedly would be paid back by taxing the same people double some time in early 2021. See also:
My contention is this is the opening move in yet another RW attempt to defund SS. If Trump is elected they’ll find a reason to not reinstate the tax and SS will quickly “go broke” and need “urgent reform”.
Here’s some more background.
SS in general is a variant on a pyramid scheme where our taxes today are not going to "save up" money for ourselves later, but are going to pay benefits to the elderly today. Who, when they were working, had been paying the benefits of the then-elderly before them. etc., back to the beginning.
SS need not be a failed pyramid scheme as long as the economy grows fast enough. And due to the US’s growth since the 1930s SS has not been a failed scheme yet, despite vast and often unexpected increases in the number of beneficiaries and the real level of benefits paid out.
And yes, there is a trust fund, and there are legit planned differences over the years between total SS tax intake and total SS benefit outflow.
My actual topic:
So far the vast majority of the money going out from SS has gone to white people. Historically, the vast majority coming in has also been from white people. But that is changing. Just due to demographics it’s a foregone conclusion that if nothing else changes by 2050 the recipients will be vastly whiter and wealthier while the payers-in will be vastly browner & relatively poorer. It has long been recognized that this may pose a problem for the long term political legitimacy / viability of SS.
If the Rs succeed in hammering SS in the next 5-10 years they will have the effect of “pulling up the ladder” before many brown people get on the receiving end of the payout. Almost all historical benefits will have gone to white folks of the mid-boomer era and earlier.
At the same time they’ll also screw a lot of white folks presently in their 50s & early 60s = late Boomers / early next-gen who’ve been expecting to receive benefits that will be “reformed” into unrecognizability.
Conversely, from the younger browner folks’ POV they’ll be unburdened from paying for the white elder Boomer overclass. But will be forced to fend for themselves in old age or disability.
So: Net net, is the racial aspect of this RW move my imagination, a bug, or a key feature of their design?