President Trump announced (recently) if reelected he will explore cutting entitlements. What that means is he is looking for ways to cut Social Security, Medicare and Medicaid.
Even before Trump was elected, he was advocating privatizing Social Security, raising the retirement age to 70 and calling Social Security a Ponzi scheme. In the place of Social Security, Trump suggests Americans purchase stocks and bonds for their retirement income.
Campaigning for the 2016 election, Trump promised he would not cut Medicaid, Social Security and Medicare. However, Trump’s 2020 budget proposal includes a $1.5 trillion cut to Medicaid, $25 billion cut to Social Security and $845 billion cut to Medicare. These proposed cuts would severely impact all of us.
This July, Trump threatened to veto the summer COVID-19 relief package if it did not include a cut made to Social Security’s assigned revenue. When even Republicans in the Congress did not cave into his veto threat, he did not give up his attacks on Social Security; he ordered the IRS to stop collecting Social Security contributions – temporarily.
Most recently, Trump announced that if reelected, he will permanently “terminate” the payroll contributions that fund Social Security and partly fund Medicare. In the meantime, he is recommending Americans pay payroll tax only through the end of the year. That consolation does extraordinarily little for struggling Americans since they will have to pay it back in three months.
The Social Security Administration has made it clear: eliminating the payroll tax, as Trump has proposed, would bankrupt Social Security and prevent seniors and people with disabilities from receiving the benefits they have earned.
Finally, Social Security, Medicare and Medicaid are not entitlements – we have all paid into them. Medicare is funded by the Social Security Administration. Which means it is funded by taxpayers: We all pay 1.45% of our earnings into FICA, (the) Federal Insurance Contributions Act, which go toward Medicare. Employers pay another 1.45%, bringing the total to 2.9%.