To the Editor:
Huzzahs to Stephen Smoot for debunking the mythical “raid” on Social Security (a longtime pet peeve of mine) in the 2 April edition of the Examiner. There are enough genuine issues with Social Security without having to deal with made-up ones as well.
However, Mr. Smoot’s suggestion that President Trump’s policies may bring higher wages and additional income into the Social Security trust fund (the “Fund) is highly speculative and overlooks Trump’s several Fund unfriendly proposals.
First, while there are pros and cons to deporting illegal workers, implementing that policy would reduce the amount being paid into the Fund. Illegal workers easily can make up an SSN and pay FICA, but it’s far more difficult to claim the benefits. Illegals paid approximately $25.7 billion into the Fund in 2022, money to fund benefits that they unlikely ever are to see. Proposals to restrict legal immigration also would have an adverse impact on the Fund, as immigration is one of the key drivers of American population and tax base growth.
Also, the proposal to eliminate the tax on Social Security benefits would erode the Fund. The tax was enacted to put the taxation of Social Security benefits on a par with the taxation of private pensions, where repayment of post-tax worker contributions are not taxed but benefits funded by pre-tax employer contributions and earnings on the fund are. But more to the point: (i) lower income people are exempt from the tax and (ii) the proceeds of the tax are paid to the Fund ($50.7 billion in 2023) and to the Medicare HI Trust Fund ($35.0 billion in 2023). Accordingly, eliminating that tax will disproportionately benefit higher earners and hasten the day that the Fund no longer can pay benefits to anybody.
Finally, Mr. Smoot expresses concern about our excessive sovereign debt, a concern that I share. I look forward to his opposition to the proposed tax cuts that are projected to explode the deficit.
Best regards,
John Geracimos
