The Payroll Tax Bankrupts Social Security

social securityRemember way back last year when the Bush tax cuts were set to expire, and middle class Americans potentially faced the biggest tax hike in history, in the middle of a floundering economy? Then remember how President Obama extended the cuts, plus reduced the employee-contributed side of the payroll tax (FICA) from 6.2% to 4.2% until the end of the year?

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Well it’s the end of the year, and our lawmakers have spent much of the past couple of weeks debating whether or not that tax holiday should expire or be extended. There’s been a lot of back-and-forth and finger pointing on the matter, between Republicans and Democrats, between the House and the Senate, between the Roadrunner and Wylie E. Coyote…

Just kidding on that last one. But politics really does feel like that sometimes, doesn’t it?

The measure to extend the lower rate on the payroll tax has been linked with the construction of the Keystone oil pipeline, as well as the ‘Doc Fix’ provision of Medicare. Republicans wanted to extend the rate for one year, while Democrats were content to limit the extension to two months. The Republicans eventually caved, and the two-month extension was passed and signed by the president a few days ago.

Here’s the part of the story that no one seems to be talking about: Why is President Obama trying to defund Grandpa and Grandma’s retirement? That payroll tax, the one labeled FICA on your paycheck stubs, is what funds Social Security. Can you imagine if we had a Republican president cutting the funding for Social Security? Talk about throwing Grandma off a cliff.

For all of President Obama’s talk about helping those that need it most instead of corporate fat cats, he’s sure not walking the line on taking care of our senior citizens. Does he want the system to fail? Granted, it needs some major overhauling in order to become solvent again, but cutting the sole source of revenue for the millions of Americans that rely on that monthly check hardly seems prudent.

This isn’t an isolated incidence. Obamacare defunds Medicare of $500 billion over the next ten years, effectively ending the program. How can the president say that senior citizens might not get their checks if Republicans don’t do whatever the Democrats want, when it’s his own provisions that fail to provide for them? 

What’s the plan, Mr. President? A two-month extension on a tax holiday is hardly going to solve our economic woes. All it’s going to do is create a mess in accounting departments throughout the country.

I don’t know about you guys, but I think I’ll be holding onto that extra 2% of my paycheck and investing privately for my own retirement. At the rate things are going, there’s no way that Social Security will be around in my old age.

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