On September 24, the House Committee on Ways and Means Subcommittee on Social Security held a hearing on the President’s proposal to defer payroll taxes. Witnesses were Senator Ron Wyden (D-OR); Representatives Danny K. Davis (D-IL), Linda Sánchez (D-CA), Judy Chu (D-CA), and Don Beyer (D-VA); Nancy J. Altman, President of Social Security Works; Will Goodwin, U.S. Army Veteran and the Director of Government Relations for VoteVets; Amy Matsui, Director of Income Security and Senior Counsel at the National Women’s Law Center; Janice Dean; Max Richtman, President and CEO of the National Committee to Preserve Social Security and Medicare; and Robert Roach, President of the Alliance for Retired Americans. Visit the committee website for more information and to view video of the hearing.
The Arc opposes the recent executive order and resulting Internal Revenue Service rule that allows employers to temporarily delay payroll taxes and supports legislative efforts to rescind the rule. A delay in payroll taxes will cost the Social Security Trust Funds interest income and workers will still be required to pay the taxes later on. In addition, we share the concerns of the United States Chamber of Commerce and others about the administrative and financial burden that this delay will place on businesses and workers. The President has also made public statements advocating to repeal payroll taxes entirely. Social Security Disability Insurance and other Social Security benefits for people with disabilities rely on these payroll taxes and the Social Security Administration’s non-partisan actuary estimates that the Disability Trust Fund will run out of funds in 2021 and the other Trust Fund in 2023 if payroll taxes were repealed.