Cuts To Payroll Taxes May Hurt Social Security Beneficiaries

As part of his jobs plan, one suggestion that President Obama offered was to extend and expand payroll taxes. Many from both sides of the aisle immediately wondered what the effect would be for Social Security. Estimates currently predict that Social Security Disability programs will run out of money around 2017 and that all Social Security programs will become insolvent by 2037. Cutting the taxes that fund these programs that are already facing severe shortages may worsen the problem.

Obama seeks a $175 billion one-year extension, and he requested halving the payroll tax for employees to 3.1 percent in 2012. Employers’ rate would be 3.1 percent on the first $5 million of their payrolls.

Will these cuts do more harm than good in the long term? The Center for Budget and Policy Priorities found that the cuts would make a significant difference in the amount that middle class families could spend. Moody’s Analytics concluded that allowing the payroll cuts to expire would reduce gross domestic product next year and mean one million fewer jobs by the end of 2012.

Certainly the economy is still in need of a boost, but at what expense? If the payroll tax cuts expand, we will have to look elsewhere for how to make Social Security programs solvent again, and that is what worries Social Security beneficiaries. Without increased funding, the other way to improve a budget is to cut costs, which could mean things like stricter qualification standards, lower benefits and higher ages for retirement benefits. More information on how changes to Social Security affect disability applicants is available from a Tulsa Social Security Disability law firm.

Troutman & Troutman, P.C. – Tulsa Social Security Disability lawyers

Categories

    I didn't think there was a caring professional considerate attorney firm on the planet, but Troutman & Troutman proved me wrong. From the receptionist to the legal assistance to the attorney and more they were exceptional people.

    - Robert S.

    They did a fantastic job getting everything gathered up and getting the trial done as quickly as possible. Anytime I had a question they were patient and help me understand what was going on. Especially Christy and Charlie were great.

    - Michael M.

    Steve Troutman was able to get my short-term and long-term disability for me. Then Erin another lawyer for their firm got my Social security disability for me. Great people.

    - Billy S.

    Mr. Troutman walked me through the entire process. Heather was available each time I called, answered all my crazy questions, and helped me fill out forms along the way. I was never treated like I was wasting time.

    - Julia C.

    Erin and Keith were fabulous! They were compassionate, helpful, and very responsive! They made the process very smooth and painless every step of the way.

    - Valerie W.

We Are Here to Help 

Free & Confidential Consultations
  • Please enter your first name.
  • Please enter your last name.
  • Please enter your phone number.
    This isn't a valid phone number.
  • Please enter your email address.
    This isn't a valid email address.
  • Please make a selection.
  • Please enter a message.