Trump implementing a payroll tax cut through executive order would blow a hole in Social Security and Medicare's finances, economists warn

Andrew Harnik/Reuters

• Economists are warning that if Trump enacts a payroll tax cut, it would weaken the shaky finances of the Social Security and Medicare trust funds.
• It's unclear whether the president would attempt to replace the funding as Congress did when it deferred employers' Social Security tax payments earlier this year.
• "It's like borrowing money from the Social Security and Medicare trust funds to give to employers just to hold," said Seth Hanlon, a tax expert.
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A group of economists at a think tank are warning that if President Donald Trump moves forward with a payroll tax cut through an executive order, the step would weaken the funding mechanisms for Social Security and Medicare.

Over the past week, the president has threatened to circumvent Congress and sign an executive order to enact a payroll tax cut. The tax refers to the 15.3% levy on wages imposed by the federal government, and evenly divided between employers and workers. Most of it funds Social Security, but it also helps finance Medicare.See the rest of the story at Business Insider

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