House Democrat Argues Payroll Tax Breaks Harm Social Security

Rep. Ted Deutch (D-Fla.) applauds President Obama for fighting to include additional tax cuts for working-class families. Deutch was also very critical of reducing the payroll tax rate in an Op-Ed for the Miami Herald saying it would only make Social Security more vulnerable and force more deficit spending to compensate for lowered payroll tax rates.

“Under this plan, a large part of Social Security revenues could ultimately be subject to the discretion of Republican leaders who support diverting it to the stock market or cutting benefits,” Deutch wrote. “Worse, if the reduced payroll tax were made permanent, Social Security’s long-range funding gap would more than double, converting a modest shortfall decades away into a crisis right around the corner.

“Democrats concerned about a payroll tax cut are not, as some have suggested, engaged in fear-mongering. If anything, we fear that the White House, with its laser-like focus on the critical task of providing middle-class families with tax relief and protecting benefits for unemployed workers, may have unintentionally overlooked this threat to Social Security. This November, Americans did not vote to dismantle Social Security. We cannot ignore the fact that in poll after poll, workers have reaffirmed their willingness to contribute to Social Security in exchange for some basic security at retirement or in the event of a disabling injury or illness.”