It was a few months ago that the Republican Study Committee released a controversial budget proposal that supported, among other things, the advancement of Social Security and Medicare. This, understandably, sparked a swift backlash from the show’s Democratic supporters.
But soon after, Donald Trump seemed to think he could try to turn the tables. In late March, the former president claimed that Democrats were trying to “destroy” Social Security by “allowing immigrants to come in.”
None of it made any sense. In fact, it was a reminder that the would-be Republican nominee still doesn’t understand the basics of how Social Security works. As a Washington Post fact-check report explained, “illegal immigrants improve the health of Social Security and Medicare” by paying payroll taxes without receiving benefits. ”
In other words, Trump saw reality backwards.
This week, the idea that Democrats are “destroying” Social Security became even more foolish. NBC News reported:
The trust fund that the Social Security Administration relies on to pay benefits is now projected to be depleted in 2035, one year later than previously predicted, according to the Trustees’ annual report released Monday. There is. … The Social Security Board acknowledged that the slightly improved outlook was due to more people contributing to the program amid a strong economy, low unemployment, and rising employment and wage growth. Ta.
In other words, despite the long-term challenges the system faces, economic growth during the Biden administration has been so strong that Social Security’s finances have gotten better, not worse.
“This year’s report is good news for the millions of Americans who rely on Social Security, including about 50% of seniors for whom Social Security is the difference between poverty and a life of dignity. All benefit reduction events are being pushed forward into 2034-2035,” Social Security Secretary Martin O’Malley said in a statement.
O’Malley also used the opportunity to urge Congress to extend the trust fund’s solvency “on a bipartisan basis, as we have in the past.”
That seems highly unlikely, given that such a move would require Republicans to accept some concessions on the tax front.
But further complicating matters is the fact that President Trump appears hell-bent on launching the largest and most aggressive mass deportation program in generations. Whatever your opinion on immigration, there is no great mystery as to how such a move would affect Social Security. That would weaken the fiscal health of the system.
It’s actually not that complicated. When employers hire undocumented workers, many of whom rely on fraudulent Social Security numbers, the companies withhold payroll taxes that go toward Social Security and Medicare. However, these workers cannot receive Social Security or Medicare benefits because they are not eligible. This means that each of these employees inadvertently strengthens the program’s finances. That means they are putting money into the system without taking anything out.
(Why would they do that? Because even after payroll taxes, these workers believe they can make more money than the country they left behind.)
If Trump were to implement a mass deportation plan and succeed in deporting millions of undocumented workers, that It would weaken the finances of Social Security and Medicare and accelerate the bankruptcy of the Social Security program. The former president may not understand any of this, but voters should.
This post will update our latest information Related previous coverage.
