By Payroll and Entitlements Editorial Staff
In response to a letter from Sens. Bernie Sanders (D., Vt.), Ron Wyden (D., Ore.), Chris Van Hollen (D., Md.), and Chuck Shumer (D., N.Y.) regarding hypothetical legislation that would change the tax rate paid by employers, employees, and self-employed individuals to zero percent for FICA payroll and SECA taxes that fund the OASDI trust funds, SSA Chief Actuary Stephen C. Goss said:
If this hypothetical legislation were enacted, with no alternative source of revenue to replace the elimination of payroll taxes on earned income paid on January 1, 2021 and thereafter, we estimate that DI Trust Fund asset reserves would become permanently depleted in about the middle of calendar year 2021, with no ability to pay DI benefits thereafter. We estimate that OASI Trust Fund reserves would become permanently depleted by the middle of calendar year 2023, with no ability to pay OASI benefits thereafter.
(Letter from Stephen C. Goss, August 24, 2020; https://www.ssa.gov/oact/solvency/VanHollenSandersWydenSchumer_20200824.pdf.)
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