Kudlow says Trump ‘did not mean he was eliminating the Social Security tax’

White House economic adviser Larry KudlowLarry KudlowMORE said Sunday that President TrumpDonald John TrumpDeWine tests negative for coronavirus a second time Several GOP lawmakers express concern over Trump executive orders Beirut aftermath poses test for US aid to frustrating ally MORE “did not mean he was eliminating the Social Security tax” with his coronavirus executive orders. 

Kudlow told CNN’s “State of the Union” that the president will protect Social Security and Medicare, after Trump vowed to make permanent his coronavirus executive orders’ cut in the payroll taxes, which help fund the programs. 

ADVERTISEMENT

CNN’s Dana BashDana BashWhite House not optimistic on near-term stimulus deal Clyburn rips GOP proposal to give businesses tax deductions, scale back unemployment in stimulus package Birx says COVID-19 outbreak not under control because ‘people are on the move’ MORE pushed the White House adviser, asking Trump can protect the programs “and cut payroll taxes at the same time.”

“When he referred to ‘permanent,’ I think what he was saying is that deferral of the payroll tax to the end of the year will be made permanent,” Kudlow said. “It will be forgiven. The tax is not going to go away.”

“I think what he was saying is that the deferral of the payroll tax to the end of the year will be made permanent…the tax is not going away,” WH economic adviser Larry Kudlow says Pres. Trump’s promise to cut payroll taxes permanently will not impact Social Security or Medicare. pic.twitter.com/IYTpfW2IRi

— State of the Union (@CNNSotu) August 9, 2020

“Well he said he will do away with it if he gets reelected,” Bash replied

“I believe he was referring to doing away with the payback of the deferral,” Kudlow said. “And I think his intent here and it’s written in the [executive orders] very clear that we will take any steps possible to forgive this deferral. That’s what he was actually saying. We will protect Social Security. We will protect Medicare.”

“I just want to say that isn’t what the president said at all. He said the opposite,” Bash countered.

“I think he meant the deferral would be forgiven,” the White House adviser responded. “I think he was saying that the savings on the deferral will be permanent. He did not mean that he was eliminating the Social Security tax.”

The president signed a series of executive orders on Saturday, including one that permits employers to defer payment of payroll taxes through 2020 for employees making less than about $100,000 annually. Trump then committed to make the cuts permanent if he is reelected. 

Presumptive Democratic presidential nominee Joe BidenJoe BidenBiden says Trump executive order is ‘a reckless war on Social Security’ Trump got into testy exchange with top GOP donor Adelson: report Blumenthal calls for declassification of materials detailing Russian threat to US elections MORE criticized Trump for that commitment saying it would “undermine the entire financial footing of Social Security.”