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Pay May Drop Under 2020 Democrats’ Safety Net Plans, Study Says

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  • Proposals could lower economic growth by 1.17%, study finds
  • Democrats eyeing payroll tax increases to fund Social Security
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Photographer: Eilon Paz/Bloomberg

Proposals by several Democratic presidential candidates to shore up Social Security by raising payroll taxes could have a downside: lower economic growth and reduced wages, according to a study by the right-leaning Tax Foundation.

Democratic contenders including former Vice President Joe Biden and Senator Bernie Sanders are proposing higher payroll taxes as some voters grow concerned that the Social Security trust fund they’re paying into won’t be there when it’s time for them to retire.