Payroll taxes pay for Social Security and Medicare. 13% unemployed is 13% not paying payroll taxes. 20% pay cuts further reduce payroll tax contributions.
Coronavirus to accelerate Social Security, Medicare depletion dates, U.S. officials say
Job and revenue losses prompted by the coronavirus will likely accelerate the depletion of Social Security and Medicare reserves, U.S. officials said on Wednesday as they released reports showing little change in the federal benefit programs’ pre-pandemic finances.