Question: If this payroll tax cut is saving me $40 a month, does it cost me in SS retirement funds in the future? If it does cost me, to what extent?
Well, I remember asking that same question back in December 2011 when that issue was being ignored during the Christmas Holidays and the pre-Iowa caucus debates.
All I know is the numbers on your Form SSA-7005 Personal Earnings and Benefit Statement will not read the same as if you were contributing in full (2% more).
If you believe that Social Security will continue to operate in the future “as promised under current laws” the answer is no, the payroll tax cut does NOT impact your future benefits:
http://www.redstate.com/dhancock/2011/12/23/understanding-the-payroll-tax-cut/
Now the REALITY is that as the system implodes in the future due to lack of funding, EVERYBODY will see reduced benefits, and the tax cut probably makes that day closer.