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RE :”My understanding is that the Payroll Tax doesn't “directly” fund SS. Instead SS receives an IOU from the Treasury for the money collected. BUT, doesn't the lack of a payroll tax mean that SS will not get another IOU? Doesn't this mean that SS will run out of money earlier?”

Yes, Those two links at the bottom of this post address the phony SS trust fund with the worthless IOUS. This is a huge scam.

Yes, in theory the worthless IOUs get traded in faster. But now some Americans will be putting the money into personally owned retirement accounts (rather than spending it as Democrats want.) This is why Democrats will have to oppose it. And it's an option for voters/workers. Dems would have to oppose an option for voters. You see how the trap is laid for them?

Obama will demand the FICA tax cut extension with taxes on the rich, Republicans will propose spending cuts instead, and Republicans will cave and pass them with no cuts or taxes.
(Actually I think there is a tax on Fannie and Freddie transactions in this two month bill.)

IMHO - History will record the ending of the "Payroll Tax" as the moment that the SS Ponzi scheme came to an end.

There was not enough coming in to keep it going beyond 20 years anyway, now the incoming has been reduced. So, without massive cuts in benefits, the "years remaining for SS" projections will become shorter and shorter. And AARP sits on it's A$$.

"(Actually I think there is a tax on Fannie and Freddie transactions in this two month bill.)"

Yes, it's the "pay for" for this cut. BUT, I don't consider it real. It's over 10 years, on mortgages over 200k, but it is based on assumptions of the number and amount of housing transactions over those 10 years. So it is BS and the Dems and Repubs BOTH know it.

Did you notice that the Dems cut Medicare $500 million in order to get Obamacare past the CBO (Congressional Budget Office), but now the money is being restored, as Repubs predicted, and the Repubs are not saying a word?