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Trump $ 400 Unemployed, payroll tax deferred: Limited hotline for the US economy



President Trump signed the executive actions to extend economic relief led by the coronavirus, during a press conference in Bedminster, New Jersey, on 8 August.

Photographer: Jim Watson / AFP via Getty Images

Issued by President Donald Trump Saturday’s executive actions led to a growing source of support for an economic recovery that had stalled after talks with Democrats on additional pandemic stimulus measures were broken. broken.

Trump’s redirection of the disaster relief fund will provide $ 300 a week in federal aid to the unemployed – down from $ 600 weekly in the Cares Act, which expired in July. That amount is capped at $ 44 billion, with the current level of unemployment likely to end in a month or two.

Read more: Better-than-expected US job data seen as the end of ‘Easy Gain’

His other significant action could have a bigger impact: it reduces the September-year-end payroll tax for workers earning up to $ 8,000 a month, meaning more 600 dollars in the employee’s pocket. Economist Stephen Moore, an ally of Trump, said the $ 300 billion tax cut would help the economy. However, other economists say it is unlikely to provide as much stimulus as Trump could hope.

While these actions may completely defeat American relief, funds for the unemployed are much more limited than in previous months, and deferring payroll taxes will not help tens of millions of people. have lost their job. Additionally, the legitimacy of Trump’s actions is not entirely clear, and the moves do not include expanding aid to small businesses that are depleting previous bailout funds.

Ernie Tedeschi, an economist at Evercore ISI, said: “Definitely better than nothing, but it is not a good solution as Congress comes to a clearer legal and logistical compromise in their financial talks ”.

The impact of the payroll deferred depends on whether the employer will stop withholding money from American wages, with voters in turn pressuring Congress to eventually pass religion. law forgives the accumulated amount.

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But employers can decide to simply do nothing in the face of uncertainty, for fear that if Congress does not act, they may be stuck trying to get their money back. to deal with their obligations to the Internal Revenue Service.


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