“If I win on 3 November, I intend to skip these taxes and cut the payroll tax permanently,” Trump said at a press conference in Bedminster, NJ. “I will make them permanent. . “
“In other words, I’ll extend it after the end of the year and end the tax,” Trump later added. “And so we’ll see what happens.”
The major changes to the tax codes belong entirely to Congress, so Trump alone cannot waive American tax debts or enact permanent changes to the tax law. Democrats and Republicans have also faltered at Trump̵7;s push for payroll tax cuts in the next coronavirus aid round talks, suggesting that longer-term tax cuts could be. it is even more difficult to guarantee if Trump does indeed win re-election.
In doing so, however, Trump will embark on a daunting process that could have devastating fiscal implications for programs including Social Security, which watchdogs close. This has warned that in the dire financial situation it is expected next year that expenses will exceed their gross income.
Garrett Watson, a senior policy analyst at the Tax Foundation, said: “By making permanent cuts, it immediately makes you question what is going to happen in the benefits side. “It gets worse if you don’t have a revenue stream to fill [the cut].
For now, the exact functioning of the Trump order remains unclear. Usually, employers automatically withhold payroll tax from an employee’s paycheck and send the money directly to the federal government. However, by order of Trump, those payments are delayed from September 1 to the end of the year. Trump said on Saturday that it would lead to “larger salaries for working families.”
However, some economists have questioned the wisdom of Trump’s payroll tax policy. Coupled with the uncertainty about how it’s actually implemented, the directive doesn’t help some people who are facing the greatest difficulty caused by the coronavirus, said Chye-Ching Huang, senior director of economic policy. on the left wing says- based on the Center for Budget Priority and Policy.
“Even if people are going to see a bigger paycheck in a few weeks, the basic policy is really poor policy,” she said. “Those who get the biggest increase in their wages still have a job, still get income … People who lose their jobs or retire or receive income from other sources won’t see help. Anyway from this. ”