President Donald Trump stated that he will try to unilaterally suspend the payroll tax, an idea which has faced opposition in Congress.
As Americans wait for the passage of another stimulus package, President Donald Trump stated that he might try to unilaterally suspend the payroll tax through an executive order.on Wednesday. “I have the right to suspend it, and I may do it myself — I have the absolute right to suspend the payroll.”
“Congress has to pass tax laws, not the president,” Seth Hanlon, a tax-policy expert at the Center for American Progress, told Yahoo Money. “He has limited authority to postpone tax filing and payment deadlines, in instances of disasters.”to postpone the payroll tax, though doing so in this case would be “a real stretch of his authority,” according to Hanlon. Such provisions are intended for situations when people can't file their taxes, like in the case of a natural disaster.
If employers decide to stop withholding the tax, they're taking an enormous risk unless Congress acts later and bail them out of paying the tax.“Unless they withhold it at the time of the paycheck, they'll have to come up with a payment separately,” Hanlon said, adding that any delay would not be effective as a stimulus policy.
A payroll tax cut will disproportionally benefit high-income earners. For instance, a couple earning $275,400 would receive $10,534 in tax cuts over six months, while a single parent earning $20,000 as an essential worker cleaning hospital rooms would receive $765, according to an“Even it works, it only helps people that are continuing to draw paychecks, it doesn't go to anybody who's lost their income or their paycheck,” Hanlon said.
Deutschland Neuesten Nachrichten, Deutschland Schlagzeilen
Similar News:Sie können auch ähnliche Nachrichten wie diese lesen, die wir aus anderen Nachrichtenquellen gesammelt haben.
Facebook removes Trump post over coronavirus informationFacebook removed a video post from President Trump's personal page that included a segment from a Fox News interview in which the president said children are 'almost immune' to COVID-19.
Weiterlesen »
Watch live: Trump holds briefing as coronavirus relief negotiations continuePresident Donald Trump is expected to hold a press briefing on Tuesday as Congress continues to negotiate the parameters of the next coronavirus relief package.
Weiterlesen »