Trump’s Payroll Tax Deferral, Explained

Sourced from https://www.thesimpledollar.com/money-trump-payroll-tax-deferral-explained/

Jobs numbers are improving, and the stock market is doing well, but millions of Americans are still in need of assistance. Federal unemployment benefits expired a few weeks ago. These benefits provided people with an extra $600 a week to help get them through the pandemic. And as work on a new relief bill has stalled, Democrats and Republicans remain far apart on a variety of issues.

The August recess means new legislation isn’t likely until sometime in September, at the earliest. Not wanting to wait, President Trump issued a series of executive orders, including one that would encourage businesses to stop collecting payroll taxes.

[Read: Biden’s Economic Plan, Explained]

Trump’s payroll tax order would mean bigger paychecks for most people — maybe. Overall, there’s a fair amount of uncertainty surrounding the president’s directive. It’s difficult to know if workers will see a bump, since employers may ignore the president&#… Read More

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