Business Groups Slam Trump’s Payroll Tax Plan, Claim It Imposes Serious Hardships On Employees – By Wesley Dockery (IB Times) / Aug 18 2020
A coalition of 30 business groups on Tuesday sent a letter to Congress and the White House criticizing President Trump’s move to defer payroll taxes through the end of the year. The letter called Trump’s executive order on the issue “unworkable” and claimed it would impose a serious hardship on employees.
“Under current law, the EO creates a substantial tax liability for employees at the end of the deferral period,” the letter states.
“Without Congressional action to forgive this liability, it threatens to impose serious hardships on employees who will face a large tax bill as a result of deferral.”
Trump issued the order earlier this month, following stalled negotiations on a COVID-19 relief package with congress. Ordinarily, many employees pay a 6.2% tax out of their paychecks each month, with the money being used to fund Social Security. Trump’s order would defer those payments through the end of the year, but workers would be expected to pay what they owe next year. Trump believes he could then pressure Congress into passing legislation that would forgive workers of the amount in payroll taxes they owe.
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