by: Brent Smith
I ask everyone to read this or any article on the proposed Trump Payroll tax cut with a large grain of salt. By that I mean you must read between the lines, as everyone has an agenda – good or bad.
The bottom line to consider is that a tax cut – any tax cut, is good for America and bad for government. It “allows” the people that pay the tax to keep more of their own money. This effectively shuts the government out of the equation, and they don’t like that. It’s why pundits, bureaucrats and politicians alike hate the idea.
They would much prefer to give “targeted” relief. This merely means that, as always, they will be the ones to pick the winners and losers.
A payroll tax cut positively affects both employees and employers. Many employers may even opt to add their portion of the cut to the employee’s salary, increasing take-home pay even more.
However, Trump wants to go even further by suggesting a suspension of all Payroll taxes for the balance of the year. This, I can assure you, will NEVER sell on Capital Hill.
All the government hacks in Washington understand something crucial that the general public likely does not. They understand that reinstituting this tax after people have gotten used to not paying it, would end in a citizen revolt. It’s why withholding was devised in the first place. What the public doesn’t see, won’t upset them.
But if they get a taste of reality – of an expanded paycheck, they’ll be hard-pressed to give it up.
After Coronavirus-Fueled Stock Market Drop, Trump Considers Payroll Tax Relief
Stocks are expected to rally today after a historic drop on Monday. Concerns over the price of oil (thanks to a price war between Russia and Saudi Arabia) and how the coronavirus will further affect the global economy sent shares tumbling by 2,013 points: the most significant point drop since Dow began recording stock averages in 1884.
The steep drop stoked fears about the future of the U.S. economy. In response, President Donald Trump announced on March 9, 2020, that he would be meeting with Congressional Republicans on Tuesday to discuss proposed solutions. Included in that discussion? Tax relief, including payroll tax cuts.
The last payroll tax cut for American workers was pushed through by the Obama administration in 2011. The cut was intended to kick-start a struggling economy after the 2008 recession. Congress renewed the temporary payroll tax cuts in 2012.