As Americans wait for another COVID-19 package, President Donald Trump said he may attempt to suspend the payroll tax via an executive order.
“Well, I may do it myself,” Trump told “Fox & Friends” on Wednesday. “I have the right to suspend it, and I may do it myself—I have the absolute right to suspend the payroll.”
Payroll taxes are shared by the employer as well as the employee. Each party responsible for a 6.2 percent levy that goes toward Social Security and a 1.45 percent tax payment for Medicare. Earlier this year, the Trump administration used its authority to delay the due date for 2019 federal income taxes, pushing it back to July 15.
He added in the interview “the Democrat states—they dont want to open up anything. They dont want their schools open, they dont want their businesses open, they want to keep it shut, and you cant do that.”
Michael Graetz, a professor of tax law at Columbia University, told CNBC that a president only has the ability to postpone payroll taxes. “He doesnt have the authority to forgive the taxes,” said Graetz. “Only Congress can do that.”
For the past several weeks, Democrats and Republicans have been at an impasse over a new stimulus package that is designed to offset losses incurred during the CCP (Chinese Communist Party) virus pandemic.
Federal unemployment benefits of $600-per-week ended last week, and days before that, a federal moratorium on evictions ended. Republicans have proposed a $200-per-week initial benefit that would later replace 70 percent of workers wages.
The White House is seeking to provide another round of $1,200 stimulus payments and extending the supplemental jobless benefit and partial eviction ban. House Speaker Nancy Pelosi (D-Calif.) appears intent on an agreement as well, but shes made it clear she needs big money for state and Read More From Source