President Donald Trumps executive actions to suspend payroll taxes would save the average person about $1,200 over a period of four months, White House economic adviser Larry Kudlow said.
“I think its going to be in a couple of weeks, and I think its going to come to about $1,200 per person,” Kudlow said Aug. 9 in a televised interview. Another round of stimulus checks and payments would be worth about $1,200, but talks about a broader CCP virus relief bill are currently in limbo.
In the midst of the pandemic, the president has repeatedly suggested a payroll tax cut, meaning that some money wont be going to Medicare and Social Security. Its drawn a rebuke from both Democrats and Republicans in Congress.
“With respect to the payroll tax, basically were giving 140-some-odd million people who worked through this pandemic, theyre heroes, were giving them about a $1,200 wage increase after-tax,” Kudlow said on CNNs “State of the Union.”
Trump also extended federal unemployment benefits authorized under the CARES Act, although he cut them by $200 per week to $400 per week.
Kudlow said that its not clear if all 50 states support the new unemployment executive order.
“So based on our estimates, the states will be able to provide the extra $100,” he said. “Well probably find that out today or tomorrow as we make our canvass. Weve been in touch with them. We have very good records coming out of the Treasury Department. But we will be in touch.”
Meanwhile, Trump also extended a federal moratorium on evictions that expired last month. The unemployment expansion also expired last month.
On Aug. 7, after talks broke down between the White House and Democrats, Trump announced he would need to take executive action; Democrats say its an unconstitutional move that will likely be challenged in court.
Trump said in a press conference on Aug. 7 that a number of his executive orders have gone to court, and the administration ultimately won some of those challenges.
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