Donald Trump to Suspend Payroll Tax Until End of 2020

He can absolutely postpone tax receipts but that is dangerous as it will have to be repaid once the declaration ends and most people will not save those funds to do so — unless congress waves the repayment.

Unemployment and the moratorium on evictions exceed his powers though.

This is nothing but a political ploy so that he can paint the Democrats as evil when they follow up with suits to prevent the executive from exceeding its authority. Which now makes sense as to why the Senate and Executive kept dragging this out and “strategizing”.

It is a brilliant strategy and likely to work but the American people are not pawns to win elections through making them suffer, they are people and they deserve more than this, from both sides.

 

According to the EO, they will not need to be repaid.

 

What he has stated he is doing is deferring payroll taxes. That means those taxes must be paid later on. If this stands then workers will see a massive hit later, when the deferment period runs out. So employers will have to hit their workers hard to bring taxes up to date. Unless he can somehow convince Congress to pass a new law canceling the taxes that were deferred.

The reason both political parties are against this idea is that like it or not the Federal government needs the tax money to operate. That and a deferrment doesn't accomplish anything real. It creates a large debt on the individual worker.

 

Trump has always advocated that Congress do their job and has tried to give them time to do it. For example when he told them he'd give them 6 months to fix DACA and the border problem or he would eliminate DACA.

As for cutting money and spending it....there are multiple instances where a President can take from one department and move it towards something else. I've already gone over instances where Obama suspended an existing law in other posts. This would apply, as a side affect, to your "cutting revenue" comment as at its essence it is suspending the tax law.

Note: I'm not defending Trump on this. Just pointing out things that have happened. I've already stated that I'm against Trump on these EO's.

 

@Nunya D.

Can democrats "return to the table" to negotiate more, or are we past that now. Is "this" the new relief package?

I appreciate your analysis so far.

Thank you

 

Not accurate.

First of all it is not an Executive Order, it is a simple memo to specific departments. Here is the full text from the source:
https://www.whitehouse.gov/presiden...-obligations-light-ongoing-covid-19-disaster/

Next, it contains no order to forgive the taxes. It only directs the Secretary of the Treasury to consider how it could be done. The exact language is:
"Sec. 4. Tax Forgiveness. The Secretary of the Treasury shall explore avenues, including legislation, to eliminate the obligation to pay the taxes deferred pursuant to the implementation of this memorandum."

If no means is found to accomplish that "Tax Forgiveness", then the tax is owed. That is what deferred means.

 

Did you say the same when Obama did a payroll tax holiday? Or about his deficit spending?

 

Which is beyond the powers of the executive branch, his EO is unconstitutional. He can order a delay, he cannot order a revocation.

 

Obama issued an executive order for a payroll tax holiday? Source?

And Obama’s spending was declining from its peak which was left by Bush. It actually went down every year except for one — trumps has gone up every single year and is expected to surpass what Obama spent in 8 years in only 4 years.

Maybe try again? On topic this time.

 

Obama signed a tax cut Bill into law. That is the way it is supposed to work. Congress creates laws, the President signs or vetoes them.

Trump just issued a memo to defer payroll taxes. Not to reduce or forgive them and with no basis in law behind them.

No, I never like any President adding to the deficit. But without exception every President does. They may lie about it and their supporters may believe those lies, the truth remains.

 

In this case the government should act because it is the government that caused the problem.

 

Also why he sent mark meadows flthis last time he is a budget hawk..

 

Nobody ever expected Trump to know what he is doing. He's just making it easier for Biden to win the election in November.

 

Who said he used an executive order to do that? He still did it. And spare us the deception that Obama was bringing down a Bush deficit. That is a flat out lie. Bush’s FY2008 budget wasn’t bad at all. It ended September 30, 2008. Democrats controlling both houses of Congress did only continuing resolution (CR) funding at prior year levels until March 2009, when Obama would be President. So all the increases in FY2009 spending happened after Bush left office and were done by Congress and Obama. Democrat lies placing blame for that years budget deficits on Bush are easy enough to fact check into oblivion.

 

I disagree about that and have an opinion article here explaining why. Trump is helping average Americans with all four of his executive orders.

 

Right. Because all those people who were hard working Americans before Covid came along have suddenly decided they prefer to be out of work and taking government handouts. All they need to encourage them to get a job is a bit of tough love.

The jobs are out there for the asking. All they have to do is get off their lazy asses and look. Right?

 

What is easy to fact check was when the housing crises hit causing a recession
At the end of Bush's term. Obama had to save the economy created more jobs than trump did unless you count the phantom jobs for reopening

 

i’m sure that made sense before you wrote it

 

good for the president. watching the dems hold americans hostage was getting sick

 

I don't like this, no point in spending it until they "eliminate the obligation to pay the taxes", otherwise I would like to have the money come tax time. If I want or need a loan I will get one, some people will get some real headaches if they dont understand its not forgiven yet and might have to pay it back soon.

 

They can always return to the table. Whether they do or not depends on if they want to spite trump or not and/or whether they feel that not doing so will give them a political win. The same can be said about trump returning to the table.

 

What happened to #flattenthecurve?

 

If Republicans don't put more money into the economy to make up for the demand deficit, we could see this recession turn into a depression. Trump's executive action is not nearly enough.

Your post is propaganda. Voters don't like Trump.

 

Propaganda Alert!

 

Good question.



Tell us again how the Orange Oaf is making the country great.