GOV/MIL Donald Trump to Suspend Payroll Tax Until End of 2020

[Old Gray Mare]

This may not be such a good thing. I don't know about the rest of you but I'm not looking forward to a huge tax bill come New Years Day. DH and I are talking about putting a bit extra by to try and cover this. We may have to call the accountant to figure out how much?

Fair use.
Donald Trump to Suspend Payroll Tax Until End of 2020
by CHARLIE SPIERING 7 Aug 2020
President Trump said Friday he would defer the payroll tax until the end of the year, using an executive order.

The tax would continue to be deferred until the end of 2020, the president said, and would likely be retroactive from July 1.

He said that by the end of 2020 the payroll tax break could be extended.

“Hopefully I’ll be here to do the job,” Trump said, hinting at the results of Election Day.

The president also said he would extend unemployment benefits, defer student loan payments and interest, and extend the eviction moratorium as well as an order requiring health insurance companies to cover pre-existing conditions.

“If Democrats continue to hold this critical relief hostage, I will act under my authority as president to get Americans the relief they need,” he said.
The president said that the lawyers were drawing up the executive orders and that they could be signed by the end of the week.

Asked whether he was concerned about the legality of his executive order, Trump replied, “No, not at all. You always get sued, everything you do you get sued … we’ll see.”

The president also declined to specify whether or not he would extend federal unemployment benefit checks at the full $600 a week.

But Trump said he was determined to help Americans still struggling with the virus and the cost of the economic shutdowns despite unprecedented obstruction from Congressional Democrats.

“Tragically Nancy Pelosi and Chuck Schumer continue to insist on radical leftwing policies that have nothing to do with the China virus,” Trump said.

Pelosi and Schumer are demanding a $2.5 trillion package that White House Chief of Staff Mark Meadows described as a “blank check.”

Meadows and Treasury Secretary Steven Mnuchin continued negotiations with Democrats throughout the week but ended Friday recommending that Trump act unilaterally.

“The Chief and I will recommend to the President, based upon our lack of activity today, that he move forward with some executive orders,” Mnuchin said to reporters on Capitol Hill before leaving for the evening.

The enhanced federal unemployment checks of $600 a week ran out on Friday.

link to source:

Donald Trump to Suspend Payroll Tax Until End of 2020

President Trump said Friday he would defer the payroll tax until the end of the year, using an executive order.

www.breitbart.com

 

[tiredude]

terrible idea......unless he is buying time to get rid of it for awhile......

 

[Knoxville's Joker]

or forcing a violent contraction in government as things get worse tax wise...

 

[Ta-wo-di]

When they talk about payroll tax they are talking about the employee and employer portions of Social Security. They are not talking about income tax. SS is insolvent anyway because of the theft by Congress so what does it matter? It’s all going down at some point.

 

[SmithJ]

When they talk about payroll tax they are talking about the employee and employer portions of Social Security. They are not talking about income tax. SS is insolvent anyway because of the theft by Congress so what does it matter? It’s all going down at some point.

It matters to some people and businesses since it is difficult to pay six months or more at once instead of paying it each week in increments

 

[mechanic 217]

Not clear to me at this point , does he want to defer them? or eliminate them?

 

[JasmineAndLace]

This does not sound like a particularly good idea to me unless there is some provision that at some point in the future the amount not collected now will not "come due" in one huge lump sum. This would devastate a lot of employers, especially the small business owners.

Pelosi and Schumer have dug in their heels and made demands that certain of their pet projects be included in the pandemic aid package which have absolutely nothing to do with helping the American people who are suffering. All these alleged legislators know how to do is bicker and argue and make sure they get their multiple "vacations" per year and yet their salaries go on without interruption. Years ago legislators were paid no salary but received a "per diem" stipend--so much per day when they were actually in session and doing something, not vacationing. I wish Trump could make an executive order to restore that idea and maybe we could get rid of some of these worthless career politicians.

 

[Sicario]

When they talk about payroll tax they are talking about the employee and employer portions of Social Security.

Federal payroll taxes include Social Security and Medicare. These deductions amount to 7.65% for each the employer and the employee.

 

[jed turtle]

Sure seems to me like he is setting up the world for a Grand Jubilee!

all debts cancelled, the Federal Reserve is destroyed, everybody gets to scramble and support “themselves” for change, and I bet a lot of them will start praying to God for the first time in their pathetic lives...

 

[Luddite]

or forcing a violent contraction in government as things get worse tax wise...

Removing any cancerous tumor gets dicey for the host. What you call a violent contraction, others would call "right-sizing".

I doubt that our current system allows for the necessary adjustments. This just gives both sides something to rail about.

In my world, a 75% cut in government would be a good start. MANY people would be hurt. Just like chemo and radiation hurt most initially. jmho

 

[agmfan3]

Will the payroll tax cut be automatic from all paychecks? Or is it something the employer has to "sign up" for?

 

[MountainBiker]

This makes no sense and likely goes far beyond his authority. It will hurt him more than help him come Nov. as it will feed into the dictator charges the Dems have been making. Remember, it is the Moderates that decide the election, not the liberals or conservatives.

 

[West]

The FICA payroll tax is a scam to begin with.

One, and many do die every day that they and their employers have paid into the FU system their whole working careers and get not one penny of that 15% plus compliance back to their estates.

For those who are worried about a bill come the end of 2020 for their FICA taxes simply put 10% of your hard working income away into a savings account. Your banker will be super happy.

Same for employers but not only 10% for your income but also 10% for each of your employees incomes.

10% is high and some of that might be returned back to you, (if you have to pay the US. Treasury back) however one thing no one talks about is the added cost to be compliant that the employer pays for free to collect and send those taxes in to the Treasury. Employers are the unpaid tax collectors in the USA. Usually the CPAs get the compliance fees.

This is a great thing our great PRESIDENT is doing!

God bless Trump!

 

[SmithJ]

The FICA payroll tax is a scam to begin with.

One, and many do die every day that they and their employers have paid into the FU system their whole working careers and get not one penny of that 15% plus compliance back to their estates.

For those who are worried about a bill come the end of 2020 for their FICA taxes simply put 10% of your hard working income away into a savings account. Your banker will be super happy.

Same for employers but not only 10% for your income but also 10% for each of your employees incomes.

10% is high and some of that might be returned back to you, (if you have to pay the US. Treasury back) however one thing no one talks about is the added cost to be compliant that the employer pays for free to collect and send those taxes in to the Treasury. Employers are the unpaid tax collectors in the USA. Usually the CPAs get the compliance fees.

This is a great thing our great PRESIDENT is doing!

God bless Trump!

Exactly how is it great? You can’t use the money because you still have to pay it, you still have to file the same tax forms to account for it, except they will be more complicated and cost more.

 

[West]

If you feel a little braver, take the 10% of your income and buy physical PM US coin minted at the US mint. May gain way more, if your lucky.

 

[West]

Exactly how is it great? You can’t use the money because you still have to pay it, you still have to file the same tax forms to account for it, except they will be more complicated and cost more.

Right, making the individual save their own monies/labours for their retirements and or making their own safety nets is wrong?

I suppose you think the government does it better?

And again when the government does it and you die earlier with no dependents you get not one penny back.

However if you deposit the 10% into a private account (or PMs) when you die with no dependents the bounty will go to your loved ones or at least a nice funeral. Or donated to a good cause, etc..

Think about it!

 

[ncmissouri]

It's looking like NESARA.

 

[SmithJ]

Right, making the individual save their own monies/labours for their retirements and or making their own safety nets is wrong?

I suppose you think the government does it better?

And again when the government does it and you die earlier with no dependents you get not one penny back.

However if you deposit the 10% into a private account (or PMs) when you die with no dependents the bounty will go to your loved ones or at least a nice funeral. Or donated to a good cause, etc..

Think about it!

None of that answers my question. How is billing people and businesses for 6 months of payroll taxes all at once “a great thing”?

 

[West]

None of that answers my question. How is billing people and businesses for 6 months of payroll taxes all at once “a great thing”?

I did answer you. You refuse to see the evils of the income taxes.

 

[mistaken1]

The ability for a business to choose deferment does not mean that they cannot continue to pay normally.
If a business can afford the taxes now they can continue paying them to the government or to their own tax kitty to pay later.
If a business cannot afford to pay the tax now deferring it to the future is not really gonna help them unless it puts pressure on the government to offer forgiveness at that future date.

If Trump is elected and Republicans control congress they could forgive the debt, if democarps take over they will be the bad guys demanding the lump sum tax payment ... or they have to forgive the debt.

 

[Cacheman]

Last year nearly 80% of taxpayers received a refund averaging over $2800 from the treasury so you've likely already paid in enough to cover any amount owed and for those on the lower income side the EIC credit (for those that qualify) would be smaller but still plenty to cover it.

The outrage I see coming is from the approximate 40-45% (I just looked this up) receiving Unemployment and didn't have their taxes taken out, with the extra $600/wk many have never had this much taxable income and the taxes owed next year will be shocking to them to say the least.

I could see Congress forgiving some or all of the taxes due on both.

How is billing people and businesses for 6 months of payroll taxes all at once “a great thing”?

Employees could adjust their W-4 and have an additional amount of money witheld if they think they need to. Businesses file quarterly and can continue to pay the amount or both parties can simply plan ahead. An individuals irresponsibility isn't my problem so I don't care.

 

[WalknTrot]

I hope he and his advisors have spent time with small business-people on this. In my foggy, pre-functional caffeine-level brain, only real advantage I can see would maybe be to those who end up filing bankruptcy 6 months down the road...

More kicking the can. Dragging any possible recovery from this self-inflicted economic nightmare even further out into the future.

Thing is...many/most here are responsible functional adults, and have learned that the Piper needs to be paid eventually. Politicians and a whole lot of the public don't see it that way.

 

[mistaken1]

Never mind ... time to stop the feeding.

 

[SmithJ]

Last year nearly 80% of taxpayers received a refund averaging over $2800 from the treasury so you've likely already paid in enough to cover any amount owed and for those on the lower income side the EIC credit (for those that qualify) would be smaller but still plenty to cover it.

The outrage I see coming is from the approximate 40-45% (I just looked this up) receiving Unemployment and didn't have their taxes taken out, with the extra $600/wk many have never had this much taxable income and the taxes owed next year will be shocking to them to say the least.

I could see Congress forgiving some or all of the taxes due on both.


Employees could adjust their W-4 and have an additional amount of money witheld if they think they need to. Businesses file quarterly and can continue to pay the amount or both parties can simply plan ahead. An individuals irresponsibility isn't my problem so I don't care.

So how is that “a great thing”, if there’s no benefit?

 

[SmithJ]

I did answer you. You refuse to see the evils of the income taxes.

You did not answer. The question is, how is this “a great thing”? It offers no benefit and increases complexity and cost.

 

[Cacheman]

So how is that “a great thing”, if there’s no benefit?

A large majority of people would not have to send in a payment next year and will just see a smaller refund but the employee will have an additional 7.65% in their take home now to spend.

 

[West]

You did not answer. The question is, how is this “a great thing”? It offers no benefit and increases complexpity and cost.

Tell me how it increases cost?

Does the unpaid tax collectors have compliance trees that grow monies to pay CPAs their normal cost to currently pay and collect FICA taxes?

Someone has to pay.

Do you think employers do not crunch the numbers on all their payroll liabilities including compliance? And that factors into the total payroll, IE how many jobs there is. And how much to pay employees.

Payroll liabilities is the major reasons we have flat wages across the USA. Fact!

You like to obfuscate much?

Keep mudding the low informed they don't and can't do the math nowadays everyone is owed something for just being a US citizen.

Right? Pay your FICA bitches!

 

[SmithJ]

A large majority of people would not have to send in a payment next year and will just see a smaller refund but the employee will have an additional 7.65% in their take home now to spend.

Assuming that the payback is handled this way, If people are getting large refunds they could have already accomplished this by adjusting their withholding. Smoke and mirrors is hardly “a great thing”

 

[SmithJ]

Tell me how it increases cost?

Does the unpaid tax collectors have compliance trees that grow monies to pay CPAs their normal cost to currently pay and collect FICA taxes?

Someone has to pay.

Do you think employers do not crunch the numbers on all their payroll liabilities including compliance? And that factors into the total payroll, IE how many jobs their is.

You like to obfuscate much?

Keep mudding the low informed they don't and can't do the math nowadays everyone is owed something for just being a US citizen.

Right? Pay your FICA bitches!

LOL, that rant doesn’t even make sense. I can see that your post was just a reflex “Trump said it, so it’s great”.

Whatever, this begins to bore me. No matter, his whole proposal probably won’t even happen.

 

[West]

LOL, that rant doesn’t even make sense. I can see that your post was just a reflex “Trump said it, so it’s great”.

Whatever, this begins to bore me. No matter, his whole proposal probably won’t even happen.

Granted, if you have never ran a payroll it doesn't make sense. Especially if math is not your strong suit.

 

[raven]

there are people who love to pay taxes
In 2019, the government collected $1.24 trillion. this year they have already borrowed over 3 trillion.
Not sure why they even need taxes. If they can borrow all they want, they should just do that.

 

[TorahTips]

Not clear to me at this point , does he want to defer them? or eliminate them?

I heard defer. Bad idea. That means it must be paid back at some point in the future UNLESS congress decides to forgive it.

 

[SmithJ]

there are people who love to pay taxes
In 2019, the government collected $1.24 trillion. this year they have already borrowed over 3 trillion.
Not sure why they even need taxes. If they can borrow all they want, they should just do that.

Thing is, none of this is about not paying taxes. It’s about letting it build up and paying more at one time.

 

[CaryC]

Just a thought:

Initially I'm thinking bad idea because people will have to come up with lump sum income tax payment come Jan 1.

However.......

Those that are back to work, and are making say 1000.00 a week yes they are being taxed on that. But when the end of the year comes they may actually be in a lower tax bracket, due to being in a shutdown for several months.

So doing a deferral now, gives folks money now, and then when the bill comes due being in a lower tax bracket, due to loss of income for several months, there won't be as much to pay in then. ?????

Not saying that it would work for everyone.

 

[SmithJ]

Granted, if you have never ran a payroll it doesn't make sense. Especially if math is not your strong suit.

LOL, been paying a payroll for more than 30 years and still am. And I can guarantee you that if this becomes reality every one of my employees will go “meh, that does nothing for me since I have to pay it later” rather than “wow that’s a great thing”.

Because, math........

 

[TerryK]

Face it. He's doing what the uniparty had always done. Kicking the can down the road for someone else to take care off if he's not here.
In this case he's kicking it out past the election and everyone will be forced to come up with 4 months worth of FICA payments.

OR at that time, Congress and the Pres will just cancel the debt and your social security system due to go bust in 2035 will go bust a little sooner and benefits will be reduced sooner to prevent that. No matter what, SS benefits will be reduced prior to 2035. However if this quarterly payment in cancelled SS will be cut sooner and more. Talk in the gov is to start reducing paid out benefits after either this or more likely the next election, to keep the fund solvent.

In the first case he's kicking the can down the road until after the election where it might not affect him. In the second case he's kicking the can down the road until he and most of congress are dead.

Sad, but we always get the government we deserve.
The government no matter who's in charge always seems to be a piece of shit. That's because the majority of American people are weak, no morals or principles, pieces of shit

I'll be fine even with no SS, but many here absolutely need their monthly SS check to live.

 

[raven]

Thing is, none of this is about not paying taxes. It’s about letting it build up and paying more at one time.

so, you can't manage your money and therefore no one can manage their money.
and no one can write the check to pay their taxes so the government demands to be paid first before you can receive a dime.
because most taxpayers are incompetent retards then everyone is treated as an incompetent retard
oh I understand . . .

 

[TorahTips]

How does this "plug in" to the real world? This means that the HR department in every company is going to need to make adjustments on every employee's payroll status. It's not that cut and dried. Some people have extra taken out of their checks some have other adjustments. It is unlikely that they are using software that will allow them to simply shut off payroll taxes as an option all at one flip of the switch.

Then there's the figuring the roll back that he was talking about -- back paying for the previous month, Who's going to do all that math for every employee? There are some small companies that figure this stuff with a calculator!!

And, when it's all over then they need to roll back to where it was at the beginning.

Am I missing something?

 

[raven]

Thing is, none of this is about not paying taxes. It’s about letting it build up and paying more at one time.

like I said "there are people that love to pay taxes"

 

[West]

LOL, been paying a payroll for more than 30 years and still am. And I can guarantee you that if this becomes reality every one of my employees will go “meh, that does nothing for me since I have to pay it later” rather than “wow that’s a great thing”.

Because, math........

If that's the case then, why don't you continue doing the same deductions ,(on your half,) and put those monies in a separate account, then pay the piper when it comes due? You might bank some pennies in interest.

Your right your employees will go "meh", but they will see a extra 7.5% in their checks, of course they will probably blame you when the piper is due. But you could educate them. Even suggest them to buy PMs, with the 7.5% they see in their checks.

LOL.