Trump push congress for a payroll tax cut
President Donal Trump on Tuesday meeting with the Senate and House Republicans discusses the possible payroll tax cut. This helps to provide a timely and effective response to the coronavirus.
Trump also said we had a mixed result in the past to boost the economy. The potential tax comes on the top of an $8.3 billion package that he signed on Tuesday. The Package aims at providing support to the state fighting this outbreak.
Trump wants to put more money into the pocketbook of workers
In 2011, a temporary payroll was implemented in the aftermath of financial crises to reduce it by 2 per cent. Now Trump wants to put money into the pocket of the workers, but some of the economists have been criticizing. By stating that whether a typical stimulus measure will work in coronavirus pandemic where many chose to stay at home. Nobody is spending at a restaurant or in movies.
Trump payroll tax cut won’t help most in need.
This benefit will be miss by the people who are retired, other family members, and who do care for children. These people were going to miss out on such benefits.
As per the data, currently, 17 million people were unemployed, and the tax cut will do nothing to help with this.
According to the researcher at the Center on Budget and Policy Priorities, direct payment made to the most who are in need and give more benefit to low-income workers and reaching those out of work.
Payroll tax cut reduces the federal income.
According to the Congressional Research Service, 2011, tax cut reduced federal tax revenue by $112 billion in its first year. It was then extended through 2012, costing an additional $115 billion.
Congress already spent $3 trillion to help rescue the economy, which is likely to lead to a historic budget deficit.