(UnitedVoice.com) – For months, President Trump has been asking Congress to give American workers a payroll tax holiday. Unfortunately, the Democratic-led House has blocked the idea at every turn.
If enacted, the payroll tax holiday would provide an immediate 7.5% increase to worker’s paychecks. Not to mention, it would save businesses untold sums of money on accounting. Now, one of Trump’s advisers says the president can do it without Congress if they won’t work with him. However, there’s a catch.
On Monday, economist Stephen Moore said Trump could do an “end run” around Congress. The president can use 7508A of the tax code to order the Internal Revenue Service (IRS) to delay tax payments for people affected by the federal tax emergency. Those payments can be postponed for one year — that’s the catch.
Without legislation from Congress, payroll taxes can be delayed but not forgiven.
That would make an executive order by the president a temporary fix. If Trump moved forward with a decision and workers took advantage of it, they would need to pay the taxes at some point in the future.
So, yes, the president can order the IRS to suspend tax collection. No, it does not give a free pass to those who might take advantage of a program. Therefore, it’s not a payroll tax holiday. It’s a payroll tax delay.
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