Trump Proposes to Cut Payroll Taxes to 0%
This week, President Trump pitched cutting the payroll tax to 0% for both employees and employers through the end of the year. There’s also some discussion of making the change permanent.
The intent of the cut is to stimulate the economy in the wake of the corona virus outbreak and oil price war.
What does this mean for you and me? Well, if it passes, we all get a big increase in our take home pay. The current payroll tax rate is 15.3%, however, the IRS has thankfully shifted half of that tax burden to the employer. That left each individual in the country with a 7.65% deduction from their paycheck.
Who wins under this proposal? Everyone of course, especially independent contractors and business owners as they will be affected most. If the tax is permanently removed, the federal government will have to find some other means to fund Social Security and Medicare- which, by the way, are already dangerously underfunded.
So, as enticing as this idea sounds, is a permanent reduction or elimination of the payroll tax a good idea? Whatever the answer, nobody ever complains about receiving a pay raise.
We hope you found this article about Trump Proposes to Cut Payroll Taxes to 0% helpful. If you have questions or need expert tax or family office advice that’s refreshingly objective (we never sell investments), please contact us or visit our Family office page or our website at www.GROCO.com. Unfortunately, we no longer give advice to other tax professionals gratis.
To receive our free newsletter, contact us here.
Subscribe to our YouTube Channel for more updates.
Considerately yours,
GROCO, GROCO Tax, GROCO Technology, GROCO Advisory Services, GROCO Consulting Services, GROCO Relationship Services, GROCO Consulting/Advisory Services, GROCO Family Office Wealth, and GROCO Family Office Services.
Alan L. Olsen, CPA, Wikipedia Bio
Are Republicans Reconsidering Tax Cuts for the Wealthy?
Are Republicans Reconsidering Tax Cuts for the Wealthy? While Republicans continue to promise tax cuts for everyone, most media pundits and Democrats claim that those plans will only help the wealthy. That’s an argument that will never end, but could it be possible that Republicans are changing their tune? There is growing speculation that Republicans…
Gouging the Rich With Higher Taxes is Not Working in Connecticut
Gouging the Rich With Higher Taxes is Not Working in Connecticut It’s no secret that our nation’s tax code is designed to get more from the rich than from the other working classes. Federal tax rates are higher for the wealthy, as are many states’ income tax laws. In fact, many states take direct aim…
Could the Wealthy Still Pay Obamacare Tax After Trump Plan Replacement?
Could the Wealthy Still Pay Obamacare Tax After Trump Plan Replacement? It’s now June and the fight over the nation’s healthcare bill is still ongoing. It’s not that lawmakers aren’t trying to get something done that would ultimately replace Obamacare, but as with most things in Washington, it’s a slow-moving process. The House’s first attempt…
New Health Care Plan Could Be a Huge Boost to the Wealthy
New Health Care Plan Could Be a Huge Boost to the Wealthy Out with the old and in with the new. You might say that has been the calling card of the new presidential administration since Donald Trump took office. From immigration reform to healthcare, and from tax reform to federal government budget cuts, the…