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 Millennials Changing How We See Leadership?
Are Millennials Changing How We See Leadership? Within just a few years from now, Millennials will actually become the largest employee demographic in the workforce. That means ready or not, Millennials are coming to an office near you. It also means they will soon be taking on more leadership roles. In fact, they have already…
Tips for Avoiding Wire Fraud in Your Next Real Estate Transaction
Tips for Avoiding Wire Fraud in Your Next Real Estate Transaction It is a buyer’s worst nightmare, and it could happen to almost anyone. The wire over a significant amount of money to an account as part of settlement on a real estate transaction. Hours or perhaps a day or two later, they realize that…
Will the IRS Stop States From Avoiding Tax Deduction Caps?
Will the IRS Stop States From Avoiding Tax Deduction Caps? By far, one of the most controversial aspects of the new Tax Cut and Jobs Act (TCJA) has been the reduction in the state and local income tax deduction. This has long been an important deduction for many people. Being able to deduct your state…
Principle Based Leadership
Principle Based Leadership Transformational Leadership Series: What is a leader? Or better, what is a leader’s role in an organization? If the answers to these questions could be culminated to one single sentence it would be: to execute the mission of the organization in the most efficient, effective, and ethical manner, at the highest level.…