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
What Should You Do if You Can’t Pay Your Tax Bill on Time?
What Should You Do if You Can’t Pay Your Tax Bill on Time? The 2019 tax season is in full swing and it’s already come with several changes and surprises. One of the biggest surprises is the number of taxpayers that are either getting a much smaller refund, or not getting a refund period. However,…
Could This Year’s Tax Refund Be Bigger Than Last Year’s?
Could This Year’s Tax Refund Be Bigger Than Last Year’s? If you’ve heard anything about the 2019 tax season, it’s probably that refund amounts are way down. That storyline has made a lot of news. And opponents of the Tax Cut and Jobs Act (TCJA) have definitely used it as “proof” that the changes were…
Could These Tax Deductions Save You Big?
Could These Tax Deductions Save You Big? It’s tax time. Of course, you know that already, unless you’ve been hiding under a rock for the last several weeks. Tax time means refund time, right? Not for everyone, but in most cases, yes. But so far this year, refunds are down and many taxpayers have been…
Top Ways to Cut Taxes in Retirement
Top Ways to Cut Taxes in Retirement When you think of retirement you tend to think of pleasant things. Perhaps you dream about living out your days on a sunny beach or sailing around the world in your luxurious yacht. Maybe you plan to travel the world or maybe you just want to relax and…