Trump Proposes to Cut Payroll Taxes to 0%

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 Olsen, CPA

 

 

Alan L. Olsen, CPA, Wikipedia Bio

Posted in
This Could Be the Year to Stop Itemizing Your Deductions

This Could Be the Year to Stop Itemizing Your Deductions

This Could Be the Year to Stop Itemizing Your Deductions Tax season is just about here again. That means millions of people are getting ready to gather up all their financial information for the year 2018 and file their returns. This year will be like no other, thanks to the Tax Cut and Jobs Act.   One of…

Why Are Wealthy Families Turning Their Noses on Hedge Funds?

Why Are Wealthy Families Turning Their Noses on Hedge Funds?

Why Are Wealthy Families Turning Their Noses on Hedge Funds? Many investors look to see what the wealthy are doing when it comes time to get into the stock market. After all, these investors are wealthy because they’ve played the market right. For years, many of the wealthiest investors in the country have hedged their…

These Two Phrases Are Signs of Weak Leadership

These Two Phrases Are Signs of Weak Leadership

These Two Phrases Are Signs of Weak Leadership Good leaders and bad leaders have many differences. Effective leaders tend to do things well, while ineffective leaders often don’t. However, it’s interesting to note that both kinds of leaders make mistakes. No one is perfect. What sets these two kinds of leaders apart is how they…

leadership traits

In Which Leadership Traits Do Women Rank Higher Than Men?

In Which Leadership Traits Do Women Rank Higher Than Men? Men and women are different. Neither is better than the other, and they both excel at different things. Sometimes women are better at certain things than men, and the opposite is also true. So what about when it comes to leadership? Which things do women rank higher in…