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
Eric Ball – General Partner for Impact Venture Capital
Venture capital is a tricky game to play, but Eric Ball has it down to a science with Impact Venture Capital. Since starting the firm, he has been able to assist many successful startups as they venture into the world of business and technology development. Learn how he has found success living the American Dream…
Porter Ellett – Coaches Football with One Arm
His Dream of coaching football caused him to take a much different path in life than he originally intended to take. In this episode of American Dreams, Porter Ellett shares his story of how he came to coach the Kansas City Chiefs. Listen to his inspirational story as he shares how individuals influenced the path…
Ukraine Citizens Pay Zero Tax
The Ukraine government has declared that no Russian tanks or military equipment captured by citizens need to be declared as income for tax purposes. Most countries have a long historical relationship between war and taxing its citizens. War & taxes in the US Here in the US, individual federal income-taxes were originally only required when…
Robert Mixon – Founder of Level Five Associates
After years of serving in the Military as a general, Robert Mixon teaches some of the valuable Leadership lessons which he learned. Among these leadership principles are Trust and Empowerment; Listening; balancing personal and professional life; and Taking charge. Listen to Robert Mixon as He Elaborates on how he got to become a U.S. General,…