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
How to Stop Cyber Criminals From Stealing Your Info
How to Stop Cyber Criminals From Stealing Your Info Tax season has come and gone, and we won’t have to worry about the next one for several months. But just because you’re taking a rest from taxes, it doesn’t mean potential cyber criminals are too. Cyber criminal activity is on the rise and these scammers…
Gates Not Opposed to Wealth Tax Despite Implications
There has been much chatter lately regarding a wealth tax. At least two of the leading democratic presidential candidates have discussed it, even though most wealthy Americans would likely oppose this tax. After all, why should they be punished just because they make more money? But not all wealthy taxpayers oppose a wealth tax. In…
Positive Leadership Leads to Positive Behaviors
Positive leadership is of vital importance in any organization. However, we often focus more on the negative than the positive behaviors of others. Have you ever noticed that giving a child negative reinforcement usually results in continued negative behavior? You may get the desired result in that moment, but inevitably the child returns to the…
Mike Kwatinetz, Founding Partner at Azure Capital
Interview Transcript of Mike Kwatinetz, Founding Partner at Azure Capital: Alan Olsen: For the listeners, can you give background on your expertise and business? Mike Kwantinetz: I’m one of the weird people in the world. So I started off and have a PhD in mathematical modeling. And then I also have an MBA in finance…