Trump to seek payroll tax relief to help calm financial markets

[turbinetree]

Source: Market Watch

Published: March 9, 2020 at 6:56 p.m. ET
By Associated Press
Trump says administration wants ‘very substantial relief,’ will ask Senate on Tuesday

WASHINGTON — President Donald Trump said Monday his administration will ask Congress to pass payroll tax relief, as he looks to calm financial markets’ fears over the impact of the coronavirus epidemic.

Trump told reporters that the administration was seeking “very substantial relief.” Treasury Secretary Steve Mnuchin and Larry Kudlow, the director of the national economic council, were expected to make the request of Senate Republicans on Tuesday afternoon.

Earlier, a public health and economic maelstrom brought on by the coronavirus swirled around President Donald Trump and drew closer to him personally Monday as several of his congressional confidants placed themselves in quarantine, including one who traveled with him on Air Force One.

While intent on projecting calm, Trump lashed out about the plunging stock market and convened a meeting of his top economic advisers to address what to do about it. Meanwhile the number of Republican lawmakers who announced they were isolating themselves because of possible exposure to the virus grew to five.

Read more: https://www.marketwatch.com/story/trump-to-seek-payroll-tax-relief-to-help-calm-financial-markets-2020-03-09?mod=home-page

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-snip-

Payroll tax relief, how about a relief from mortgage payments, or renters payments for the middle class and the poor....................

[dhol82]

1. Doesn't payroll tax affect SS? Correct me if I'm wrong.

Not really sure about it.

[Steelrolled]

4. Yes

Payroll tax commonly means FICA which means taxes for Social Security (and maybe Medicare)

Edit to add: And to be clear "payroll taxes" are not taken out of Soc Sec benefits. However, if you have other income, up to 80% of Soc Sec benefits are subject to federal income tax.

[dhol82]

6. Then does that not mean that there will be fewer payments into the fund?

If it continues for any length of time SS goes down sooner.
Does this constitute an attack on the SS system?

[Bernardo de La Paz]

11. Watch T-Rs try to turn it into taxpayer paying corporations for their part of FICA. . . .nt

[Steelrolled]

15. I don't think a short term tax holiday will have a big effect on the viablity

of SS long-term. So I would not call it an attack. The same thing was done by Pres. Obama during the 2008-2009 recession.

[dhol82]

16. Ok. Thanks.

[dflprincess]

94. Obama had a provision when he did this that any

shortfalls in the SS trust fund woukd be made up by payments from the General Revenue. I doubt Trump will do that.

[DrToast]

20. Nah

It’s just an easy and quick way to get extra money to consumers, but it doesn’t actually hurt the social security fund.

[DENVERPOPS]

29. Oh yea Bigtime...........

Another Wolf in a sheep skin........

Trump's crowd is so stupid they will go for it immediately.........

Republicans don't miss ANY opportunity to scam the taxpayers in the middle and lower classes.......just like when they lowered the AMOUNT WITHHELD from everyone's paychecks and didn't bother to tell them that they didn't change the RATE and that money would be due by the employees on the next April 15th..........

[dflprincess]

51. Coming from this crowd I would take it as an attack.

It might have worked when Obama did it but these clowns will find a way to turn it against us.

[dhol82]

75. That's what I am worried about.

[Steelrolled]

2. I believe FICA

is one tax affects everyone starting at the first dollar earned, and tops out at a wage of about $130000.

[TexasBushwhacker]

31. Yes, and it helps the people who make the most

and businesses that pay the employer's portion the most. Someone who makes $10 an hour pays 76 cents an hour in FICA. So does their employer, so if they decide to cut it 20 cents an hour, a person making $10 an hour will pocket a whopping $8 a week more. But a company that has a $1 Million payroll per week (assuming everyone makes $130K or less) pockets $20K and it's not going to trickle down.

[Steelrolled]

38. The previous payroll tax holiday

which actually was in 2011 (not 2008-2009 as I thought) did not reduce the employers contribution.

[ProfessorGAC]

70. The Medicare Portion Isn't Capped There

As one who hit the SS cap for around 25 years, I can assure you that the Medicare piece is still withheld.
If there's a cap on Medicare, it's well above the SS cap, because I never maxed out on it, but did on SS.

[cstanleytech]

3. " how about a relief from mortgage payments, or renters payments" A 3 month moratorium on mortgage

payments for homeowners with other only one home (while allowing the holders of said mortgages to use them to offset their taxes) valued up to say 350k would actually help millions of people.

[Rebl2]

24. Or

How about seniors on fixed income?

[cstanleytech]

28. Assuming they have mortgages under that 350k they would be covered.

Now as for those on that have low incomes like the disabled and elderly that rent I could see an extra amount being sent their way say of 5k which the states and any assistance programs are forbidden to count as income.
The working poor though like those earning under 35k for single and 55k for a couple that rent should get extra money back from their irs returns of say 3k to 7k extra and again the states and any assistance programs would be forbidden from counting as income.
Doing all that would help stimulate the economy more than any tax break to the corporations or wealthy ever has.

[SergeStorms]

45. We catch COVID-19 and die!

It's win-win for the Trump administration! Of course a great deal of his base comes from old morons watching FOX, so maybe he'd better be careful with that.

[SWBTATTReg]

5. Calm financial markets? There's one thing that will work that no one's suggested (or maybe they...

did), why doesn't rump just flat out shut the f**k up? Why doesn't he put the damn cell phone away and stop texting? Why doesn't he just flat out shut up?

[Bernardo de La Paz]

12. tRump resigning might actually calm the markets. Another alternative. . . . . nt

[SWBTATTReg]

13. Yes, but do you really think he'll do this? Perhaps if faced w/ an ultimatum to do so, by his...

repug buddies but even then I don't think he'll listen to anyone.

[Bernardo de La Paz]

7. How about paid sick leave requirement? Cities with that have fewer flu deaths. . . . nt

[pecosbob]

8. The people who pay taxes aren't the one's panicking over the market drop

It's the people that don't pay taxes...

[thecrow]

64. I'm not rich. I am retired.

I have been building my investments for the last
25 years so I *could* retire in peace . Not luxury.
Before that I didn’t make enough to get an IRA.
I knew SS wasn’t going to be enough.
I am too old to build my IRA back. What the hell is going
to happen tomorrow?
Can’t catch a break! 9-11. The Great Recession. Covid-19.
Now I suppose I have to cancel my 70th birthday party.
This is not peace. This is definitely not looking comfortable.
I am feeling robbed.

[Steelrolled]

74. We have a very long history

of the stock market *always* going up, in the long run. Some people were claiming in 2008-2010 that "this time it is different". They were wrong, and anyone who said that in the past was wrong. It has always recovered and reached new highs.

Did our nation's public companies shrink by 20% compared to two weeks ago? NO.

Are banks failing and companies going bankrupt left and right? NO.

[yaesu]

9. he's also thinking about paying for sick leave, hey, all of a sudden socialism is cool again!

[Traildogbob]

10. Great economics

As the markets are crashing what better way to stabilize US with taking billions more out of US revenue at a time we will need billions to save people lives. What....is the spiraling deficit and trillions added in debt to butter the balls of billionaires with tax cuts not enough. Remember when US banks would no longer give tRump a dime and all the bankruptcies. He is taking us right down his historic path of failure. If China cuts us off, guessing Puty's money laundering bank will give us cash, for a "Favor." What was that quid something, something trump loves? Putin owns trump and GOP, may as well own America. MAGA. Winning! (Butter the Balls of Billionairs) kinda rolls off the tongue, ya think?

[bucolic_frolic]

14. Is payroll tax relief a corona virus vaccine?

No? Then it's a fail. People have money to spend but are afraid to go out in public. Fatter wallets won't help.

[Warpy]

17. Tax cuts are all they have

Try kicking Pence and Mnuchiun off your virus response team, Dumbass, and let the SG do his job.

[DENVERPOPS]

30. IT IS NOT A TAX CUT

IT'S A SHAM with a catch 22

[DrToast]

18. This is actually a good idea...

...and it will likely be part of any stimulus package. It can be implemented quickly and it actually is stimulative.

[BumRushDaShow]

25. "Stimulus" is not going to suddenly restore the severed supply chains

from our single point of failure go-to for just about everything (China) - clothing, furniture, bulk drug ingredients, appliances and electronics, table and housewares, miscellaneous parts for manufacturing, etc.

This whole thing reminds me of what happened on 9/11 when they removed every aircraft from the sky and instituted a ground stop nationwide... And by the end of that week, they had to "start the system" back up again and get stuff in the air, nestled into the organized chaos of a flight configuration that was the norm (after having thousands of planes scattered and stranded at non-originator/non-destination airports nationally and globally).

[Bernardo de La Paz]

35. Nope. They want to throw taxpayer money to relieve corporations of an SSI expense, I think. . . . nt

[DrToast]

37. You do realize you pay half of your payroll taxes, right?

[Bernardo de La Paz]

39. That's what I mean.

My guess it will be a tax holiday for some determined time. The workers will get a fatter check but a bigger 1040 tax bill.

The corporations will get the other half and the taxpayers (the workers) will get that bill too.

Either by increased deficits and interest payments or by tax rise.

[gab13by13]

67. You pay half for Social Security

and the employer pays half, unless you're self employed and then you pay it all.
Pretty sure the employee pays all of Medicare tax. Either way, someone explain to me why this won't hurt Social Security and Medicare? I saw no mention of that money being reimbursed to SS and Medicare.

[DrToast]

71. It's always been reimbursed

We’ve done payroll tax holidays before and they’ve never drained the SS/Medicare funds for the money. I can’t see why Democrat’s would allow that to change this time.

[Bengus81]

83. It's not draining it,it's just less and less going in

When their should be more and more.

[larwdem]

58. ?

What do I do with the money I can't find hand sanitizer or alcohol to buy?

[gab13by13]

68. Plain old soap is better.

[customerserviceguy]

59. If a person

works in the hospitality industry, and they're laid off because people are afraid to travel, then they're not getting a paycheck to cut taxes on.

Seems like this is a benefit to those lucky enough to remain employed, but does diddly-squat for the people who will really be hurting.

[DrToast]

61. It's not the only thing that's going to happen

[Greywing]

19. Well said turbinetree ...

payroll tax relief does absolutely nothing to help the average worker in any way, shape or form. It only helps the corporations AGAIN!

[turbinetree]

93. Wado---------------thank you

Yepper spot on........................nothing but more bait and switch BS.......................

November 3 2020 and January 3 20121 cannot get here fast enough....................

[alwaysinasnit]

21. Payroll tax relief only means that you will have less money available to credit against taxes owed

for tax year 2020. It doesn't mean your tax rates will be reduced. Jeez, how stupid do these MF'ers think we are?

[Dixc]

27. that's it!

was wondering if anyone would see what this fake tax cut means and would do....

[Steelrolled]

40. No, it has nothing to do about federal income tax. It is a tax

decrease and will result in a small (couple percent) increase in take home pay. This is what President Obama did in 2011.

[onenote]

43. I don't think that's how it works. It didn't work that way when Obama cut payroll taxes

[blakstoneranger]

22. DON'T FORGET---HE LIES--HE IS A LIAR!!!

I'll take a wait and see approach.

[greenjar_01]

23. Disaster capitalism plan to eliminate Social Security

This is textbook disaster capitalism: use the crisis to cut the payroll tax which leads to ending Social Security.

Despicable assholes. Don't let them do it, Dems.

[DENVERPOPS]

32. Thank you, you nailed it precisely

[liberalmuse]

26. So we will end up paying taxes at tax time next year.

He's played this game before and frankly, he can stuff it.

[DENVERPOPS]

33. Agreed ms

but also #23

They should name these Republican clowns as members of a club called: Dewey Fuckm and Howe

Truthfully, they are beginning to think of themselves as Kings and Queens, and make the rest of us as serfs and peasants.......

[Bernardo de La Paz]

34. tRump arranging deck chairs on Titanic after he was the iceberg. . . . . nt

[CentralMass]

36. This will furthur hurt SS

[onenote]

44. Not appreciably. Just as the Obama payroll tax cut didn't make a dent in SS.

[DrToast]

46. It won't at all

The funds are reimbursed. It’s just a tax cut, but via the payroll taxes because it’s the fastest and easiest way to get people money.

[CentralMass]

57. From August. Social Security is already in trouble -- and a payroll-tax cut might only make it worse

https://www.marketwatch.com/story/social-security-is-already-in-trouble-a-payroll-tax-cut-would-only-worsen-it-2019-08-20
"The Obama administration approved a payroll-tax holiday in 2011 and 2012 in an attempt to buttress an economy climbing out of the financial crisis. The cut was 2% for two years, and would have cost the equivalent of $300 billion today to Social Security. The general budget reimbursed the program for its losses, but that reimbursement added to the nation’s debt."

"If the Trump administration were to adopt the same policy — a 2% cut for two years — Social Security’s expected 75-year shortfall would expand by 3% in the next 75 years. The shortfall for the 2020-21 fiscal year, however, would triple, Goldwein noted.

“A big risk associated with a payroll-tax holiday like this is [that] you put it in effect and then it’s hard to unwind,” Goldwein said."

"Americans wouldn’t feel much of a difference immediately, Goldwein said. The trust funds are expected to run out of money in the next 16 years, but this temporary tax holiday could advance that date by a few months or even years depending on numerous undisclosed factors.

“If you took 2% from that, benefits would just automatically get cut eventually,” said Nancy Altman, president of Social Security Works, an organization dedicated to maintaining and expanding Social Security. Having the general budget reimburse the program would avoid this outcome, but that would ramp up the deficit, she added.

Such an approach could have a long-lasting effect on the program and its beneficiaries. Although the Obama administration ended the payroll-tax cut after two years, there were proposals to keep extending it year after year. Continuing a tax holiday permanently would increase the Social Security shortfall by 70%, Goldwein said.

“That’s the biggest risk,” he said. “You [intend] it to be temporary, and it becomes permanent, and in that case it’s extremely costly.”

[CentralMass]

60. It is time to stop using tax cuts as a cure for the economic ills of the country.

Payroll tax cuts should not be used as stimulus package. They should be off the table. Assuming the cuts are to reimbursed they are just and unfunded cut adding to a budget deficit that is over $ 1 trillon already.
SS is not a slush fund.

[maxrandb]

41. WTF am I going to do with that? Put it under my mattress?

I can't even find toilet paper at the store. What the fuck am I buying?

Going to a crowded movie theater?

Go to a concert with 20,000 of my friends?

Take a cruise?

Go to a crowded restaurant with staff coughing in the food?

Seriously, WTF is this going to solve?

[greenjar_01]

47. Yes, I'm mystified by the attempt to boost spending in a pandemic

Are we all meant to be out at restaurants?

If people are unable to work and don't have paid time off, how in fuck is a payroll tax holiday meant to solve that problem?

This is a distinctly different scenario than the Obama payroll tax issue, where it really was a question of greasing spending. Here, the reason people aren't spending is because they're scared to leave their house, not because they're scared they don't have money.

[Steelrolled]

49. People are quite adept at spending a little extra

money they find in their paycheck. This was the idea when President Obama did it in 2011.

[Bengus81]

84. Does Donnie DUMBFUCK realized there are RETIRED people in the US?

Uhhh...we don't have payroll taxes,just minor SS raises that are eaten up in five seconds by yet another HIKE in several Utility bills,Internet etc.

And no....low gas prices don't help because you don't drive as much. What we need is a MEANINGFUL raise in SS per month,not another phony tax cut.

[SergeStorms]

42. No, Donald.

We can't tax cut COVID-19 away. Deal with it like a real president would do!

[olddad65]

48. Why not give the wealthy corporations another 40% tax break

That the middle class can pay for. Again.

[PSPS]

50. "While intent on projecting calm, Trump lashed out...."

he gets mad and "lashes out" if he thinks something makes him "look bad"

[Doodley]

52. Proposals to contain the spread of the virus would calm markets, not bribes to help re-elect him.

[C_U_L8R]

53. How about bolstering Obamacare

And rehiring all the scientists you canned?!!!!

[VarryOn]

54. I'd rather see income tax reductions over the payroll taxes...

But, I'll take what I can get!

[PSPS]

55. Yes, corona is coming for us because we have "un-calm" markets. It's mad!

At first, they thought it was mad and coming for us because our interest rates were too high. Maybe this new idea will make it all go away!

[radical noodle]

56. Seems like it would be better to

do something with unemployment. For example, they could give money to states to allow sick workers to collect unemployment and without any waiting period. As it is right now, I don't know of any state that gives unemployment to workers who are unemployed because they're sick.

They could do a lot of things that would be more helpful because it doesn't help to have a payroll tax reduction if one isn't working. Trump is too stupid to know that, though.

[stopbush]

62. How does cutting payroll taxes help the retired, the unemployed

and those who become unemployed due to repercussions from the virus?

[truthisfreedom]

63. Buying votes. That's all he's doing here. He should be warning people, working on expanding hospital

beds, building emergency barracks to house the homeless in quarantine, building temporary hospitals like the Chinese did, anything other than this. If he's looking for financial relief, suggest a two month delay on mortgage, rent, credit card bills, loans, everything that consumers need to pay with their paychecks. Go to congress with that idea. Not some bullshit tax relief.

[mr_lebowski]

65. I don't think the government can wave a wand and make private businesses

Take a hit like you propose. It would be in court so fast ... and then the government would lose.

Maybe using emergency powers he could do some of that ... do we really want Trump bringing those to bear?

The only similar thing gov't could do is pay people's mortgages, rent, credit card bills, etc. And that would be an incredibly complex endeavor.

Could do something like, along w/payroll tax cut, reduce taxes on SS payout, reduce all Medicare premiums, and reducing all gov't fees for everything, starting w/the Post Office and going from there.

[area51]

66. The best thing he could do at this point to calm the market,

would be to resign.
#TrumpVirus

[Denis Enko]

69. The GOP Solution to Everything

After Judgment Day, terrified Republicans will be promising Satan a tax cut if he doesn't pull them into Hell.

[Vinca]

72. The Magical Tax Cut Cure

[beachbumbob]

73. taxcuts do nothing to stop a pandemic, its an attempt to "bribe" voters AND force

democrats to DENY as it runs the deficit deeper. Democrats should not oppose but expand even further with $1000 check to every social security recipient, expend energy credits and force GOP/trump to deny.

taxcuts have nothing to do with a pandemic and market crashes

[Bengus81]

81. I agree and make any tax cut only for those making 100k or less

This is just another round of cuts for the RICH and big ass Corporations touted as "helping" during a crisis.

[beachbumbob]

82. throw in additional energy credits, college credits and the like, run the deficit UP UP UP and have

GOP say no to all of it. Turn the tables on them

[no_hypocrisy]

76. Reminds me of* after 9-11, promoting

and encouraging the Public to go shopping.

[hatrack]

77. If a Texas-sized meteor was heading for Earth, the GOP would give it a tax cut . . .

The Pavlov Congress, drooling every time Grover Norquist and Frank Luntz hit the bell.

Jesus Christ . . . .

[rampartc]

78. "payroll tax relief" defunds social security and medicare

and does nothing for people quarantined from their jobs.

for trump a "win/win"

[Chainfire]

79. My uneducated opinion

If Trump cuts payroll taxes it will be a smoke screen to cover the bail out of the losses in the markets.

Our current version of Capitalism is that the wealthy risk their wealth in the markets, if they make money great, if they lose money, the government is standing by to bail them out with everybody else's money. What a great system.....

Trump, and his party, have no desire to enact any policy that will benefit ether the poor, the working poor or the middle class. Our current political system is America of the money, by the money and for the money.

[Bengus81]

85. Trump has ALREADY been GIVEN this MONEY

He touts this is to help those that could be affected by CV and needing time off. OK fat boy,the DEMS gave you 8B when you wanted 2B.

NO...this BS is about GUTTING Social Security and Medicare to help out the STOCK MARKET.

[Blue_Tires]

86. This is just another example of

looking like you're doing something when you're doing nothing...

"how about a relief from mortgage payments, or renters payments for the middle class and the poor"

That will *NEVER* happen because then too many black and Latino folks would benefit... All of Trump's relief plans are setup to benefit "his own people" first...

[lark]

87. Payroll tax reliex is a BS response and does next to nothing - except please repug gods.

Everyone who misses work gets paid - how about that for help? How about no foreclosures for people who have been quarantined and 180 days to catch up? How about anyone quarantined gets a month of free rent, if they are renters? These are things that would substantially help reduce the financial hit from being quarantined. But not - it's got to be repug dogma and tax cuts which do nothing to help the most poor - he is freaking sickening and a menace to us and the entire world.

[Grins]

88. Aren't we supposed to "Go shopping"?

That was the Bush response...

[Grins]

89. A tax cut! The GOP cure for EVERYTHING! NM

[sdfernando]

90. This is probably the stupidest idea tangeranus has had

Nothing....NOTHING this orange lardass does is going to help.....its TOO LATE!

.....and I doubt he will get buy-in from the H.O.R....and it ain't going nowhere without them.

[LudwigPastorius]

91. Raising the budget deficit and kicking the can down the road again.

...just more shit the next Democratic administration will have to shovel us out from under.

[apnu]

92. Runs up deficits like we're in a major war, and then wants to cut revenue even more.

Yeah that's gonna work out real well Mr. "Stable Genius"

[TexasBushwhacker]

95. It would be better to just cut everyone a check like Bush did

Payroll tax cuts don't help the working poor much. Better to put a chunk of cash in people's pocket, especially with people having to take off work because of sickness or because businesses have cut back. But that doesn't mean will people will eat out more, travel, go to movies - all those different things that expose people to others' germs. No amount of stimulus with make that risk worth taking.