CiberNauta asked in Beauty & StyleMakeup · 1 month ago

Do you think Trump's proposal of a pay tax cut is a good idea?

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Like any relief effort or tax cut, there will be winners and losers if Trump gets his way. But, who are the biggest benefactors of a payroll tax cut? And who is likely to get the shaft?

Winners: Self-Employed And Businesses

Self-employed people are positioned to benefit from a payroll tax cut on both sides of the spectrum.

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For example, in a blog post earlier this year, Amazon AMZN -1.8% said they paid upwards of $2.4 billion in payroll taxes in 2019. A payroll tax cut would result in huge savings for employers like Amazon.

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Losers:

The Unemployed

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Without employment, they aren’t currently paying payroll taxes anyway.

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Medicare

Finally, Social Security and Medicare are also losers in this scheme. Both programs have their own financial problems already, so stopping payments into each program only stands to exacerbate their various issues.

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If payroll taxes come to a halt this year — even temporarily — it’s easy to see how quickly this problem could get worse.

The Bottom Line

Is a payroll tax cut a good idea? While it might seem like a smart way to help employers and employees save money, the fact remains that those who will benefit the most are the least likely to need any help.

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Robert Farrington

The Winners And Losers Of Trump’s Payroll Tax Cut Proposal

URL:https://www.forbes.com/sites/isabeltogoh/2020/08/0...

Update:

Sorry. I could not copy the whole article here due to the space allowed. However you can check the entire text in the link from Forbes.

3 Answers

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  • fcas80
    Lv 7
    1 month ago

    If the Social Security payroll tax is cut, this benefits current workers.  It gives no benefit to unemployed workers.  It weakens the pot available to current and future Social Security recipients.

    It is not clear whether such a cut applies to businesses, but my guess is that it would, so they too benefit.

    Not sure why this is in the makeup thread, but it's always a good day for lipstick.

  • Anonymous
    1 month ago

    Better a Tax Cut, then the Democrats taking the Taxes to spend on Pork-Barrel, and lining their pockets via some hare-brained project like paying Illegal Aliens for sneaking in.

  • Rick
    Lv 7
    1 month ago

    Yes it is a good Idea, when the money being taken out of peoples pay becomes real the people will demand tax reform.

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