President Trump signed a directive for a ‘Payroll tax holiday,’ to Americans earning less than $100,000 per year. The memorandum gives employers the right to defer all payroll tax. He also claims he will permanently ‘terminate’ the tax if re-elected.
Excerpts from official White House transcript:
Remarks by President Trump in Press Briefing
Issued on: August 8, 2020
Trump National Golf Club Bedminster, New Jersey
4:21 P.M. EDT
“…Therefore, I’m taking executive action. We’ve had it. And we’re going to save American jobs and provide relief to the American workers, and I’ll be signing these bills in a very short period of time.
First one is on providing a payroll tax holiday to Americans earning less than $100,000 per year. In a few moments, I will sign a directive, instructing the Treasury Department to allow employers to defer payment of the employee portion of certain payroll taxes from September 1st. And we’re actually going to be making that; we just got the word. We’re just getting some word from a lot of people. We didn’t think we’d have to do this because we thought the Democrats would be reasonable, but they’ve been not only unreasonable, they’ve been ridiculous.
So we’re going to make that August 1st, most likely. It’ll be August 1st. We’ll let you know the exact date, but we’re looking like August 1st. So it’d be August 1st through the end of 2020. This will mean bigger paychecks for working families, as we race to produce a vaccine and eradicate the China virus once and for all.
If I’m victorious on November 3rd, I plan to forgive these taxes and make permanent cuts to the payroll tax. So I’m going to make them all permanent.
Now, Joe Biden and the Democrats may not want that. They don’t want that because they’re adding $3 trillion in taxes. So they’ll have the option of raising everybody’s taxes and taking this away.
But if I win, I may extend and terminate. In other words, I’ll extend it beyond the end of the year and terminate the tax. And so, we’ll see what happens. Biden probably won’t be doing that; you’ll have to ask him. I don’t think he knows what he’s doing.
AUDIENCE: (Laughter and applause.)
THE PRESIDENT: Second, I’m signing an executive order directing the Department of Housing and Urban Development, HHS, and CDC to make sure renters and homeowners can stay in their homes.
“…And this is deferral payroll tax obligations. So this is your payroll tax obligations, which we’re going to end up terminating eventually, right?
(The memorandum is signed.)
Q Sir, the payroll tax cut was opposed by both parties on Capitol Hill. Can you give your rationale as to why you think that’s important, particularly since it doesn’t help Americans who (inaudible)?
THE PRESIDENT: Yeah. Okay. It helps people greatly. It helps our country get back. And anybody that would say anything different, I think, is very foolish. Everybody wanted it. By the way, the Democrats want it. The Republicans want it. They just couldn’t get it — they just couldn’t come to an agreement, but everybody wants it.
And the very important thing is the people want it, and the people need it, actually.