President Trump's New Executive Order Could Gut Social Security
As Americans cope with a recession and record levels of unemployment, lawmakers in D.C. have been engaged in negotiation for weeks about how to provide ongoing financial relief. And while there have been some points of agreement -- particularly about the need for another coronavirus stimulus check -- they've been unable to find consensus.
In response to the standstill, President Trump has now signed executive orders that would defer payroll taxes for some Americans, as well as expand unemployment benefits by providing an extra $400 per week in aid for the jobless. But while the administration is touting the payroll tax deferral as a tax cut that would put more money in the pocket of Americans, that's not necessarily the case because the deferred taxes have to be paid eventually unless Congress forgives them so some employers may continue to withhold the money from workers' paychecks to help them avoid a huge tax bill.
While the President will likely push Congress to forgive the deferred payroll taxes and has ordered the Treasury secretary to look at all alternatives for forgiveness, there's a big problem. A payroll tax cut is definitely not on the table in the stimulus negotiations. In fact, while the president has long pushed the idea, there's bipartisan opposition on Capitol Hill.
Source Fool.com
