President Trump's Payroll Tax Break Won't Benefit These 3 Groups – Whereas a Second Stimulus Check Would
Fueled by a lack of progress on lawmakers' part to come to terms on a second COVID-19 relief bill, President Trump signed an executive order in August calling for a payroll tax deferral beginning Sept. 1 through the end of 2020. During this time, some workers won't have to pay the 6.2% Social Security tax they'd normally be liable for on their first $137,700 of earnings.
Now to be clear, this isn't a permanent tax break, even though the president would clearly like it to be. In fact, Trump has already stated that if re-elected, he'll seek to forgive all deferred payroll taxes from the latter part of 2020 (though whether he'll have the authority to do so is still up for debate). As such, the aforementioned tax break may very well end up serving as merely a temporary paycheck boost, all the while leaving workers on the hook for a higher tax bill come 2021.
In fact, one big problem with the president's payroll tax break is that it ultimately does not take the place of a second stimulus check. In fact, here are three specific groups of people who won't benefit from deferred payroll taxes, but who would otherwise stand to collect a direct stimulus payment.
Source Fool.com
