Results 1 to 15 of 15

Thread: Help Me Understand Trump's Payroll Tax Cut

  1. #1

    Help Me Understand Trump's Payroll Tax Cut

    From my understanding President Trump's Executive Order will defer the Payroll Tax for Income earners making less than $100K annually (or $4,000 bi-weekly)

    Does that mean if someone earns more than $100K (or $4,000 bi-weekly) that they will not get the payroll tax deferment? Or will they get deferment up to the first $100K (annualized) and then pay payroll taxes on wages over that portion?

    I.E. Someone earns $5,000 on a bi-weekly pay check and doesn't pay payroll tax on the first $4,000 of income but they do pay payroll tax on the last $1,000 of income

    or

    Someone earns $5,000 bi-weekly and they pay payroll tax on all $5,000 just as they normally would


    I have read a couple of press releases and news articles but unfortunately no one really makes this clarification so any help interpreting the EO would be greatly appreciated.
    Please consider donating to the Mises Caucus today. We are TAKING OVER the LP.

    We have big plans including creating a program to bring libertarians like Maj Toure and Tom Woods to college campuses.

    We have several LP Mises Caucus Members who won elected office in 2020 including multiple City Council seats.

    Your recurring donation is what helps us to set these ideas into motion.

    Donate today at www.TakeHumanAction.com



  2. Remove this section of ads by registering.
  3. #2
    I don't think anyone knows details yet. Additional questions: If it's $100k for a single person, is it $200k for married filing jointly? Is it adjusted gross income? Is it income tax only, or does it include Social Security and Medicare? If a person is self-employed, does it include the employers portion of the payroll tax?
    War is in fact the true nurse of executive aggrandizement. - James Madison

  4. #3
    Quote Originally Posted by Daveforliberty View Post
    I don't think anyone knows details yet. Additional questions: If it's $100k for a single person, is it $200k for married filing jointly? Is it adjusted gross income? Is it income tax only, or does it include Social Security and Medicare? If a person is self-employed, does it include the employers portion of the payroll tax?
    I think it does mean to not collect social security and medicaid as well because he wanted that in his stimulus bill but the senate GOP establishment opposed it

  5. #4
    Quote Originally Posted by trey4sports View Post
    From my understanding President Trump's Executive Order will defer the Payroll Tax for Income earners making less than $100K annually (or $4,000 bi-weekly)

    Does that mean if someone earns more than $100K (or $4,000 bi-weekly) that they will not get the payroll tax deferment? Or will they get deferment up to the first $100K (annualized) and then pay payroll taxes on wages over that portion?

    I.E. Someone earns $5,000 on a bi-weekly pay check and doesn't pay payroll tax on the first $4,000 of income but they do pay payroll tax on the last $1,000 of income

    or

    Someone earns $5,000 bi-weekly and they pay payroll tax on all $5,000 just as they normally would


    I have read a couple of press releases and news articles but unfortunately no one really makes this clarification so any help interpreting the EO would be greatly appreciated.
    Good question. First question I had too. Didn't look into it though.
    "Foreign aid is taking money from the poor people of a rich country, and giving it to the rich people of a poor country." - Ron Paul
    "Beware the Military-Industrial-Financial-Corporate-Internet-Media-Government Complex." - B4L update of General Dwight D. Eisenhower
    "Debt is the drug, Wall St. Banksters are the dealers, and politicians are the addicts." - B4L
    "Totally free immigration? I've never taken that position. I believe in national sovereignty." - Ron Paul

    Proponent of real science.
    The views and opinions expressed here are solely my own, and do not represent this forum or any other entities or persons.

  6. #5
    I see where I misunderstood the payroll tax cut completely. Only the 7.45% for Social Security and Medicare. Only for single earners who make less than $4000 bi-weekly.

    But, what about the self-employed? And does being married matter at all?
    War is in fact the true nurse of executive aggrandizement. - James Madison

  7. #6
    I think Payroll tax is a tax that business pays for having a payroll. I think it is supposed to be a break for business.

  8. #7
    From what I've gathered, most businesses that collect and remit those taxes are generally going to continue to do it, as the complications/questions that the OP brings up are just too unclear to risk doing something incorrectly, at least until there is much more clarity.

    And stop calling it a tax cut FFS. It's a tax deferral, not a cut. You aren't on the hook for repayment of a tax cut and only Congress can make changes to title 26. The statutory authority referenced in the EO is only for a tax deferral in an emergency. As of now, it will have to be paid at some point.
    "Let it not be said that we did nothing."-Ron Paul

    "We have set them on the hobby-horse of an idea about the absorption of individuality by the symbolic unit of COLLECTIVISM. They have never yet and they never will have the sense to reflect that this hobby-horse is a manifest violation of the most important law of nature, which has established from the very creation of the world one unit unlike another and precisely for the purpose of instituting individuality."- A Quote From Some Old Book

  9. #8
    Maybe just do away with income tax instead?

    Don't need a weather man to know which way the wind blows



  10. Remove this section of ads by registering.
  11. #9
    Quote Originally Posted by shakey1 View Post
    Maybe just do away with income tax instead?
    Sorry, thats not popular around here anymore, at least not through executive order. Anti-statists much prefer the state legislatively tell them that they can keep more of their own money, because its more legitimate.
    THE SQUAD of RPF
    1. enhanced_deficit - Paid Troll / John Bolton book promoter
    2. Devil21 - LARPing Wizard, fake magical script reader
    3. Firestarter - Tax Troll; anti-tax = "criminal behavior"
    4. TheCount - Comet Pizza Pedo Denier <-- sick

    @Ehanced_Deficit's real agenda on RPF =troll:

    Who spends this much time copy/pasting the same recycled links, photos/talking points.

    7 yrs/25k posts later RPF'ers still respond to this troll

  12. #10
    Quote Originally Posted by eleganz View Post
    Sorry, thats not popular around here anymore, at least not through executive order. Anti-statists much prefer the state legislatively tell them that they can keep more of their own money, because its more legitimate.
    Enforcing unconstitutional laws is more constitutional than not enforcing them, didn't you know?
    Never attempt to teach a pig to sing; it wastes your time and annoys the pig.

    Robert Heinlein

    Give a man an inch and right away he thinks he's a ruler

    Groucho Marx

    I love mankind…it’s people I can’t stand.

    Linus, from the Peanuts comic

    You cannot have liberty without morality and morality without faith

    Alexis de Torqueville

    Those who fail to learn from the past are condemned to repeat it.
    Those who learn from the past are condemned to watch everybody else repeat it

    A Zero Hedge comment

  13. #11
    I heard on the news this morning the payroll tax is deferred. If Trump wins reelection, the tax is forgiven. If Trump loses the election, people have to pay the back taxes. Did anyone else hear that? I feel like I'm being extorted with my own money.

    To be safe, folks better be saving a sum to give back to the government in the next 3-8 months. We all have an idea how quickly penalties and interest grow when you can't pay the tax bill.

  14. #12
    Quote Originally Posted by dean.engelhardt View Post
    I heard on the news this morning the payroll tax is deferred. If Trump wins reelection, the tax is forgiven. If Trump loses the election, people have to pay the back taxes. Did anyone else hear that? I feel like I'm being extorted with my own money.

    To be safe, folks better be saving a sum to give back to the government in the next 3-8 months. We all have an idea how quickly penalties and interest grow when you can't pay the tax bill.

    Extortion. Only the stupid, and profiteers, buy into it.
    “The right to life is the source of all rights—and the right to property is their only implementation. Without property rights, no other rights are possible. Since man has to sustain his life by his own effort, the man who has no right to the product of his effort has no means to sustain his life. The man who produces while others dispose of his product, is a slave.”

    An Agorist Primer

  15. #13
    Quote Originally Posted by PAF View Post
    Extortion. Only the stupid, and profiteers, buy into it.
    Buy into it? Taxes are taken by force. The IRS doesn't care if anyone buys into it. They take it. If you resist, they take it and put you in jail.

  16. #14
    Quote Originally Posted by dean.engelhardt View Post
    I heard on the news this morning the payroll tax is deferred. If Trump wins reelection, the tax is forgiven. If Trump loses the election, people have to pay the back taxes. Did anyone else hear that? I feel like I'm being extorted with my own money.

    To be safe, folks better be saving a sum to give back to the government in the next 3-8 months. We all have an idea how quickly penalties and interest grow when you can't pay the tax bill.
    Don the Con spent all of his formative years around NYC mobsters. Ya think maybe he picked up a trick or two?
    "Let it not be said that we did nothing."-Ron Paul

    "We have set them on the hobby-horse of an idea about the absorption of individuality by the symbolic unit of COLLECTIVISM. They have never yet and they never will have the sense to reflect that this hobby-horse is a manifest violation of the most important law of nature, which has established from the very creation of the world one unit unlike another and precisely for the purpose of instituting individuality."- A Quote From Some Old Book

  17. #15
    President Trump issued a new executive order on August 8 directing the Treasury Department to defer the 6.2% Social Security tax on wages for employees making less than about $100,000 a year. The suspension on collections lasts from Sept. 1 through Dec. 31.

    Unfortunately, the suspension on collections—which applies only to the employee share of payroll taxes—doesn't amount to an actual tax cut since collections could resume at any time after December 31. Moreover, once the September-December deferment period is up, employees would still be on the hook for paying their tax liability back to September 1.

    https://mises.org/wire/trumps-payrol...s-income-taxes
    The wisdom of Swordy:

    On bringing the troops home
    Quote Originally Posted by Swordsmyth View Post
    They are coming home, all the naysayers said they would never leave Syria and then they said they were going to stay in Iraq forever..... just like Trump said.

    On fighting corruption:
    Quote Originally Posted by Swordsmyth View Post
    Trump had to donate the "right way" and hang out with the "right people" in order to do business in NYC and Hollyweird and in order to investigate and expose them.
    Fascism Defined



Similar Threads

  1. Trump signs EO extending payroll tax deferment until end of of 2020
    By Anti Federalist in forum U.S. Political News
    Replies: 32
    Last Post: 11-23-2020, 03:48 PM
  2. Trump demands payroll tax cut & reduced unemployment benefits
    By Pauls' Revere in forum U.S. Political News
    Replies: 1
    Last Post: 07-19-2020, 07:03 PM
  3. Replies: 16
    Last Post: 05-02-2020, 04:18 PM
  4. Trump mulls permanent 0% payroll tax rate
    By Swordsmyth in forum U.S. Political News
    Replies: 13
    Last Post: 03-12-2020, 05:58 PM
  5. Replies: 34
    Last Post: 08-23-2019, 07:18 PM

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •