WASHINGTON — President Trump on Wednesday vowed to permanently abolish the payroll tax at the beginning of 2021 if he is re-elected in November.
“On the assumption I win, we are going to be terminating the payroll tax after the beginning of the new year,” the president said during his nightly coronavirus briefing at the White House.
But the tax, which raises approximately $100 billion a month, funds Social Security and Medicare, and the act would require support from Congress.
Trump signed a slate of executive orders over the weekend designed to invigorate the economy, including a four-month payroll tax holiday.
The move applies to workers who earned less than $104,000 in 2020 and depending on a person’s wages, could save them several hundred dollars each month.
On Sunday, Trump promised the move would not negatively impact Social Security.
The move would only defer payroll tax payments from September to December, not forgive them, meaning they could be due in January.
But in an interview with Fox News’ Chris Wallace on the weekend, Treasury Secretary Steven Mnuchin said the president would push through legislation to make sure the taxes are forgiven, creating a payroll tax cut.
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