Trump's federal tax deferral debacle a reminder that good tax policy matters--NBC NEWS/Opinion-Analysis-Essays

| No Comments
By Philip Hackney, associate professor of law at the University of Pittsburgh School of Law

***

Last August, in the middle of the Covid-19 crisis, Trump issued an executive order -- against the advice of tax experts from the right and the left -- directing the secretary of the Treasury to allow all employers to defer withholding on the employee share of social security taxes for employees making less than $4,000 in a biweekly pay period.

What did this mean? It meant that an employer could choose to not withhold the 6.2 percent employee share of taxes due for around nine biweekly pay periods, from September 2020 to this January. That's a potential total deferral of over $2,000 in payroll taxes.

The catch? The executive order did not and could not eliminate the tax, it only deferred it. Generally only Congress has the power to impose or remove taxes.

***

Read more...


Leave a comment

About this Entry

This page contains a single entry by Leonard E. Sienko, Jr. published on June 6, 2021 6:24 PM.

IRS sending more than 2.8 million refunds to those who already paid taxes on 2020 unemployment compensation | Internal Revenue Service was the previous entry in this blog.

Predictive policing strategies for children face pushback--NBC NEWS is the next entry in this blog.

Find recent content on the main index or look in the archives to find all content.

Monthly Archives

Pages

Powered by Movable Type 5.11