November 22, 2020

Payroll Tax Rates 2021

Payroll Tax Rates 2021 timid mentioned the payroll tax the possibility of one let's get to what could be the possibility of a payroll tax President Trump actually talking, about it just a short time ago image averse to the White House with all the details very confusing say. Man I've no I don't know where anything stands all right so we're following the bouncing ball on.

This yesterday The Washington Post reported that they were discussing the idea of a new payroll tax cut here at the White House the White House comms team put out a statement from a, White House official later, in the day saying no no that's not under discussion at this time downplaying the story well the president today too clearly decided he wanted to. Up play the story and talked about it at the Oval Office also talking about. The idea of indexing capital gains which is something that's been kicked around for a while but the president says he's into that idea as well none of this he says is because. Of a fear of a recession these are just ideas that they think are good ideas, and want to move forward on here's what the president said today as we follow this story a lot of. People have been talking about indexing for many years and it's something that, I am certainly thinking about I can say that a majority of the people in the White House at the level that does, this kind of thing they like indexing so it is something I'm thinking about payroll taxes I've been thinking about payroll, taxes for a long time whether or not we do it now or not is it's not being done because of recession so the president's saying he is considering a payroll tax cut, but maybe, not right now he's also what he likes the idea of indexing as you heard there interestingly the president also Melissa said that he.

Believes he can do an indexing change unilaterally that is without Congress he said that he, believes he can do it on his own indexing capital gains tax rates to inflation that's something that conservative anti-tax.

Activists have wanted for a long time that's a controversial idea a lot of folks in Washington are skeptical that you can do it without Congress I just got off, the phone with Grover Norquist the powerful anti-tax activist here in town he said he believes and. He's been evangelizing at the White House that the president can simply order the Treasury secretary to tell the IRS to change the definition of cost.

In its regulations they do that they can have this change done overnight, it would be a huge sweeping change to tax law and very controversial on Capitol Hill I'm sure so he can do that on his own within presidential powers but for payroll. Tax change that would have to go through Congress it's interesting because the president argues. There is no recession yet there's. A need to do this the Democrats will say the economy is OK we don't want to do this even though Obama did it a few years ago for a period of two years lower the payroll tax to.

Four plus percent and President Obama did it for a stimulus in the time of recession exactly but but, what are the chances of getting congressional approval of that I mean, I think zero right I mean there's just no way the Democrats on Capitol Hill who control the house where the House Ways and Means Committee. Is which rights tax law you know they're just not going, to give the president a big win on anything going into 2020 so I think the chances of that happening are probably zero or south of zero if you can be. South of zero and I. Think on the other front this argument that the president can unilaterally change the capital gains rate by indexing to inflation. This is an argument that the Grover Norquist has been making publicly and has been making inside. The White House to a lot of it he told me he's spoken to everybody at the White House except the president of United States about this and gotten a lot of good push a lot, of good feedback and he feels like it's something this. White House is about to do any day now that's gonna be controversial there are people in town who argue that that's just not possible under the law all. Right ayman thank you a.

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