Coronavirus: What a payroll tax cut is, and how it could impact you - Business Insider

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The Trump administration is pushing for payroll tax cuts in a coronavirus relief package. Here's what a payroll tax cut is, and how it could impact you.

A payroll tax cut could free up more cash for employees and employers. If Social Security and Medicare taxes aren't taken out of paychecks, workers and businesses would take home a little more money with each paycheck.

The idea is that workers benefiting from the cut would spend more money, which could help curb a recession. It could give employers more money, which could reduce the need to lay off employees. A payroll tax cut, if enacted for both employees and employers, could give workers more money to spend and businesses more cash as they face a decline in consumer spending through the crisis.

The tax cut would disproportionately give more money to people with higher incomes, who typically have more savings to fall back on during a crisis like the coronavirus pandemic. A payroll tax cut would also do nothing to help those who lost their jobs because of the crisis, especially lower-income people in industries like tourism, hospitality, and dining that have been especially hit hard by the pandemic and decline in demand from consumers. that a tax cut would essentially be a "slow drip," rather than an immediate boost that could help curb a recession.

 

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Only helps the riches. Same story as usual. It really makes me wonder how and why people of USA aren't pissed off about the current state of USA. Instead they seem to embrace the ponzi scheme aka stock market.

This will not help people who really need it. This is stupid.

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