As President Donald Trump’s re-election platform comes into focus, taxpayers are getting an idea of what they can expect from a second term.
Trump reaffirmed this week his vow to forgive all payroll taxes his administration has deferred as part of a series of executive actions meant to provide relief to Americans struggling under a coronavirus-induced recession.
“He will raise your taxes”
The president’s promise to make that tax holiday permanent came in the form of a tweet on Thursday.
“When we win I, as your President, will totally forgive ALL deferred payroll taxes with money from the General Fund,” he wrote.
Trump went on to assert that he would continue to prioritize the funding of Social Security and related programs, suggesting Democratic presidential nominee Joe Biden “will do the opposite, he will raise your taxes and DESTROY our Country!”
The president has previously flirted with the idea of making the tax cut, announced last month to be in effect until the end of the year, permanent in his second term. Thursday’s tweet signaled his willingness to forgive those taxes already deferred in his first term.
While Trump has remained optimistic about the positive impact the tax deferral will have on the economy, a number of critics have rejected it as unnecessarily complicated. Under the order, private employers are given a choice regarding whether they will participate.
“A lot of companies are looking at this and saying this has too many challenges,” U.S. Chamber of Commerce Vice President for Tax Policy and Economic Development Caroline L. Harris said, according to a report from The New York Times. “I have not heard from any companies that intend to do this.”
“Too many challenges”
If the taxes are not permanently forgiven, American workers could face a hefty tax bill next year. Trump’s plan to make the tax cuts permanent in a second term would address much of the criticism.
The president’s latest tweet also reiterates a commitment to fully fund Social Security, which some have worried could be in danger with a permanent payroll tax cut.
Of course, the details of Trump’s promise still need to be ironed out, with Democrats in both the House and Senate dedicated to blocking his progress on the matter.
Fortunately for those who support the move, however, U.S. Rep. Kevin Brady (R-TX) is prepared to fight on behalf of the president, asserting that it “would be a shame if employers large and small don’t help their workers with this deferral,” The New York Times reported.