Payroll Tax Delay To Boost Take-Home Pay, But Don't Spend It Yet
President Trump has directed the Treasury Department to stop collecting payroll taxes this fall in an effort to boost workers' paychecks. But the move is temporary, and could spark headaches in 2021.
President Trump wants to give a $100 billion boost to the U.S. economy by hitting the "pause" button on workers' payroll taxes.
That would leave more money in people's paychecks. But the move — which Trump ordered over the weekend — is only temporary. And that could produce headaches down the road for workers, employers and the Social Security system.
Trump announced the payroll tax suspension on Saturday as part after talks on a more comprehensive bill to provide coronavirus relief broke down. He directed the Treasury Department to making up to $104,000 a year. The move is supposed to take effect next month.
