- Oops!Something went wrong.Please try again later.
- 45th President of the United States
Trump wants a payroll tax holiday until the 2020 election is over, Bloomberg News first reported.
The Trump administration is currently sketching out an economic package that provides financial relief to Americans.
But Democrats haven't lined up to support it, underscoring the challenge for Trump to get it through Congress.
President Trump told Republican senators on Tuesday that he wants to institute a payroll tax holiday until the end of the November election, according to Bloomberg News.
Three people familiar with the comments told the outlet that the president is trying to avoid a hike in taxes that shrinks paychecks before voters cast their ballots later this year.
Trump said on Monday that he is seeking a payroll tax cut as part of an effort that provides economic relief to workers, particularly those in hourly jobs.
But Democrats have been cool to the idea of a payroll tax cut so far, underscoring the challenge for Trump to get that part of any legislative package through Congress.
"I don't think we think that the payroll tax cut is what we need right now," House Majority Leader Steny Hoyer told the Washington Post on Monday. "What the economy needs right now is some stability and confidence that we are addressing the issue that is undermining the economy."
The cost of a payroll tax cut depends on how much it's scaled back and its duration, as it's a tax on wages that helps support programs like Social Security and Medicare. Employers and employees each pay the 6.2% tax and most of it funds the latter safety net program.
A recent forecast from the Committee for a Responsible Federal Budget said that reducing payroll taxes would cost between $55 billion and $75 billion in revenue for each percentage point cut.
The Trump administration is under mounting pressure to stabilize erratic markets and the economy, which is dealing with the fallout of the coronavirus.
Read the original article on Business Insider