2020-09-30@21:01:01 GMT
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    The establishment media is all aflutter Monday after a New York Times story over the weekend about incumbent GOP President Donald Trump’s tax records, but it turns out Democrat candidate former Vice President Joe Biden used a series of tax code loopholes to avoid paying hundreds of thousands of dollars in taxes over the years. Back in August, the Wall Street Journal’s Chris Jacobs exposed how the Biden family structured what is called an “S-Corp” to avoid paying hundreds of thousands of dollars in taxes. “How the Bidens Dodged the Payroll Tax,” was Jacobs’ headline on Aug. 10. In it, the Journal details how the Bidens set up an S-Corporation to avoid paying more than half a million dollars in...
    Quartararo fastest in Catalonia MotoGP practice Can your Zodiac sign affect how you handle money? Most Americans Fear President Trumps Payroll Tax Break Will Destroy Social Security Social Security serves as a critical income source for millions of older Americans, but the program is deep in the throes of a financial crisis that could worsen as the coronavirus pandemic drags on. Social Security's primary source of revenue is payroll taxes -- the taxes that workers pay on earnings of up to $137,700 (that's the threshold for 2020, but it changes from year to year). © Provided by The Motley Fool Most Americans Fear President Trump's Payroll Tax Break Will Destroy Social Security In the coming years, Social Security stands...
    zimmytws | iStock | Getty Images The stimulus stalemate has pitted Democrats and Republicans against each other on Capitol Hill. But another issue — Social Security and its ability to pay retirement, disability, survivor and other benefits into the future — has also created a rift between leaders of the two parties. Congressional lawmakers gathered on Thursday in a House Ways and Means Committee meeting titled "Save Our Social Security Now." There, Democrats and Republicans clashed over whether Trump's move indicates a broader plan to permanently eliminate the payroll taxes that fund the program. More from Personal Finance:What Trump's payroll tax plan may mean for Social Security's futureWhat a Biden win could mean for your Social Security benefits Claiming Social...
    President Donald Trump has charged his own campaign hundreds of thousands of dollars in rent for offices in Trump Tower for more than five years. But the campaign doesn’t always send its rent to Trump Tower. In fact, most of the checks have gone to a post office box in Hicksville, New York, a suburban community on Long Island. It’s not clear why, or who is receiving those checks. But experts say that the address may be of interest to Manhattan District Attorney Cy Vance, who in a court filing earlier this week made his clearest statements yet about the scope and focus of his criminal investigation into President Trump’s finances. The Trump campaign has rented office space at Trump Tower, off and on, since Donald...
    How many points will be scored in the Chiefs-Ravens showdown? The 17 Most Stunning Engagement Rings That Cost Less Than $3,500 Fact or Fiction: Has Joe Biden Advocated Cutting Social Security? Despite this being a chaotic year, it's important to remember that, in 39 days, Americans will be headed to the polls or mailing in their ballots to determine the future path of the United States of America. © Provided by The Motley Fool Fact or Fiction: Has Joe Biden Advocated Cutting Social Security? There's no question that the ongoing response to the coronavirus disease 2019 (COVID-19) pandemic, as well as strategies to incite economic growth following the first recession in 11 years, are going to dominate the debate...
    Roger Sollenberger September 25, 2020 9:00AM (UTC) President Donald Trump has charged his own campaign hundreds of thousands of dollars in rent for offices in Trump Tower for more than five years. But the campaign doesn't always send its rent to Trump Tower. In fact, most of the checks have gone to a post office box in Hicksville, New York, a suburban community on Long Island. It's not clear why, or who is receiving those checks. But experts say that the address may be of interest to Manhattan District Attorney Cy Vance, who in a court filing earlier this week made his clearest statements yet about the scope and focus of his criminal investigation into President Trump's finances. The Trump campaign has rented...
    Treasury Secretary Steven Mnuchin on Thursday said that he would consider allowing federal workers to opt out of President Trump's payroll tax deferral plan, an option that would entail logistical headaches for the government sectors participating in the program. “I think that [opting out] is a reasonable issue if people don’t want to participate,” he told the Senate Banking Committee in a hearing on the CARES Act. Mnuchin said he would consult with the White House’s Office of Management and Budget on allowing people to not participate in the program. Permitting workers to opt out of the payroll tax delay would force employers to account for the preference of each of their employees. Currently, the federal government, minus...
    President Donald Trump boards Air Force One at Joint Base Andrews, Maryland, Sept. 21 as he departs Washington for campaign travel to Ohio.Tom Brenner | Reuters The future of Social Security could be a big issue in the next presidential term, no matter which party wins the Oval Office in November. The program's funds, which already face depletion in the future, may run out sooner due to the economic effects of the coronavirus pandemic. Once that date is reached, benefit checks will be reduced. Some have taken President Donald Trump's temporary payroll tax deferral as a signal for a broader strategy he could implement if he is re-elected. More from Personal Finance:What a Biden win may mean for your Social...
    With all the other things in the news, it is easy to overlook the fact that the president’s proposal to defer Social Security payroll tax payments went into effect on Sept. 1. Specifically, employers can stop withholding the 6.2% employee share of the Social Security tax through the end of the year for those earning under $104,000. Of course, the employer must recoup those deferred taxes from the employee in early 2021. What if I'm in my 40s and don't have a retirement fund? The proposal is a bad idea on so many fronts. • First, those fortunate enough to keep their jobs are the lucky ones and the least in need of financial relief. • Second,...
    President Trump is insistent on pushing payroll tax cuts through executive action, according to a top adviser, even though employers have expressed little interest in the arrangement and it has allowed Joe Biden to attack him as undermining Social Security. "He really wants to keep pushing the payroll tax cut," said Stephen Moore, an outside economic adviser to Trump. "Trump's really frustrated that people don't get this and aren't taking full advantage of it. He truly feels it could be a big boost for everyday people and the economy at large," Moore told the Washington Examiner. Moore met with Trump and multiple senior White House officials on Wednesday. Trump, in August, created a way for employers to suspend payroll...
    A store displays a sign before closing down permanently in Arlington, Virginia.OLIVIER DOULIERY/AFP via Getty Images States are poised to raise taxes on businesses starting next year and cut jobless benefits for workers as the coronavirus-fueled downturn continues to stress unemployment systems around the country. Industries like bars and restaurants that were hit hardest by the employment crisis may be hit with the biggest tax hikes. Millions of Americans have continued to draw jobless benefits over the past six months and hundreds of thousands file new applications for aid each week. Zoom In IconArrows pointing outwards That deluge — unparalleled in the history of the unemployment insurance system, which was created in the 1930s — has drained the trust funds states use...
    Many, if not all, employers are declining the payroll tax deferral plan that President Trump made available on Aug. 8. “Virtually all private sector employers are deciding against opting in to the deferral,” said Garrett Watson, a senior policy analyst at the Tax Foundation, a nonpartisan think tank that examines the tax code. Other tax experts have said they have yet to hear of any company taking advantage of the program. The Washington Examiner could not find a single company participating in it. Several organizations representing small businesses have said that their members will not participate in the deferral program. “Many of our members will likely decline to implement deferral, choosing instead to continue to withhold and remit...
    MINNEAPOLIS (WCCO) — Both President Trump and​ Democratic Presidential candidate Joe Biden are visiting “swing state” Minnesota on Friday. Now, a couple of Biden TV ads say President Trump is planning to end Social Security, but that’s a stretch. The Biden ad claims President Trump has a plan​ to cut Social Security and let it run out of money. That’s false. Here’s what the ad says, in its entirety: “For our seniors, Social Security is a sacred obligation. A sacred promise made. The current President is threatening to break that promise. He’s proposing to eliminate a tax that pays for Social Security. Without any way of making up for that lost revenue. I will not let that happen. If I...
    Director of National Economic Council Larry Kudlow is kind of terrifying, actually. The White House is quite put out that Donald Trump's efforts to destroy Social Security are not being wholly embraced by American businesses. The payroll tax deferment to employees that Trump tried to force through executive order after it was roundly rejected for months by everyone in Congress is just not being deployed, even though plenty of employers have decided to take the employer-side deferment they got earlier this year. It has Team Trump baffled and angry. "Businesses got their own tax holiday," National Economic Council Director Larry Kudlow said recently. "I don't know why they don't want to give their workforce a holiday." Clearly Kudlow has never been in...
    U.S. President Donald Trump speaks during a campaign event at Smith Reynolds Regional Airport in Winston-Salem, N.C., September 8, 2020.Jonathan Ernst | Reuters It's been nearly two weeks since President Donald Trump's payroll tax deferral took effect – and large employers so far seem to have little appetite for the holiday. Starting on Sept. 1, employers could defer collection of the 6.2% tax employees pay toward Social Security. This deferral is in effect through the end of the year and applies to workers making less than $4,000 per biweekly pay period – roughly $104,000 on an annualized basis. Though implementing the deferral would give workers a temporary 6.2% bump in pay, the employer is responsible for recouping the deferred taxes...
    Padres, Giants to play key DH amid postseason push Best war movies of all time Bidens Tax Returns Show Why His Payroll Tax Plan May Not Save Social Security With Social Security in financial trouble, Democratic presidential candidate Joe Biden has put forth a plan to fix its funding problems. © Provided by The Motley Fool Biden's Tax Returns Show Why His Payroll Tax Plan May Not Save Social Security Social Security gets the bulk of its income from payroll taxes, which are currently assessed on wages up to an annual wage base limit of $137,700. Biden would expand the wages subject to payroll tax by also assessing it on income above $400,000. That means higher earners would theoretically...
    (CNN)Many federal workers will soon see a few hundred dollars more in their paychecks, thanks to a coronavirus relief measure signed last month by President Donald Trump.Union leaders, however, are furious that their members are being forced to participate in the President's payroll tax deferral program, which many private business leaders have said they'll forgo.That's because workers will have to pay back hundreds or even thousands of dollars in payroll taxes in early 2021, because Trump's move simply pushes back the date the levy is due. "People are going to have to be prepared that sometime from January 1 to April 30, they are going to have to pay back this money," Tony Reardon, national president of the National Treasury...
    Rep. Kevin BradyKevin Patrick BradyFive things to know about Trump's payroll tax deferral On The Money: Five takeaways from the July jobs report Stimulus checks debate now focuses on size, eligibility MORE (R-Texas), the top Republican on the House Ways and Means Committee, introduced legislation on Friday that would create a payroll tax holiday from Sept. 1 through Dec. 31, an effort aimed at forgiving the taxes deferred under a memo President TrumpDonald John TrumpWarren: I feel 'deep down fury' that Trump downplayed pandemic NYT reporter removed from Trump rally in Michigan Trump says he didn't share classified information following Woodward book MORE signed last month. The bill would reduce the 6.2-percent employee-side Social Security tax to zero in the...
    House Speaker Nancy Pelosi, D-Calif., holds her weekly press briefing on Capitol Hill on Aug. 13, 2020.Jim Watson | AFP | Getty Images The U.S. House of Representatives won't be rolling out the payroll tax deferral to its employees. Sept. 1 was the first day of President Donald Trump's order deferring the 6.2% employees pay toward Social Security. The so-called holiday, which applies to workers whose biweekly pay is below $4,000, is in effect until the end of the year. The tax delay is only a deferral and not forgiveness. Congress would need to pass legislation in order to forgive the taxes. Though private employers are expected to shy away from adopting the deferral due to its complexity, the federal government...
    Vicious little suckers: Massive clouds of mosquitoes kill cows, horses in Louisiana after Hurricane Laura This Popular Grocery Chain Is Adding Pickup Service to 480 Stores Joe Biden on Social Security: Everything You Need to Know There's no question that this has been an unpredictable and unforgettable year. The coronavirus disease 2019 (COVID-19) pandemic has completely transformed societal habits, cost more than 190,000 American lives, and upended the longest economic expansion in U.S. history, dating back to when record-keeping began roughly 160 years ago. © Provided by The Motley Fool Joe Biden on Social Security: Everything You Need to Know But it's important not to lose sight of the fact that it's also an election year. Up for grabs...
    A Hudson Valley attorney living in Fairfield County will spend time behind bars after admitting to tax evasion and failing to pay over payroll taxes during a long-running scheme. Danbury resident Francis O’Reilly, an attorney in Putnam County, in Carmel, was sentenced this week to 18 months in prison for an elaborate scheme that cost the U.S. Treasury more than $800,000 following his guilty plea last year. Prosecutors said that O’Reilly has been permitted to practice law in New York since 1989, and has been a self-employed attorney who worked out of Putnam County at the O’Reilly Law Practice. In 2015, O’Reilly admitted to withholding payroll taxes from the salaries of some employees of his practice, but reported “substantial amounts...
    The last time Trump treated federal workers like this, they lost pay for weeks. When most of corporate America refused to take Donald Trump up on his offer to "terminate" the payroll taxes that pay for Social Security and Medicare, at least for the next several months, Trump decided he had to impose his scheme on someone. So he forced it on his captive employees: federal workers. Democratic senators—and one Republican!—have told him to back off. About two dozen lawmakers, led by Sen. Chris Van Hollen—who represents many federal workers who live in Maryland—wrote to the Treasury Department and the Office of Management and Budget to tell them to knock it off. "We urge you to let federal workers and uniformed...
    A group of top senators urged the Trump administration to allow federal workers and military members to opt out of a temporary payroll tax deferral that began at the start of September. "Federal workers and service members should not be used as pawns for a payroll tax scheme that many private sector employers are unlikely to join and where key questions remain unanswered," the senators wrote in a letter addressed to Treasury Secretary Steven Mnuchin and Office of Management and Budget Director Russell Vought. More than 20 senators signed the letter, which was spearheaded by Sen. Chris Van Hollen, D-Md. With the exception of Sen. Susan Collins, R-Maine, all of the signatories are members of the Senate Democratic Caucus. HOUSE DEM PUSHES MEASURE TO OVERHAUL...
    nelsonarts | E+ | Getty Images While private companies decide how to proceed with the payroll tax holiday, one major employer has decided that it's in: the federal government. President Donald Trump's payroll tax deferral, which he issued via executive order, took effect on Sept. 1. It's a temporary suspension of the 6.2% tax employees pay toward Social Security, effective until the end of the year, and it applies to individuals who earn no more than $4,000 per bi-weekly pay period. The key issue is that this is only a deferral of the tax — not outright forgiveness, which would require legislation from Congress. That means participating employees would enjoy a 6.2% bump in their take-home pay for the remainder...
    Washington, DC (CNN)With less than two months to go before Election Day, both the Trump and Biden campaigns debuted new ads tied to the Labor Day holiday.The Biden campaign is launching two ads in battleground states, one that focus on easing social tension in the US and another attacking the administration on Social Security funding.President Donald Trump's campaign ad pushes the idea that the worst parts of the pandemic are behind us. It focuses on vaccine progress and job creation while gliding past remaining issues like schools reopening, the continued high level of cases and the 11.5 million jobs still lost in the pandemic.Here's a look at some of the misleading claims made in this ad blitz. Read MoreSocial SecurityIn...
    Many Americans who earn less than $104,000 a year will see a bump in their take-home pay for the remainder of 2020 thanks to President Donald Trump’s executive order mandating a payroll tax holiday from September through December. However, Trump’s order merely defers the payment of those payroll taxes until the start of the new year, meaning that anyone who benefits from the measure will be on the hook for whatever they saved. The tax burden could be substantial — White House economic advisor Larry Kudlow said in August that the average person who partakes in the tax holiday stands to take home an additional $1,200 through the end of 2020. IRS guidance issued in late August revealed that employers...
    Military members will not be able to opt out of President Donald Trump’s payroll tax deferral, The Hill reports. The payroll services provider for the Department of Defense said all military personnel will be enrolled in the deferral program.  "Military members are not eligible to opt-out of the deferral if their Social Security wages fall within the stated limits," the Defense Finance and Accounting Service, or DFAS, said on its website. "The deferral will happen automatically." Last month, Trump signed a memo directing the Treasury Department to allow employers to defer payment of employee-side Social Security payroll taxes. The goal is to allow workers to keep more money in their pockets amid the coronavirus pandemic. Under IRS guidance implementing the order,...
    And they’re off — to getting a temporary bump in their take-home pay. The Nassau County Off-Tracking Betting Corporation has taken up President Trump’s call and is giving workers a pause in paying the 6.2 percent payroll tax, which funds Social Security. The move will provide OTB employees more take home pay in the short-term during the COVID-19 pandemic —  but they could see less weekly money  in early 2021 as they pay back the tax, unless Congress decides to finance the revenue loss, which is very questionable. Many businesses have declined to implement the the payroll tax holiday despite Trump’s Aug. 8 executive order due to do because of the potential higher tax liability for workers down the...
    A House Democrat introduced two bills on Friday in an effort to block President Trump's executive action allowing companies to temporarily defer some employees' payroll taxes. Rep. John Larson, D-Conn., the chairman of the House Ways and Means Committee's Social Security subpanel, introduced legislation -- the Save Our Social Security Now Act -- that would overturn the measure Trump introduced at the beginning of August. He also proposed a Congressional Review Act resolution to nullify the IRS guidance alongside other House Democrats, including Ways and Means Committee Chairman Richard Neal. The lawmakers introduced the legislation after Sens. Chuck Schumer, D-N.Y., and Ron Wyden, D-Ore., on Wednesday sent a letter to the Government Accountability Office requesting that the congressional watchdog determine whether guidance issued by the...
    The Washington Post published an analysis describing how an ad for Joe Biden’s presidential campaign attacked a Social Security plan from President Trump that “does not exist.” The Washington Post’s Glenn Kessler fact-checked an ad from the Biden camp this month that claimed Social Security benefits will run dry by 2023, in a piece titled “Biden campaign attacks a Trump Social Security ‘plan’ that does not exist." The ad claims, “The chief actuary of the Social Security Administration just released an analysis of Trump’s planned cuts to Social Security. Under Trump’s plan, Social Security would become permanently depleted by the middle of calendar year 2023. If Trump gets his way, Social Security benefits will run out in just three years...
    A passing news item about taxes caught my attention as an example of why people can find government so annoying at times. Perhaps it’s even more so with this particular White House that promises, but then falters on delivery, spreading distrust for the role of government more generally. About 1.3 million federal workers, 60% of the total, are about to see an increase in pay as the result of that promised payroll tax deferral – but they will have to repay that tax next year since the deferral is temporary. Only those earning less than $100,000 are affected. If you’re going to do it, Mr. President, shouldn’t we expect that it will be done completely and not be half-baked? Donald Trump...
    NEW YORK – Small business employees are getting their first paychecks for September and are probably noticing the usual amount. It’s that business owners are still withholding money for Social Security despite a presidential order allowing the tax to be deferred. The order that President Donald Trump signed on Aug. 8 allows employers to stop withholding the 6.2% payroll tax from Sept. 1 through Dec. 31. Employees must earn less than $ 4,000 every two weeks to qualify. Trump said the order was aimed at putting more money in Americans’ pockets during the coronavirus outbreak. But small business owners are wary of the plan. The tax is still due between January 1 and April 30...
    NEW YORK – Small business employees are getting their first paychecks for September and are probably noticing the usual amount. It’s that business owners are still withholding money for Social Security despite a presidential order allowing the tax to be deferred. The order that President Donald Trump signed on Aug. 8 allows employers to stop withholding the 6.2% payroll tax from Sept. 1 through Dec. 31. Employees must earn less than $ 4,000 every two weeks to qualify. Trump said the order was aimed at putting more money in Americans’ pockets during the coronavirus outbreak. But small business owners are wary of the plan. The tax is still due between January 1 and April 30...
    NEW YORK – Small business employees are getting their first paychecks for September and are probably noticing the usual amount. It’s that business owners are still withholding money for Social Security despite a presidential order allowing the tax to be deferred. The order that President Donald Trump signed on Aug. 8 allows employers to stop withholding the 6.2% payroll tax from Sept. 1 through Dec. 31. Employees must earn less than $ 4,000 every two weeks to qualify. Trump said the order was aimed at putting more money in Americans’ pockets during the coronavirus outbreak. But small business owners are wary of the plan. The tax is still due between January 1 and April 30...
    NEW YORK (AP) — As employees of small businesses get their first September paychecks, they’re probably receiving their usual amount — company owners are still withholding money for Social Security despite a presidential order allowing the tax to be deferred. The order President Donald Trump signed Aug. 8 allows employers to stop withholding the 6.2% payroll tax from Sept. 1 through Dec. 31. Employees must make under $4,000 every two weeks to qualify. Trump said the order was aimed at putting more money into Americans’ pockets during the coronavirus outbreak. Small business owners are wary about the plan. The tax must still be paid between Jan. 1 and April 30 of next year, which means employees could take an...
    Terry H. Schwadron September 5, 2020 12:28PM (UTC) Read more articles from the DCReport here. A passing news item about taxes caught my attention as an example of why people can find government so annoying at times. Perhaps it's even more so with this particular White House that promises, but then falters on delivery, spreading distrust for the role of government more generally. : About 1.3 million federal workers, about 60% of the total, are about to see an increase in pay as the result of that promised payroll tax deferral – but they will have to repay that tax next year since the deferral is temporary. Only those earning less than $100,000 are affected. Donald Trump signed an executive order...
    Rep. John Larson John Barry LarsonSenate Democrats take step toward vote on overturning Trump's payroll-tax deferral Conservatives urge Trump to take unilateral action to suspend payroll tax collection House Dems introduce bill to require masks on planes and in airports MORE (D-Conn.) on Friday introduced two measures in an effort to block President TrumpDonald John TrumpNetanyahu privately condoned US arms sale plan with UAE: report Trump denies report he called U.S. service members buried in France 'losers', 'suckers' Jim Carrey pens op-ed comparing Trump to Michael Corleone in 'The Godfather' MORE's initiative to defer payroll taxes. Larson, the chairman of the House Ways and Means Committee's Social Security subcommittee, introduced a bill to nullify IRS guidance that implements a memo...
    The best player for each of the 32 NFL franchises This 66 Volvo is one of the most expensive cars ever sold at auction Trump Could Kill Social Security in 2.5 Years With This Proposal Social Security is a program that senior citizens have come to rely on during their golden years. According to the Social Security Administration, 62% of retired workers lean on their benefit to account for at least half of their monthly income, with 34% of seniors relying on Social Security for virtually all of their income (90%-100%). Without this program, elderly poverty rates would be over four times higher than they are today. © Provided by The Motley Fool Trump Could Kill Social Security in...
    A passing news item about taxes caught my attention as an example of why people can find government so annoying at times. Perhaps it’s even more so with this particular White House that promises, but then falters on delivery, spreading distrust for the role of government more generally. About 1.3 million federal workers, 60% of the total, are about to see an increase in pay as the result of that promised payroll tax deferral – but they will have to repay that tax next year since the deferral is temporary. Only those earning less than $100,000 are affected. If you’re going to do it, Mr. President, shouldn’t we expect that it will be done completely and not be half-baked? Donald Trump...
    Although President Donald Trump announced a plan to let companies temporarily defer payroll taxes for their workers, few companies are taking part, meaning many Americans won’t see an increase in their paychecks. The IRS issued guidance last week stating that employers have responsibility for the tax deferral, and that although they could cease withholding workers’ payroll taxes if those employees earn less than $104,000 per year, those employees would still have to pay those taxes by the end of next April, and they could face up to 6.2% in past-due taxes before they pay the amount deferred this year.  Although Trump said that he plans to forgive those taxes, that would require an act of Congress, and Fox Business notes...
    U.S. Senate Minority Leader Chuck Schumer (D-NY) speaks to reporters during a news conference on Democrats' demand for an extension of eviction protections in the next coronavirus disease (Covid-19) aid bill on Capitol Hill in Washington, July 22, 2020.Jonathan Ernst | Reuters Senate Democrats are making a last-ditch effort to undo President Donald Trump's payroll tax deferral. Sens. Chuck Schumer, D-N.Y., and Ron Wyden, D-Oregon, wrote to the Government Accountability Office, requesting that the Congressional watchdog determine whether guidance issued by the Treasury Department and the IRS on the payroll tax suspension is deemed a "rule" for the purposes of the Congressional Review Act. The Congressional Review Act is a law that Congress can use to overturn rules handed down...
    After weeks of speculation about an $825 million transfer, Lionel Messi is now almost certain to stay at Barcelona, Argentinas press says The Surprising New Way You Can Find Out If Youve Been Exposed to COVID This Trump Proposal Could Kill Social Security The devil is in the details, as they say. President Trump has recently made some moves and suggestions that put Social Security at risk -- and that may have other consequences that surprise many Americans -- such as ending Social Security.  © Provided by The Motley Fool This Trump Proposal Could Kill Social Security Here's a closer look at what has been done, what has been proposed, and what their effects on Social Security and taxpayers...
    President Donald Trump's plan to allow companies to defer employees' payroll taxes, one of the main components of executive orders aimed at providing Americans with additional financial aid amid the coronavirus-battered economy, kicked off on Tuesday. But few companies are opting to take part in the plan. Mr. Trump's plan would give workers an average of $2,200 in additional pay over the next four months — but payroll and accounting experts say the tax-deferral plan has drawn lackluster interest at its debut. Corporate advisers who work with large and small employers say they have fielded plenty of questions from their corporate clients about how Mr. Trump's voluntary deferral plan might work. But very few companies have said they will actually participate, casting...
    Maskot/Getty Images Tough choices are ahead for employers as President Donald Trump's payroll tax holiday goes into effect, but it's never too early for employees to figure out what's coming up. The payroll tax deferral went into effect on Sept. 1, following an executive order Trump had issued in August. It's effective until the end of the year. Workers and employers each share half of a 12.4% tax to cover Social Security, plus a 2.9% tax to pay for Medicare. The Social Security tax applies to up to $137,700 of your wages in 2020 — and this number is adjusted every year – but the Medicare tax comes into play beyond this level. The holiday applies to the employee's share of...
    HOUSTON, Texas -- A payroll tax deferral is in effect until the end of the year, but if you want to avoid a potential tax bill, there are steps you can take now.Starting Sept. 1, you may have received a raise, and didn't realize it. Through the end of the year, the federal government isn't collecting 6.2 percent of your salary."Money's been tight for a lot of families, and that extra six percent will give them that ability to save and maybe put their kids in college," Katy resident Charlene Wilson said.SEE ALSO: Payroll tax suspension to start in September could increase employee take-home payWhile it's a raise now, it won't stay that way for long.The tax is only deferred....
    One way U.S. voters are being played during this presidential election campaign is the deceitful manner in which key issues are being framed for their consumption. Arguably the biggest and most important of these concerns the so-called “third rail” of American politics: Social Security.  President Donald Trump has vowed to kill funding for this critical, gargantuan program that nearly 70 million Americans depend on.  What? You haven’t heard Trump say he wants to kill Social Security’s funding? Actually, you have. Trump says he wants to kill the payroll tax — which is how Social Security is funded.  Perhaps like many Americans, you’re unaware of how Social Security is financed. It comes from payroll taxes that are paid by you and your...
    Private businesses have largely decided to reject Donald Trump's offer to suspend payroll taxes for their employees, mostly because it's just a temporary suspension that those employees would have to pay back next year. But Trump is so fixated on the payroll tax cut—which no one else, even Sen. Mitch McConnell, has embraced—that he's forcing it on government employees. With their next paycheck, about 1.3 million people are going to see the temporary boost in pay … which they'll need to save to repay next year. Democratic Rep. Don Beyer, whose Northern Virginia district includes a large share of federal employees, blasted the move, saying Trump was treating those employees like "guinea pigs." The deferral, he said, "would not really put...
    PHILADELPHIA (CBS) — Many Americans will see a boost in the paychecks starting today as a nationwide payroll tax holiday begins. The mandate defers the 6.2% tax that employees pay for social security. Employers are responsible for deferring and eventually paying that tax. The holiday will only last through the end of the year. But, workers may see smaller paychecks early next year as companies withhold more to pay the IRS.
    Happy Tuesday MarketWatchers. Don’t miss these top stories: Airlines are getting rid of flight change fees — but don’t expect air travel to get any cheaper ‘Just because airlines have eliminated change fees doesn’t mean we’re about to enter a new golden age of travel.’ Advice for Salesforce staff who reported having a mental-health issue — and all workers during the COVID-19 pandemic Salesforce CEO Marc Benioff said about one-third of the firm’s employees reported experiencing a mental-health issue. ‘I tried walking more than 3 blocks, paying the price with chest pains and crippling fatigue’: One woman’s long-haul recovery from COVID-19 ‘Sure, I had my life back, but it wasn’t my life. It was someone else’s life.’ It seemed safe...
    NFC West over/unders: Who will win the NFLs toughest division This beautiful town outside Seattle is one of the best places to retire in America Today is the first day of the payroll tax deferral. Its complicated, heres what we know President Donald Trump’s payroll tax holiday — a temporary suspension of the employee’s 6.2% share of the Social Security tax — takes effect on Sept. 1 and runs until the end of the year. Recent guidance from the IRS doesn’t explicitly say that employers must participate. Companies that do may give employees the choice of opting into the deferral, but it will depend on the employer, payroll experts say. Employees who participate in the deferral will see...
    President Donald Trump delivers his acceptance speech as the 2020 Republican presidential nominee on the South Lawn of the White House in Washington on Aug. 27.Kevin Lamarque | Reuters It's the first official day of President Trump's payroll tax holiday, and plenty of uncertainty is swirling around employers and their workers over how it will work. The president handed down the payroll tax deferral for employees via executive order in early August. The holiday applies to workers whose biweekly pay is below $4,000 on a pretax basis, and it runs from Sept. 1 until the end of the year. Workers and their employers split the responsibility for the payroll tax: a 12.4% levy that funds Social Security, plus 2.9% to...
    Weeks after President Donald Trump authorized a payroll tax deferral to try to free up cash for Americans dealing with the coronavirus pandemic, the Internal Revenue Service now has specifics about what the order means for companies cutting paychecks and the workers receiving those checks. For a worker whose employer chooses to defer the tax obligation, the upshot is simple: Slightly bigger paychecks now and slightly smaller paychecks next year, according to payroll processing experts who have analyzed the IRS guidance. Workers don’t have to worry about saving money for a lump sum of unpaid taxes, said Pete Isberg, vice president of government relations for ADP ADP, -1.59% , the payroll processing company. “ Employees’ ‘only obligation...
    Washington (CNN)During a speech Monday billed as one focused on public safety and law enforcement, Democratic presidential nominee Joe Biden took several swipes at President Donald Trump and defended himself against Trump's attacks. Biden ridiculed Trump's response to the pandemic, blamed him for sowing chaos and accused him of falsely representing Biden's position on fracking. Here's a look at some of the context and facts around several claims Biden made.Cops and the coronavirus"More cops have died from Covid this year than have been killed on patrol," Biden said in his speech. Facts First: This is true.Read MoreAccording to the Officer Down Memorial Page, a national nonprofit organization "dedicated to honoring America's fallen law enforcement heroes," 97 officers have died from...
    U.S. President Donald Trump delivers his acceptance speech as the 2020 Republican presidential nominee on the South Lawn of the White House in Washington on Aug. 27.Carlos Barria | Reuters Workers who participate in President Donald Trump's payroll tax deferral will see a temporary increase in their take-home pay, but they'll likely see smaller paychecks in early 2021. Sept. 1 marks the first day of Trump's payroll tax deferral for employees, which he had handed down in an executive order in early August. The holiday is in effect until the end of the year. Employers and employees split the responsibility for a 12.4% levy that funds Social Security and a 2.9% tax to support Medicare. More from Your Money, Your...
    (CNN) — The US Treasury Department released guidance Friday evening informing companies and workers how Trump’s proposed tax holiday will apply to them. Companies can stop withholding employees’ payroll taxes starting September 1, although workers will have to pay the taxes by the end of April 2021. The new guidance, released together with the IRS, applies only to those whose bi-weekly paychecks are less than $4,000, the equivalent of $104,000 a year. The guidance comes after President Donald Trump’s August 8 executive action giving workers a tax holiday. It left open the possibility of forgiving the deferred tax later on. But only Congress has the power to waive taxes, so all the president can do is postpone when they are...
    Days after the payroll processor for the federal government—one of the nation’s largest employers—announced it would implement President Donald Trump’s plan to defer payroll taxes for the rest of 2020, the U.S. Treasury Department indicated that employers will be responsible for paying the deferred taxes next year. The plan is scheduled to go into effect September 1, and companies that take part will be required to collect the taxes their employees owe from the last four months of this year at the beginning of 2021—after the general election, which Trump hopes to win with claims that he’s strengthened the economy and helped workers. The Friday announcement from the Treasury Department could mean that millions of workers will see smaller paychecks and larger...
    New York (CNN Business)The US Treasury Department released guidance Friday evening informing companies and workers how Trump's proposed tax holiday will apply to them. Companies can stop withholding employees' payroll taxes starting September 1, although workers will have to pay the taxes by the end of April 2021. The new guidance, released together with the IRS, applies only to those whose bi-weekly paychecks are less than $4,000, the equivalent of $104,000 a year.The guidance comes after President Donald Trump's August 8 executive action giving workers a tax holiday. It left open the possibility of forgiving the deferred tax later on.But only Congress has the power to waive taxes, so all the president can do is postpone when they are due....
    Igor Derysh August 29, 2020 2:00PM (UTC) President Donald Trump claimed he would eliminate the payroll tax if he is reelected — but an analysis by the Social Security Administration found that such a move would cause the Social Security Trust Fund to run out of money by 2023. Trump recently signed a memorandum that would temporarily stop the collection of payroll taxes, which is a 12.4% tax split evenly between employees and employers that funds the Social Security and Medicare trust funds. Only Congress can cut taxes, however, so the payroll tax savings would still have to be repaid by next year's tax deadline — though Trump said he would push to forgive the deferred taxes if he is reelected....
    The Internal Revenue Service on Friday alerted employers they can stop withholding their workers’ portion of the federal payroll tax beginning Sept. 1, the implementation of President Donald Trump’s executive order intended to give the economy a boost amid the novel coronavirus-caused slowdown. The action delays the collection of the 6.2% of wages employees – who make less than $104,000 a year – pay for Social Security from between Sept. 1 and Dec. 31 to between Jan. 1 and April 30. While the move will give households more take home pay for the next four months, the tax will still have to be paid in the first four months of 2021, unless Congress waives the tax, which Trump has asked...
    U.S. President Donald Trump reacts at the Republican National Convention in Charlotte, North Carolina, August 24, 2020.David T. Foster | Pool | Reuters The IRS issued long-awaited guidance on President Donald Trump's payroll tax deferral Friday night. And it appears to put the onus on employers to collect any taxes due after the holiday ends. The president signed an executive order on Aug. 8 calling for a deferral of the employees' portion of the payroll tax from Sept. 1 through the end of the year. Currently, employers and employees share responsibility for a 12.4% levy that funds Social Security and a 2.9% tax to support Medicare. Social Security taxes are subject to an annually adjusted wage cap ($137,700 for 2020),...
    You may be getting more money in your paycheck starting next week, but an I-Team investigation into the so-called "tax holiday" breaks down why you may not want to spend the extra cash just yet.A little extra cash on your upcoming paychecks may offer some relief right now during the pandemic to pay the bills - especially if someone in your family lost a job.However, the I-Team found that this extra money in your paycheck could come with strings attached.It is known as a "tax holiday" or a payroll tax suspension and is part of President Trump's recent executive order on COVID-19 relief.RELATED: Payroll tax suspension to start in September could increase employee take-home payEMBED More News Videos Press play...
    From MarketWatch: I’m a 57-year-old nurse with no retirement savings and I want to retire within seven years. What can I do?: The good news — someone in their 50s with little or no retirement savings still has time to catch up. The bad news — she’s going to have to hustle to get the amount of money she needs. Trump plan to scrap payroll tax would reduce benefits by 2021, top Social Security actuary says: The president alone can’t make the decision to cut payroll taxes, but if Congress were to go through with this plan, Social... Get the retirement you deserve Retirement Weekly is the only weekly online resource that specializes exclusively in the financial,...
    Tiger Woods: Masters will be fun but very different experience 20 Things You Should Never Do When Making a Salad Social Security as We Know It Wont Be There for Americans If This Happens Most Americans have serious concerns about the future of Social Security. In fact, according to a recent survey from Nationwide, 79% of millennials, 81% of Gen Xers, and 66% of baby boomers worry that the popular retirement benefits program will run out of money during their lifetimes.  © Provided by The Motley Fool Social Security as We Know It Won't Be There for Americans If This Happens That can't happen under the current system. But if President Donald Trump is reelected and follows through on...
    Wow. With less than three months to go in an election year, President Trump, clearly trailing in the polls, has touched the so-called “third rail” of American politics: Entitlements. Reviving an idea that he backed away from only a few weeks ago, he said recently that he wanted to eliminate the payroll tax for the rest of 2020, and perhaps even beyond that. 80% of older Americans can't afford to retire - COVID-19 isn't helping “If victorious on November 3rd, I plan to forgive these taxes and make permanent cuts to the payroll tax,” he vowed, adding “I’m going to make them all permanent.” Read: Why suspending the Social Security payroll tax is a terrible idea Since the payroll...
    zimmytws | iStock | Getty Images President Donald Trump has put a temporary payroll tax holiday in place in his latest bid to help shore up an American economy crippled by the coronavirus pandemic. While that means some workers will take home bigger checks, others worry that such a change could deplete funding for Social Security, which relies on those taxes. Now, a letter sent this week by Social Security Chief Actuary Stephen Goss estimates that if a permanent payroll tax cut were put in place, it could deplete the program's funding by mid-2023. That's based on the change taking effect for earnings starting on Jan. 1, 2021. More from Personal Finance:The payroll tax holiday will kick off in two...
    The chief actuary for Social Security has grim news for Trump supporters on Social Security: There wouldn't be any more of it before his second term ended if he gets his way on the payroll tax. His plan to eliminate payroll taxes would deplete the Social Security Trust Fund by 2023, "with no ability to pay benefits thereafter." That’s the "Old Age and Survivors Insurance" portion of the fund. The Disability Insurance Trust Fund would be gone next year. Stephen Goss, the chief actuary, detailed this in a letter in response to a query from Democratic Sens. Chuck Schumer (New York), Ron Wyden (Oregon), Chris Van Hollen (Maryland), and independent Bernie Sanders (Vermont) about hypothetical legislation passed by Congress to...
    Washington (CNN)Eliminating the payroll tax could deplete the Social Security trust fund within three years if there's no alternative source of revenue, according to the agency's chief actuary. The analysis was done at the request of four Democratic senators, who asked the agency to run the numbers after President Donald Trump said he would terminate payroll taxes if he's reelected. "We will be, on the assumption I win, we are going to be terminating the payroll tax after the beginning of the new year," Trump said earlier this month, adding that it would save families thousands of dollars. Only Congress could eliminate the payroll tax, and there's little support for it right now on either side of the aisle. It...
    President Donald Trump speaks during a rally at Yuma International Airport in Arizona on Aug. 18.Brendan Smialowski | AFP | Getty Images Employers and payroll companies have less than two weeks to put President Donald Trump's payroll tax deferral in place. It's looking like an uphill battle. The president signed an executive order on Aug. 8 calling for a deferral of the employees' portion of the payroll tax from Sept. 1 through the end of the year. Currently, employers and employees share responsibility for a 12.4% levy that funds Social Security and a 2.9% tax to support Medicare. Social Security taxes are subject to an annually adjusted wage cap ($137,700 for 2020), but Medicare taxes are  assessed beyond that threshold....
    Keanu Neal getting his groove back 100 best movies under 100 minutes Trump Wants to Do the 1 Thing That Could Kill Social Security Last week, America celebrated a very special birthday. Back in August of 1935, President Franklin D. Roosevelt signed the Social Security Act into law, establishing what is still the most important social program in our country. © Provided by The Motley Fool Trump Wants to Do the 1 Thing That Could Kill Social Security Today, Social Security provides benefits to more than 64 million people, more than 70% of whom are retired workers. Of its nearly 45 million retired workers, 62% lean on Social Security for at least half of their monthly income, with over...
    CDC Head Urges Americans to Get Flu Shot Amid COVID-19, As Pharmacists Can Now Give Kids Vaccines Guy Fieri talks about coronavirus restaurant relief, how pandemic affected Food Network filming Transfer VHS Tapes, Film, and Photos to Digital Ad Microsoft Motley Fool Issues Rare “All In” Buy Alert Ad Microsoft 20+ Gadgets We Bet You Haven't Seen Yet Ad Microsoft Full screen 1/19 SLIDES © maxexphoto / Getty Images/iStockphoto On Aug. 8, President Donald...
    The Trump administration is looking to ensure that the payroll tax deferral implemented by executive action is fully forgiven, meaning there would be no liability for the deferred taxes. "As far as the payback is concerned, you know, you could stretch that out for a long period of time. ... You've got a lot of elbow room to get around that issue,” White House economic adviser Larry Kudlow said on Wednesday. President Trump signed an order on Aug. 8 postponing payroll tax payments on income earned between Sept. 1 and the end of the year until 2021 for workers earning less than $104,000 a year. As it currently stands, workers and their employers would be on the hook in...
    Washington (CNN)Recently President Donald Trump and his Democratic opponent, former Vice President Joe Biden, have accused each other of supporting cuts to Social Security."Joe Biden tried to cut Social Security and Medicare for decades," a recent ad from the Trump campaign claims. The Biden campaign hit back last week with an ad of its own, ridiculing Trump's recent executive action to defer payroll taxes."Donald Trump stepped off the golf course and signed an executive action directing funding cuts for Social Security," the ad begins. Facts First: Both of these claims require context. There's disagreement as to what extent Trump's executive action will diminish Social Security funds, and Trump's claims to pay for his proposed payroll tax cut through economic growth...
    (CNN)Business leaders are pouring cold water on President Donald Trump's push to defer payroll taxes, saying that workers could wind up owing a lot to Uncle Sam in 2021 under his plan. "Many of our members consider it unfair to employees to make a decision that would force a big tax bill on them next year," the US Chamber of Commerce and more than 30 trade associations wrote in a letter to Congress and the Treasury Department."It would also be unworkable to implement a system where employees make this decision," wrote the groups, adding many of their members will likely decline to defer the tax.Long enamored with a payroll tax cut, Trump signed an executive action earlier this month that...
    Several big business groups on Tuesday threatened not to participate in President Trump’s payroll tax deferral plan, calling it "unworkable" unless Congress forgives the tax liability. “If this were a suspension of the payroll tax so that employees were not forced to pay it back later, implementation would be less challenging ... [and not] unworkable," wrote the group, which includes lobbying heavyweights such as the U.S. Chamber of Commerce and the National Association of Manufacturers, in a letter to congressional leaders and Treasury Secretary Steven Mnuchin. The letter is referring to the presidential executive order that Trump signed on Aug. 8, postponing payroll tax payments earned between Sept. 1 and the end of the year until 2021 for workers...
    HOUSTON, Texas -- Many people across the country might see their take-home pay increase next month.Beginning Sept. 1, the payroll tax relief program is scheduled to start. With this program, a portion of income tax from an employee's paycheck that is usually withheld by their employer won't be anymore.The program could help add about $100 back to an employee's monthly income, providing some relief to people who are struggling financially during the pandemic.There has been some debate among policymakers about the legality of this program after Pres. Trump announced the move as part of his executive order for COVID-19 relief last week.READ MORE: COVID-19 orders: A breakdown of Trump's actions on $400 weekly unemployment boost, evictions, student loans, payroll taxesSince...
    Friday on Fox News Channel’s “Cavuto,” House Majority Whip James Clyburn (D-SC) spoke out against a payroll tax cut proposed by the Trump administration. Clyburn said even though former President Barack Obama signed a payroll tax cut in 2012, the issues facing the current economy are different because of the pandemic. Partial transcript as follows: CAVUTO: All right, so let’s talk a little bit about what the president has proposed. We talk about this measure right now to get virus relief checks out to people, much like we did when all of this started. Now, he’s added to that, as you know, on top of a payroll tax cut that he’s looking at those who earn up to $104,000 a...
    Greg Sorber/Albuquerque Journal via ZUMA For indispensable reporting on the coronavirus crisis and more, subscribe to Mother Jones' newsletters.A couple of days ago I wrote that Donald Trump accidentally had a good idea when he proposed doing away with the payroll tax that funds Social Security. This prompted several readers to push back on the grounds that funding Social Security through ordinary income taxes would make it a budgetary football every year. But that’s not how it works. Social Security is an entitlement. Technically, it’s classified as mandatory spending, which means that it gets paid out automatically and doesn’t require an annual appropriation. If you qualify, you get Social Security. Period. It doesn’t matter where the funding comes from. It’s...
    President Donald Trump has ordered companies to defer payroll taxes in a move to provide Americans with financial relief and to lift the coronavirus-battered economy. Yet the plan — which instructs the Treasury Department to stop collecting employee payroll taxes starting September 1 — raises a range of questions, not the least of which is whether companies would pass that money along to their workers. Mr. Trump's efforts to boost paychecks is also only a temporary order, extending only through year-end, and it doesn't cut the amount of payroll taxes workers will actually owe. Rather, his executive order creates a payroll tax "holiday," allowing companies to delay the collection of payroll taxes for four months.  Still, employees would eventually have to...
    On Thursday’s broadcast of the Fox Business Network’s “Mornings with Maria,” President Donald Trump vowed that he will cut the capital gains tax rate down to 15% in his second term. Trump said, “Well, I’ve done the payroll tax cut — you know, this is a temporary payroll tax cut, but this is a very substantial, positive jolt to the economy. I’m going to do a capital gains tax cut to 15% in second term. We’re going to get it down to 15. It’s at 21. We’ll get that down to 15%. And I’ll get that done easily. We’re going to take the House.” Follow Ian Hanchett on Twitter @IanHanchett
    By Aamer Madhani, Josh Boak and Ricardo Alonso-Zaldivar | Associated Press WASHINGTON — President Donald Trump’s push to cut Social Security payroll taxes for the rest of the year — and even arguing for a permanent cut — would do little to bolster the coronavirus-battered economy in the short term and could destabilize long-term funding for benefits that millions of Americans depend on. Trump this week said that he could eliminate the tax if he is reelected without undercutting the retirement program or greatly adding to the deficit, arguing that economic growth would offset the revenue losses. “At the end of the year, the assumption that I win, I’m going to terminate the payroll tax, which is...
    By AAMER MADHANI, JOSH BOAK and RICARDO ALONSO-ZALDIVAR, Associated Press WASHINGTON (AP) — President Donald Trump’s push to cut Social Security payroll taxes for the rest of the year — and even arguing for a permanent cut — would have little impact bolstering the coronavirus-battered economy in the short term and could destabilize long-term funding for benefits that millions of Americans depend on. Trump this week said that he could eliminate the tax if he is reelected without undercutting the retirement program or greatly adding to the deficit, arguing that economic growth would offset the revenue losses. “At the end of the year, the assumption that I win, I’m going to terminate the payroll tax, which is another thing that...
    WASHINGTON (AP) — President Donald Trump’s push to cut Social Security payroll taxes for the rest of the year — and even arguing for a permanent cut — would have little impact bolstering the coronavirus-battered economy in the short term and could destabilize long-term funding for benefits that millions of Americans depend on. Trump this week said that he could eliminate the tax if he is reelected without undercutting the retirement program or greatly adding to the deficit, arguing that economic growth would offset the revenue losses. “At the end of the year, the assumption that I win, I’m going to terminate the payroll tax, which is another thing that some of the great economists would like to see...
    Democrats criticized President Donald Trump for an executive order that created a payroll tax holiday from Aug. 1 through the end of the year, but they praised former President Barack Obama when he instituted similar tax cuts. House Speaker Nancy Pelosi said that she agreed with Republican Nebraska Sen. Ben Sasse that the president’s executive orders were “unconstitutional slop.” “I associate my remarks with what the senator says, they’re ‘unconstitutional slop,'” Pelosi said Sunday on CNN. “Right now we want to address the needs of the American people. As my constitutional advisers tell me they’re absurdly unconstitutional.” (RELATED: GOP Sen. Ben Sasse Calls Trump’s Executive Orders ‘Unconstitutional Slop,’ Sparks Backlash) However, when a payroll tax cut extension was passed under...
    He also pointed to a manufacturing boom during the coronavirus pandemic, but there isn't one. A look at some of his economic claims: TRUMP: "At the end of the year, the assumption that I win, I'm going to terminate the payroll tax ... We'll be paying into Social Security through the General Fund." THE FACTS: Trump, in effect, has endorsed defunding Social Security by not providing an alternative source of revenues. The risk is that this could destabilize an anti-poverty program that provides payments to roughly 65 million Americans. It also could force people to cut back on the spending that drives growth so they can save for their own retirement and health care needs if they believe the government...