The US president Donald Trump is pushing the US congress for the inclusion of a payroll tax cut in the next economic relief package. However, there are mixed responses of people on this very subject, and many Republicans, as well as Democrats, are not supporting this initiative.
A lot of economists have expressed that it is not the optimal way to boost the economy and it doesn’t benefit the needy people. The motive of implementing a payroll tax cut is to take out some amount from workers’ paychecks in order to provide funding to many federal programs namely Social Security and Medicare.
The implementation of a payroll tax cut was made in the year 2011 after the financial crisis and it led to a reduction in the employees’ tax by 2 percent. Many experts have admitted that the implementation of a payroll tax cut will not offer benefits to unemployed and retired American people.
Hence, questions are being raised on this move of the US president and it is said that it would not be beneficial for every employer. By ensuring the pay tax cut for employers, it will be possible to help those struggling to pay rent and bills. But if we see its overall effect then it is not a robust move by the US president.
Even it is speculated that the implementation of this move will lead to a reduction in federal revenue. A lot of employees and employers are using ways to find tax online and they are using online tools for it. And the use of online w2 finder 2020 is being made by employers to record employees’ income and the already paid taxes. The announcement of this move has brought a smile on the faces of some employees who are seeing it as a means to reduce their tax.