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It seems like this order is of dubious legality - so I am assuming employers are going to continue to collect it until it is confirmed
Exactly, but the deferral is being sold as a direct and immediate benefit for workers.
Now Dr. Peter Navarro (Assistant to the President and Director of the Office of Trade and Manufacturing Policy) says on “Meet the Press” that the payroll tax deferral is a “significant” wage hike for employees. There is nothing in the EO that compels employers to pass the payroll tax deferral on to employees. Even if an employer did, we would have to pay it back at some point.
Agreed - as currently written. But it does say in the EO they will seek to have it forgiven instead of just deferred
This also only applies to employees that earn $4k or less biweekly.
https://www.whitehouse.gov/presidential-actions/memorandum-deferring-payroll-tax-obligations-light-ongoing-covid-19-disaster/
I think EO is illegal and won’t be allowed to happen.
But the OP isn’t making an honest argument. Half the payroll tax comes out of the employer’s pocket and half comes out of the workers’ pocket. Even if the employer keeps their half, workers would get an effective raise on their half.
Personally, I think fiscal policy should be focused on the unemployed and backstopping low income workers who have faced uneven income the last few months. The payroll tax holiday isn’t precise enough to do that will primarily benefit the middle class and employers. Enhanced unemployment and more targeted stimulus checks make more sense to me.
Well, that’s part of the problem. The EO is so poorly written you don’t know what you can actually do with the money.
It’s a silly idea that doesn’t do much good. And I realize it probably looks like I’m talking out both sides of my mouth. I’m just a stickler for people making arguments that actually conform to either reality or at least address the claims of the other side.
Enthusiast
Even if this EO withstands the legality scrutiny, it is just a waste of ink (or rather another reality tv show attempt to energize Trump’s base who have no idea how fiscal systems work) since the states will not be able to chip in for the $100 WH is asking them to, and employers will not stop collecting the payroll taxes from us. It was all just a show yesterday.