Deep Pockets, the IRS, and the Huge Flaw in Trump's Tax Payroll Deferral
The WSJ reports Employers Cast Wary Eye on Trump Payroll-Tax Deferral
The president wants employers to stop collecting the 6.2% levy that is the employee share of Social Security taxes for many workers, starting Sept. 1 and going through the end of the year. But his move, announced in a memo Saturday, doesn’t change how much tax employees and employers actually owe. Only Congress can do that.
Employers’ biggest worry: If they stop withholding taxes without any guarantee that Congress will actually forgive any deferred payments, they could find themselves on the hook. That is a particular risk in cases where employees change jobs and employers can’t withhold more taxes from later paychecks to catch up on missed payments.
“The Internal Revenue Service will come to that deep pocket” of employers to collect payroll taxes, said Marianna Dyson, a lawyer at Covington & Burling LLP in Washington who specializes in payroll taxes. “Liability is going to stick to the employer like flies to flypaper.”
Dead on Arrival
With much brouhaha Trump signed a Series of 4 Executive Orders, One Requires States Pay 25% of the Cost.
Even Republicans are critical.
OK, Trump had the right to defer payroll tax collection, but that is it. No companies will do along.
It's back to the drawing board, and negotiating room where 20 Republicans Senators are against Trump's the tax cut idea.