Trump Signs 4 Executive Orders, One Requires States Pay 25% of the Cost

Mish

Trump signed an executive order today after talks with Democrats broke down.

Trump Takes Matters Into His Own Hands

Student Loan Relief

Expanded Unemployment Benefits

Trump authorizes an extra $400 per week. "It wasn't their fault, it was China's Fault."

Protection From Evictions

Eviction protections applies only to government loans. Taxpayers are on the hook.

The WSJ reports "A White House spokesman said the agencies were considering measures to prohibit evictions of any tenants due to the pandemic."

If so, that openly invites people not to pay with property owners are on the hook. It's bad policy. 

$400 or $300 Weekly?

Of the extra $400, Trump said the Federal government would pick up 75% of the cost. 

That means it's really $300. 

It's unclear how states will respond. It's also unclear what happens if cash-strapped states don't have the money.

How Convenient

The extra benefit only goes to December 6. The election is Tuesday November 3.

After the election, would Trump really give a damn? 

The payroll tax cut lasts until December 31.

Unconstitutional?

The following snip courtesy of the Wall Street Journal.

“This is blatantly and absurdly unconstitutional,” Rep. Jamie Raskin (D., Md.) said of the president’s actions on unemployment benefits and the payroll tax. “The president is literally trying to steal away the powers that Congress has over spending and taxing.”

The tax deferral is legal under a tax code section that gives the administration the authority to pause tax deadlines after a presidential disaster declaration. It is the same law the government used to delay the April 15 tax-filing deadline to July.

The payroll tax change doesn’t change the underlying obligation, which means that workers, and perhaps employers, would still be on the hook for the taxes eventually. Mr. Trump said he would press Congress to turn the deferral into an actual tax cut.

It is far from certain that employers would actually stop withholding and submitting the payroll taxes. That is because they may be concerned about having to withhold more taxes from workers next year, or about being stuck with the obligation themselves.

How Will States, Employers, Democrats Respond?

Although the payroll tax cut is legal, not even the Republicans supported it. Moreover, it creates such a looming liability that employers may not go with the program.

The rest of Trump's measures are more than a bit questionable constitutionally.

We find out how the states and Democrats respond shortly.

Mish

Comments (98)
No. 1-26
PecuniaNonOlet
PecuniaNonOlet

The big news is that Trump is effectively cutting social security and medicare since that is where the payroll tax goes. Trump also said if re-elected he would make the cut permanent thereby effectively stating he will end social security and medicare as we know it. You boomers happy with that?

SDR Bug
SDR Bug

Been wondering if McConnell and Trump planned this long ago. Senate stonewalls legislation and runs out the clock knowing Dems will play hardball. Now they can try shoring up Trump's viability while Biden is in hiding.

Sechel
Sechel

Really questioning the legal advice Trump is getting. Perhaps Trump knows it gets overturned but is only looking towards November

Realist
Realist

It’s the same story over and over. Let’s focus on the pandemic’s effect on the economy rather than the pandemic itself. Let’s keep pouring money down into this bottomless hole.

Why doesn’t he sign an executive order mandating social distancing and masks? Why can’t he follow the examples of countries that have reduced cases and deaths by over 90%?

Today’s numbers

Cases:Deaths

US 54,199:976

Canada 236:6

Italy 347:13

Germany 581:7

Singapore 132:0

Austria 82:1

Jojo
Jojo

Trump is just trying to goad Congress into putting a plan on the table. Then he will sign it and claim credit. Everyone should know the Trump playbook by now!

tokidoki
tokidoki

Stupid Trump should have offered 10K WEEKLY with States picking up 97%. Then he'll get to blame the Governors.

Trump is clearly slipping.

Stuki
Stuki

"The WSJ reports "A White House spokesman said the agencies were considering measures to prohibit evictions of any tenants due to the pandemic."

If so, that openly invites people not to pay with property owners are on the hook. It's bad policy. "

More like the first, and only so far, evidence of Trump's vaunted 4d chess.

THE biggest problem facing America, pre as well as post covid, is excessive asset, particularly real property, valuations. And hence rents. Anything which brings those pure drags on the economy down (up to, and including, how it was brought down in the 30s and 40s) is ultimately nothing but a good thing. Just as the late 40s, 50s and 60s would not have been possible without the 30s and 40s reset, neither will America ever grow again, until the current drags are shaken off.

Herkie
Herkie

Total disregard for the appropriations clause of the constitution, a stab straight to the heart of the separation of powers, the end of checks and balances. This is nothing short of a coup d'état. Next up an executive order delaying the election.

The democrats answer? A lawsuit. Wow that will be really effective against Tsar Vladimir who is now our de facto leader. Because Trump is his personal buttboy and they both are president for life now.

So we knew this 4 years ago, if the end of term one looked bad for reelection there just would not be an election. Even if they go through the theater of a vote it will be tallied in Moscow.

Herkie
Herkie

I do not think ANY of you are understanding what has happened. This was not a Trumpian power grab for political theater in the run up to the vote to make other parties look bad. This was an actual coup.

Anna 7
Anna 7

Remember: Keep voting for Republicrats! Don’t waste your vote on independents or 3rd-party candidates!

/s

Augustthegreat
Augustthegreat

The Destroyer-In-Chief is trying to buy votes with people's own money. that must be 6D chess! But then again why $400 instead of $100k per week and order the states to come up with that money?

Casual_Observer
Casual_Observer

Can Trump abolish the income tax ?

TimeToTest
TimeToTest

Does anyone not see what is going on?

Trump is forcing democrats to talk about how Trump can’t give people money. Regardless of the legality of this the message is clear. Trump can’t give you free stuff, only we can and we are at home for summer break.

It’s a win for him in so many ways. He is not as dumb. Who though undoing years of corruption would be easy? You didn’t think they would fight back?

Sechel
Sechel

David Gergen writes:

My suspicion is that Trump secretly wanted the virus talks to fail so he could take center stage, stir up a distracting controversy & create an issue for the campaign.

wendmink
wendmink

Why are we still counting for? The virus hits one cell and the body fights it off or it doesn't.

Facts:

350,000,000 Americans, 5,000,000 cases, 1.42%

350,000,000 Americans, 162,000 deaths, .00046%

The flu kills more than that.

The virus is real, lying Fauci is not.

Cancel WON. The soul of America is loss forever

Herkie
Herkie

"The payroll tax cut lasts until December 31."

AHEM, Mish, this is NOT a payroll tax cut at all, it is a DEFERRAL. The difference is that the taxes were not lowered only deferred till after the election when those taxes will be collected. That will slam paychecks as repayments come due. That is the only way he can even remotely argue his authothrity to do this, he is not changing the law or cutting taxes, just deferring, or rescheduling if you prefer, the payroll taxes.

See: "Sec. 4. Tax Forgiveness. The Secretary of the Treasury shall explore avenues, including legislation, to eliminate the obligation to pay the taxes deferred pursuant to the implementation of this memorandum."

So, they end current payment of payroll taxes through the election and then Mnuchin will look at ways to make the deferral permanent and require no recapture which he absolutely will not find because it would be bald face illegal. American workers will then get a particularly nasty surprise in their pay packets come January.

And what happens to those who are laid off at the end of the year, for example census workers? They go on UI only to find their compensation reduced for repayment of the payroll taxes. Ah what a freaking circus.

Quatloo
Quatloo

This Executive Action is very clever, a lot like DACA was for Obama. In both cases, lots of money is given away to sympathetic people in action that will have the support of most people. Trump can say, as Obama did, that “congress wouldn’t act, so I did”.

What do the Democrats do? Go to court to fight student loan relief? File a lawsuit to stop additional unemployment benefits? Fight Trump to allow evictions to go forward?

Carl_R
Carl_R

So, are these Constitutional? Probably. He probably has the power to defer student loan payments and the date at which payroll taxes must be paid. Are they creating a bigger problem for later? Probably. Congress will be under pressure to avoid the possibility that everyone owes a huge amount of taxes on April 15 next year.

The good things about these Executive orders is that none of them benefit the ultra-wealthy, and none of them bail out poorly run cities and states. I strongly feel that cities and states should deal with their own messes, so I think these are a huge improvement over the Democratic bill.

TonGut
TonGut

It’s China’s fault, not the tenants, so let’s stick to the landlords. Completely irrational. Plus, Landlord/tenant relationship is rooted in contract law. If executive power is that absolute we are going to have a complete debacle before his term ends.

Curious-Cat
Curious-Cat

Trying to predict what will happen under this mess is like the ancient Roman's practice of reading sheep's entrails to determine the auspices. "I've never seen the liver of a ewe so clear. You could practically see through it!"

Dodge Demon
Dodge Demon

Trump needs to name this the National Recovery Administration, NRA. We will know soon after whether any pictures of Roberts on Epstein Island exist.

Sechel
Sechel

Never seen a press conference with a studio audience cheer section

Montana33
Montana33

It’s not a payroll tax cut! It’s an extension of time for employers to file their payroll returns. Every employee still owes 100% of this tax and will still be charged every payday. It just lets their employers hang on to the $. People will be mad when they realize there is NO tax cut.

Montana33
Montana33

Every State is massively cutting costs now so I don’t think any of them will pick up extra unemployment costs. Trump did this knowing that no State would offer it so he can blame all the governors. Just like the virus. He blames the governors.

debracarter
debracarter

So, the gvmt, is going to give us a guarantee income, if SOC SEC goes astray?, But, that's not going to stop rising costs, ex: rent, food, cost of living! Is that in the plan, & did anybody think if it?

Loosethedogs
Loosethedogs

I have started to LMAO whenever I read the words "unconstitutional". The only reason civilization exists is because of laws that citizens and government respect and enforce. It's been a long while now since the SES loaded courts including FISA courts have given a shit about the law. The whole judiciary has become a political bad joke and I mourn the demise of our republic. This is NOT a partisan issue.