“The sudden influx of money, unexplained, will likely be spent very quickly by many of them, with little regard for later consequences. The idea flopped with Republican and Democratic lawmakers alike, despite the president’s threats to veto any economic recovery package that did not include a payroll tax cut. Instead, lawmakers voted in March to allow companies to delay payment of their half of payroll tax liabilities for the year, with the money due in installments in 2021 and 2022. Stymied by Congress, and urged on by some of his outside advisers including the conservative economists Arthur B. Laffer and Stephen Moore, Mr. Trump signed an executive action on the payroll tax in August. Last month, Treasury officials issued rules clarifying that companies could choose whether to withhold employees’ payroll taxes from September through the end of the year.

Source: New York Times September 11, 2020 18:05 UTC