3 Reasons Why Trump's Payroll Tax Cut Won't Be in the Senate's Coronavirus Stimulus Bill
The COVID-19 pandemic has dominated American life since March, and it's clear that, as President Trump recently admitted, the U.S. outbreak is going to get worse before things start to get better. And as the country grapples with the brutal recession the coronavirus has caused, lawmakers are convening this week on Capitol Hill to discuss another major relief package -- one that could include provisions such as direct stimulus payments to a majority of Americans and boosted unemployment benefits to the tens of millions who have lost their jobs so far this year.
Recently, Trump has made it clear that he wants a payroll tax break to be included in whatever stimulus deal Congress arrives at. His premise is that eliminating payroll taxes for the rest of the year would put money straight into working Americans' pockets, which they could pump into an economy that's in dire need of more consumer spending. A payroll tax holiday would benefit employers as well, he asserts, and perhaps prevent further layoffs -- a worthy goal at a time when unemployment is still at historically high levels.
But the Republican lawmakers who control the U.S. Senate clearly did not agree with him. They've left a payroll tax cut out of their COVID-19 relief proposal. Here are some of the reasons why it was never really a wise idea to begin with.
Source Fool.com
