Wednesday, August 21, 2019

Payroll tax cut

Possible good news for low and middle income people. Trump is considering a cut in payroll tax. Employers and employees each pay in 7.65% in payroll tax and that brings in $1.2 trillion dollars. If the employer contribution remained and the employee contribution was eliminated it would mean a $600 billion dollar tax cut primarily going to the lowest income group. The problem with this approach is that the money goes directly to the people and not through the hands of the politicians. This means the people get to spend the money as they wish instead of bureaucrats in Washington offering handouts for votes. Trump may propose this but it is not likely to pass through the house.

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