March 12, 2020

Bloomberg Tax: Virus Panic Prompts Trump Call for Tax Relief

media mention

A payroll tax cut, something the administration has floated, would be an ineffective stimulus measure to combat the virus’s economic fallout, according to the Institute on Taxation and Economic Policy.

Cutting the payroll tax—a levy imposed on employees, employers, and self-employed individuals to fund Social Security—would primarily benefit higher earners, according to an analysis from the group. Specifically, half the boost from a 2 percentage point decrease would go to the top 20% of earners, and nearly a quarter of the bottom quintile wouldn’t see any benefit. Read more