August 20, 2019

CBS News: Why Trump’s Payroll Tax Cut Wouldn’t Do Much for the Economy

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There’s also a political risk in saying the economy needs a spark only 18 months after the Republican party passed one of the largest tax cuts in U.S. history.

“The Trump administration said their 2017 law was a middle-class tax cut. So when they’re saying, ‘Now we need a cut to help consumers,’ it’s an admission that the 2017 law did not do that,” said Steve Wamhoff, director of federal tax policy at the left-leaning Institute on Taxation and Economic Policy.

According to ITEP, 70% of the 2017 tax cuts went to the richest 20% of households. Because the payroll tax is a flat tax, it would hit more middle-class people, but not perfectly — nearly half of it would go to the top 20%. Read more



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