July 24, 2020

Motley Fool: 3 Reasons Why Trump’s Payroll Tax Cut Won’t Be in the Senate’s Coronavirus Stimulus Bill

media mention

With a complete payroll tax cut — meaning, no Social Security or Medicare taxes taken out of paychecks at all — 64% of the benefit would be reaped by the country’s wealthiest 20%, according to the Institute on Taxation and Economic Policy.

Leaving out the top 5% of earners from that top quintile (their savings would be much higher) the 15% of workers earning between $118,700 and $263,000 a year would shave an average of $3,750 off their tax bills for 2020. By contrast, the poorest 20% of Americans — those with incomes under $24,200 — would average about $250 in tax savings. Read more