Trump Pursues Payroll Tax Cut as GOP, Democrats Look Elsewhere
- Democrats aim to send more direct payments to individuals
- Republicans look for low-cost options to reopen economy
U.S. President Donald Trump speaks during a meeting at the White House on April 29.
Photographer: Stefani Reynolds/CNP/Bloomberg
A big cut in the payroll tax is high on President Donald Trump’s wish list for the next coronavirus response bill, but the idea is getting the brushoff from newly-cost-conscious Republicans and Democrats who would rather send aid to people who aren’t getting a paycheck.
Trump has backed a payroll tax cut since long before the pandemic brought the economy to a halt and threw millions of people out of work. He suggested the idea in August 2019 as a way to boost the economy and tried to include it in the $2.2 trillion stimulus bill passed in late March. Congress instead opted to send $1,200 individual payments to middle- and low-income adults instead.