The U.S. Chamber of Commerce, National Retail Federation and the National Association of Manufacturers, among others, urged policymakers to return to negotiations instead on a fixed coronavirus relief package in Congress.
“Many of our members consider it unfair for employees to make a decision that would force a major bill on them next year,” they said. “It would also be unworkable to implement a system where employees make this decision.”
“Therefore, many of our members will probably refuse to carry out proposals.”
A Treasury Department spokesman did not immediately respond to a request for comment.
The letter comes as the department races to fill in the details of Trump’s presidential memorandum, issued 10 days ago.
Frustrated with gridlock in Congress, and hoping to boost the economy ahead of the November election, the president has postponed until next year the deadline for paying workers ‘half of the Social Democrats’ 12.4 percent tax Security. Trump does not have the power to eliminate the tax – only Congress can do that – but he bets lawmakers will eventually step in and say goodbye to the tax bill.
Many companies are envious of the plan, in part because it comes with some financial risk for them. They would potentially be on the hook for reimbursing deferred taxes for workers who quit later, for example. It would probably be difficult to manage.
Mnuchin said the plan would be optional for businesses.
“We hope Congress and the administration come together in a way that supports workers instead of taxing hard-working Americans next year with a large tax department,” the business groups wrote.
