“Many of our members consider it unfair for employees to make a decision that would impose a major tax law on them next year,” the U.S. Chamber of Commerce and more than 30 trade associations wrote in a letter to Congress and the Treasury Department. .
“It would also be unworkable to implement a system where employees make this decision,” the groups wrote, adding many of their members would likely refuse to postpone the tax.
However, only Congress has the power to actually reduce taxes so that the President can only push back their expiration date.
The letter, sent Tuesday, was signed by a wide variety of industry groups, including manufacturers, restaurants, retailers and construction companies. They called on Congress to provide tax breaks without the uncertainty of Trump’s action. Lawmakers are generally not in favor of including a tax cut in a new package.
It found that workers who made $ 50,000 a year in 2021 could pay nearly $ 1,100 in payroll taxes, while those who earned $ 104,000 could be hit with a tax return of more than $ 2,200.
The White House said the US president’s move would help with the pandemic.
“By postponing the proposed tax break, President Trump used the authorities that were available to him to give employers the opportunity to put more money in the pockets of their employees, and he encourages all employers to take advantage of this. to support hard-working Americans during this period of economic uncertainty as we end the fight against Covid-19, “said Judd Deere, a White House spokesman.
Trump’s effort this year is not the first proposed tax cut. As part of the $ 2 trillion congressional relief package approved by Congress in late March, employers could delay their 6.2% share of the Social Security tax by the end of the year.
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