US Chamber asks Treasury to clear up ‘serious concerns’ over proposed tax cuts

The U.S. Chamber of Commerce on Wednesday asked the Treasury Department to answer “important questions” by President TrumpDonald John TrumpDemocrat calls on White House to take back ambassador to Belarus nominated TikTok to collect data from mobile devices to track Android users: Peterson report wins Minnesota House primarily in crucial swing district MOREthe executive order allowing a deferral of tax liability to be allowed.

In a letter from Wednesday to Secretary of Treasury Steven MnuchinSteven Terner MnuchinOn The Money: McConnell says it’s time to start coronavirus talks again | New report finds majority of Americans support merger moratorium | Corporate Bankruptcies in Time for 10-Year-Old McConnell: Time to Renew Coronavirus Talks Employers of Color Demonstrate Democratic Leadership to Protect Inferior Communities in Coronavirus MORE Talks, the largest lobby group for U.S. companies, asked the department to clear uncertainty about how Trump’s order could be implemented by companies, their employees and payroll processors.

“While the recently issued Executive Order (EO) on the deferral of tax evasion is well intended to provide relief, it has raised serious concerns for both employers and employees,” wrote Caroline Harris, Vice President of the House of Tax Policy and economic development.

Trump this week signed an order directing the Treasury Department to wait for the payment of social security taxes collected from the wage payments to workers by the end of the year for those under $ 100,000 make. The start date for the planned postponement period is stated as 1 sept.

Trump and some law-abiding economists have cited tax evasion as an effective way to boost the economy by giving workers more wages for housing. The president had repeatedly called for a tax cut in earlier and pending coronavirus bills, but was blocked by opposition from both Democratic and Republican lawmakers.

While Trump’s executive order may be a back door to securing the proposed tax cut, the lack of clear guidance on how it would be carried out, who would be responsible for doing so and what would happen with deferred payments has major concerns. legislators and tax experts. The order also raises many questions about how to deal with bonuses, the pay of seasonal workers and employees who leave for the grace period, Harris wrote.

The uncertainty raised by these issues, as well as many other issues not listed here, only exacerbate the challenges facing payment processors and compliance departments, who are already struggling to meet this EO in a very short period of time. implement, ”she wrote.

Harris also cited concerns about the “substantial tax liability for workers at the end of the pay period” which “threatens to create serious difficulties for employees who will incur a large tax at the end of the pay period.”