Deep Pockets

The WSJ reports Employers Cast Wary Eye on Trump Payroll-Tax Deferral

The president wants employers to stop collecting the 6.2% levy that is the employee share of Social Security taxes for many workers, starting Sept. 1 and going through the end of the year. But his move, announced in a memo Saturday, doesn’t change how much tax employees and employers actually owe. Only Congress can do that.  

Employers’ biggest worry: If they stop withholding taxes without any guarantee that Congress will actually forgive any deferred payments, they could find themselves on the hook. That is a particular risk in cases where employees change jobs and employers can’t withhold more taxes from later paychecks to catch up on missed payments.

“The Internal Revenue Service will come to that deep pocket” of employers to collect payroll taxes, said Marianna Dyson, a lawyer at Covington & Burling LLP in Washington who specializes in payroll taxes. “Liability is going to stick to the employer like flies to flypaper.”

Dead on Arrival

With much brouhaha Trump signed a Series of 4 Executive Orders, One Requires States Pay 25% of the Cost.

Even Republicans are critical. 

Recall that Senator Sasse Blasts Trump's Executive Orders as "Unconstitutional Slop"

OK, Trump had the right to defer payroll tax collection, but that is it. No companies will do along.

It's back to the drawing board, and negotiating room where 20 Republicans Senators are against Trump's the tax cut idea.


Deep Silliness: Half-Right vs Trump-Wrong

Economist Robert Shiller accurately describes why Trump tariffs are wrong, Then Shiller dives into deep silliness.

House Issues Subpoena for Trump's Tax Returns: Another Witch Hunt?

House Ways and Means Committee Chairman Richard Neal (D., Mass.) issued subpoenas seeking President Trump’s tax returns.

Starve the Beast: Trump's Tax Cut Better for Businesses, Worse For Everyone Else

Corporate America is doing far better than most expected under Trump's tax cuts. But the cuts didn't pay for themselves.

Payrolls Expand by Whopping 312,000 as Unemployment Rate Rises to 3.9%

Nonfarm payrolls jumped by 312,000 and the unemployment rate rose by 0.2 PP as the labor force expanded by 419,000.