On August 8, one day after criticizing Congress for not extending COVID unemployment insurance, Donald Trump signs an executive order that does more for himself (and his wealthy friends) than most Americans.
The order includes a payroll tax holiday for the rest of the year, which means workers will pay less in taxes from their paychecks but have to pay those taxes when they file in 2021. The bigger story is that Trump promises he will make the payroll tax cut permanent if he is re-elected in November.
Medicare and social security are funded by payroll taxes, so Democrats see this as an intentional effort to defund social security. There’s another explanation though.
The executive order does give unemployed citizens $300/week in federal assistance and orders states to provide an additional $100/week (which most states can’t afford to do). However, up to $44 billion will be taken from FEMA to fund unemployment insurance… during hurricane season.
Another problem: the executive order could be illegal.
The White House can also not give federal tax cuts like the payroll tax holiday without congressional approval.
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