Well, if we're going to do the math:
100k annual salary. EO that defers the payroll taxes (7.65%) from income 8/1/2020 to 12/31/2020 (assuming normal distribution, $33,333 earned in that period).
So, that is deferring $2,549.97 in taxes, for approximately 4 months, when you would file FY2020 in Jan 2021.
So, the difference between them on ~Feb 2021? 0.
Well, if you want to argue lost opportunity in interest/investments, assuming the S&P500 makes 10% annually throughout COVID (spoiler: it won't), those returns (something like 0.8% a month, 4 months, on monthly $637 deposits) ... about 30 bucks.
We going to keep complaining, on how Trump is for all intents and purposes, the only person who would have touched the payroll tax at all, for anybody?
Obligatory footnote: Trump says he wants to forgive the payroll taxes deferred when he wins Nov 3, which would be a fuck-yes moment.
Trump said permanent tax cuts to payroll, not full deferment permanently.
You do bring up a good point about the cutoff point, but my guess is the first 100K will be non deductible. If not, there would be a small mathematical window from about 93K a year to 99K a year where you would potentially make more than if you made 100K. This is only for 6 months, however. Employees who are at this cutoff point might want to ask for a tiny pay cut fir 6 months.
That's fair -- he did say he wanted to make permanent tax cuts to payroll, but really: I see that (emergency deferment of payroll vs abolishing payroll legislation) as two entirely separate concepts.
One is something he has put pen to paper already, and is kind of on the hook for to ensure it's followed up on. The other (abolishing the payroll tax) is honestly a campaign platform/issue, that is solely up to Congress and all Trump has on that is the bully pulpit.
Well, if we're going to do the math: 100k annual salary. EO that defers the payroll taxes (7.65%) from income 8/1/2020 to 12/31/2020 (assuming normal distribution, $33,333 earned in that period).
So, that is deferring $2,549.97 in taxes, for approximately 4 months, when you would file FY2020 in Jan 2021.
So, the difference between them on ~Feb 2021? 0.
Well, if you want to argue lost opportunity in interest/investments, assuming the S&P500 makes 10% annually throughout COVID (spoiler: it won't), those returns (something like 0.8% a month, 4 months, on monthly $637 deposits) ... about 30 bucks.
We going to keep complaining, on how Trump is for all intents and purposes, the only person who would have touched the payroll tax at all, for anybody?
Obligatory footnote: Trump says he wants to forgive the payroll taxes deferred when he wins Nov 3, which would be a fuck-yes moment.
Allow me to butt in.
Trump said permanent tax cuts to payroll, not full deferment permanently.
You do bring up a good point about the cutoff point, but my guess is the first 100K will be non deductible. If not, there would be a small mathematical window from about 93K a year to 99K a year where you would potentially make more than if you made 100K. This is only for 6 months, however. Employees who are at this cutoff point might want to ask for a tiny pay cut fir 6 months.
That's fair -- he did say he wanted to make permanent tax cuts to payroll, but really: I see that (emergency deferment of payroll vs abolishing payroll legislation) as two entirely separate concepts.
One is something he has put pen to paper already, and is kind of on the hook for to ensure it's followed up on. The other (abolishing the payroll tax) is honestly a campaign platform/issue, that is solely up to Congress and all Trump has on that is the bully pulpit.