Trump pitched 0% payroll tax rate for the rest of the year, White House official says – CNBC

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Trump met with Senate Republicans earlier Tuesday afternoon, but they didn’t reach a resolution on a potential response. Still, the president sounded an optimistic note.

“Be calm. It’s really working out,” he said after the meeting, referring to the government’s response to the outbreak. “A lot of good things are going to happen.”

Trump, who faces a bitter reelection fight this year, mentioned the possibility of a payroll tax cut Monday evening. He has said he wants to help out the airline and cruise industries, as well, while fear of the virus and travel restrictions have crushed demand for tourism and business travel.

Republican senators have reportedly been skeptical of a payroll tax cut, which has been pushed by Peter Navarro, one of Trump’s leading advisors on trade policy.

Payroll taxes are paid by employers and employees. They are used to fund Social Security, Medicare and other government programs. For Social Security, employee wages are subject to a 6.2% tax up to $137,700. Workers pay a Medicare tax of 1.45%. Employers match what employees contribute by kicking in 6.2% toward Social Security and 1.45% for Medicare.

Read more: What a payroll tax cut would mean for your pay

The discussion about potential payroll tax reductions comes as Trump has come under fire for saying that he would consider cutting entitlements. His potential Democratic rivals in November’s election, particularly Sen. Bernie Sanders, have hammered Trump for his remarks on entitlements.

The White House is also considering federal assistance for the shale industry as oil prices have tanked in recent days due to a price war between Russia and Saudi Arabia. The administration doesn’t want it to be perceived as a bailout, the official said.

At least 28 people have died from the coronavirus in the U.S., while at least 805 people have been infected. Worldwide, more than 118,000 people have been infected, resulting in at least 4,262 deaths.

Source Article from https://www.cnbc.com/2020/03/10/trump-pitched-0percent-payroll-tax-rate-for-the-rest-of-this-year-white-house-officials-say.html

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