$1600/ Month Unemployment Extension, 7.5 % Payroll Tax cut – Confirmed by Trump

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In a press conference, President Trump has announced that he has signed 4 executive orders which are going to affect all individuals, the unemployment insurance benefit which the congress failed to reauthorize but president trump has very controversially signed an executive order extending the unemployment insurance benefit, the new benefit announced is of $ 400 per week remember this benefit is on top of the benefits provided by the states. So one can actually take home an additional more than $1600 per month on top of whatever state benefit provides.

President Trump said that while it will help a lot of people to  have an additional boost , the Republicans wanted to create an incentive to go back to work and therefore they didn’t want to extend the $600 per week of unemployment insurance. The interesting fact is that the executive part of the government the part President Trump controls doesn’t actually have any funds to actually go and spend on extension of unemployment insurance, they need authorization from congress to do so.

President trump said that there is leftover money from the cares act that was is given to states, states can go ahead and use it to actually forward this additional benefit. He further said that there os significant money that has been unspent and 75 percent of the cost of additional $400 per week is going to come directly from that unspent money that the federal government currently has which was meant for the cares act and the remaining 25 percent will come from the states themselves. At present it looks like the new unemployment insurance benefit might be extended until the end of the end of the year. It is the election year and President Trump wanted to be seen as having done something about the unemployment insurance issue.

Executive orders have been generally expanded over the years by Presidents but its never been done in this way and each successive president seems to expand the power of the executive branch of the government now reauthorizing a program which itself is going to cost a lot of money is itself very controversial and seems like it is going to be praised by all the beneficials at large, and if democrats sue in order to stop the executive order for pushing for this legislation, the democrats will be perceived to be the ones obstructing the unemployment insurance extension and they will be viewed in negative light, the general public will see them as individuals who don’t actually want to extend unemployment insurance because at  present people have a little certainty they are going to have financial aid in the current crisis.

The Second Executive order that has been signed by President Trump is the Payroll tax suspension, which means that if you currently have a job the payroll tax suspension could give you a boost of seven and a half percent on your paycheck , Payroll tax suspension is legally more on solid footing for the president and this is because one can suspend the payroll tax using the same legal framework as suspending the collection of income taxes which we actually had earlier this year.

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The Payroll tax suspension is actually a contribution of seven and a half percent of the payroll tax and the contribution of seven and a half percent from the employee, It looks like the the employers are going to be the ones who are able to stop contributing for the payroll tax and pass along if they choose that additional benefit to their employees, the catch here is that it is going to be just a suspension of paying payroll tax if they still have to pay it by the end of the year but president trump has actually said that the suspension will be applicable till November 3 because that is the election date

President Trump said that if he wins this election he is actually going to push to eliminate all the payroll taxes that would have had to be paid after they were deferred, He also said that he wants to make the payroll tax elimination permanent , this would be the single biggest development for most people that has occurred in the last 50 years. The payroll tax is used to fund mainly things like social security so if President Trump manages to eliminate the payroll tax the question will be how will the federal government fund programs like social security in the future.

A lot many employed people have questioned Trump’s decision of providing Unemployment Insurance benefit to the unemployed, they claim that its kind of unfair if one has a job and has been working the whole time and didn’t receive additional unemployment insurance benefit and haven’t gotten that additional stimulus.

There is also a little bit of quirks that needs to be worked out for example a lot of payroll processors said that they can’t actually go ahead and redo the payroll system with efficiency in the next few weeks but what they might be able to do is adjust the tax withholding to make it net the same but again that is esoteric, The point is your paychecks could theoretically be increased because of this new signed legislation and this will be radioactive to August 1 but limited to those employees who are making a hundred thousand dollars per year or less.

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The Third executive order signed is Student loan relief, If someone has a federally backed students loan his interest is already zero percent that occurred this year and it was set to expire on September 30, where one had to begin making payments again and the interest would begin to accrue again. According to the executive order President Trump has actually pushed the deadline to the end of the year.

The Fourth Executive order signed is an extension of the eviction moratorium, so if someone is part of the group of people who are protected via the eviction moratorium signed into law via the cares act, the eviction moratorium is now extended through again the end of the year. President Trump also mentioned that the government actually wants to provide financial assistance to those who are renters and homeowners. But he didn’t lay out any further details on the matter.

Now what does this mean for the continuation and the arguments between the republicans and the democrats in congress, President Trump said he hopes that they could still make a deal but for now those key pieces are still going to be moving forward importantly the stimulus check which republicans and democrats agreed to was not signed into law via the executive order instead that will have to go through the normal legislative process along with all the other provisions in the cares act that has been eliminated or want to be extended and the provisions in the heroes act, in the heels act , all those need to be negotiated by the congress but these four executive orders have now put into law at least on papers.

President Trump also said that they are going to take a hard look at income taxes and capital gain taxes, they are going to try to cut those to stir the economy and get the economy going more than it is right now.

The Biggest disagreement right now seems to be the bailout money so to speak for the state and local governments at least that is how the republicans and President Trump are characterizing the requests from the democrats to get more funding for state and the local governments.

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