President Trump Calls for One-Year Payroll Tax Cut in a Tweet

President Trump has recently tweeted: “The Democrats in the House should propose a very simple one year Payroll Tax cut. Great for the middle class, great for the USA!” However, it is unlikely that House Democrats will listen to his remarks. According to Fox Business, top White House officials were reportedly considering temporary payroll tax cut last summer.

“Temporary payroll tax cuts haven't worked out the way presidents hope they will. Both [George] W. Bush and [Barack] Obama had them, and each were disappointed,” tax expert Ryan Ellis said. “People don't realize they get it, or they don't believe it. It's a similar phenomenon to how people don't believe they got a Trump tax cut when almost everyone did. Your direct deposit goes up and down a lot, and people don't read pay stubs at all, much less compare them over time.”

https://twitter.com/TRUMPMOVEMENTUS/status/1234733061897695232

Fox Business reported that the president’s statement comes as the administration shares snippets of a possible middle-class tax cut plan. According to National Economic Council Director Larry Kudlow, the administration is working to introduce such a plan by September.

“What ends up happening is that people treat this as a one-time windfall, and end up saving the money or paying down debt,” Ellis said. “That's fine, but proponents often tout a Keynesian stimulus effect. Never happens.”