Penn Wharton Projects $870 Billion Cost for Payroll Tax Holiday

Penn Wharton Budget Model

The full payroll tax holiday proposed by President Trump would cost $807 billion, slow the economy by 0.1 percent in 2030 and by 0.2 percent in 2050, and would have limited stimulus potential because households in the bottom 20 percent of incomes would get only 2 percent of the tax cut, the Penn Wharton Budget Model said in a March 12 report.

<p>The full payroll tax holiday proposed by President Trump would cost $807 billion, slow the economy by 0.1 percent in 2030 and by 0.2 percent in 2050, and would have limited stimulus potential because households in the bottom 20 percent of incomes would get only 2 percent of the tax cut, the Penn Wharton Budget Model said in a March 12 report.</p>

<p>The full payroll tax holiday proposed by President Trump would cost $807 billion, slow the economy by 0.1 percent in 2030 and by 0.2 percent in 2050, and would have limited stimulus potential because households in the bottom 20 percent of incomes would get only 2 percent of the tax cut, the Penn Wharton Budget Model said in a March 12 report.</p>

The full payroll tax holiday proposed by President Trump would cost $807 billion, slow the economy by 0.1 percent in 2030 and by 0.2 percent in 2050, and would have limited stimulus potential because households in the bottom 20 percent of incomes would get only 2 percent of the tax cut, the Penn Wharton Budget Model said in a March 12 report.