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White House Tries to Set Record Straight on Future of Payroll Tax

Posted on Aug. 14, 2020

The payroll tax isn’t going anywhere anytime soon, according to White House press secretary Kayleigh McEnany, despite some recent statements by President Trump suggesting that he may have thought otherwise.

Since signing his August 8 memo directing Treasury to allow for a temporary deferral of employee payroll taxes, Trump has stated several times that he would like to see his vision for a payroll tax holiday become permanent.

When asked by reporters August 9 if he wanted a permanent payroll tax cut or just a temporary one, Trump responded, “It may be permanent. We’re looking into it.” He then added that at the end of the year, he would make a decision about whether to extend the deferral period and whether to “[make] it permanent.”

At a press briefing the following day, Trump noted that he had signed the payroll tax memo “with the understanding that after the election . . . we will be ending that tax. We'll be terminating that tax.” He later repeated that sentiment, remarking that the payroll tax “is a big deal for people,” and that “we intend to terminate it at the end of the appropriate period of time.”

And at an August 12 briefing, Trump said yet again that, if re-elected, he would terminate the payroll tax. “That will mean anywhere from $5,000 to even more per family, and also great for businesses and great for jobs,” he said.

What Trump meant when he said all that, however, is that he just wants permanent forgiveness of taxes that are deferred under the memo, according to McEnany, speaking at a White House briefing August 13.

“The president is very clear on this matter that he wants a permanent forgiveness of the deferral. That's as far as he's gone,” McEnany said. In the meantime, she continued, Trump maintains an “unwavering commitment to Social Security” and ensuring that it remains fully funded.

Follow Jonathan Curry (@jtcurry005) on Twitter for real-time updates.

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