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Trump Administration Still Pushing for Payroll Tax Cut

Posted on July 16, 2020

The White House is continuing its campaign for a payroll tax holiday to be included in the next coronavirus relief package, as both chambers are set to return to Washington next week.

Vice President Mike Pence told reporters on a call July 15 that President Trump has made it clear that he believes that a payroll tax cut is necessary for the next round of legislation, which Congress is expected to negotiate later this month.

“A payroll tax cut would put money in the pockets of working Americans,” Pence said. “It would also make more resources available for businesses to continue to hire.”

The administration plans to ensure there’s support for families, businesses, states, and schools in the next bill, Pence said, adding that “we’re not going to wait until the second term to fight for tax relief for working families.”

Pence said he believes the tax cut would help accelerate the economy’s recovery from the effects of the pandemic.

Trump has been calling for a payroll tax cut for workers since March, but neither Republicans nor Democrats in Congress have been particularly enthusiastic about the idea, and they haven’t included it in previous rounds of relief.

Mark Warren, chief tax counsel for Senate Finance Committee Republicans, said in May that a payroll tax cut was still on the table for the next package, but noted that it would be a challenging benefit to implement.

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