Marc Gerson Comments on Payroll Tax Deferral in The Hill
"Five Things to Know About Trump's Payroll Tax Deferral"
Marc Gerson, former majority tax counsel to the U.S. House of Representatives Committee on Ways and Means, commented on President Trump's payroll tax deferral. Under guidance issued by the Internal Revenue Service employers can stop withholding the Social Security tax from employee paychecks through the end of the year. However, employers will be required to recover that money from their employees by increasing the amount of tax withheld from employee paychecks from January through April 2021 unless the deferred taxes are forgiven. The president has said he wants the postponed taxes forgiven, but that would require Congress to act. Gerson stated that the amount of pressure on Congress to forgive the deferred taxes depends on how many people will see smaller paychecks early next year, saying "[t]he real political pressure point is the magnitude of employees facing reduced paychecks in the New Year." He added that as the time to pay back the deferred taxes approaches, the pressure on Congress will increase.