1.3 million active-duty troops will have their payroll taxes deferred under Trump's controversial order — and they can't opt out
to enact a payroll tax holiday that temporarily suspends the collection of a 6.2% Social Security levy from workers' paychecks through the end of the year. It affects people earning below $104,000 annually.
Trump has called on Congress to absolve the payments, but that's unlikely since lawmakers in both parties oppose pulling money going into Social Security, an increasingly cash-starved safety net program. The directive has sparked substantial criticism from scores of business groupsRecent guidance from the IRS said the money has to be repaid by April 30.
Democrats fiercely criticized the measure. Rep. Don Beyer, vice chair of the congressional Joint Economic Committee, attacked the policy as a politically motivated decision that would set back troops' pocketbooks. "The President's order will give the illusion of pay increases until after the election, and then require service members to pay the money back with double tax withholding," Beyer said in a statement on Tuesday. "This is a disgraceful way to treat those who serve and sacrifice to keep us safe, and Trump's trickery is obviously designed to help his campaign."Sign up now for Insider Today for regular insights and analysis from Henry Blodget & David Plotz.
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