The House of Representatives is joining large companies and some red states in rejecting Trump's payroll-tax deferral for its employees
Two crossed lines that form an 'X'. It indicates a way to close an interaction, or dismiss a notification.The US House became the latest employer to spurn Trump's payroll-tax holiday, which is now in effect until December 31.
The lower chamber joins several large companies and at least two red states in rebuffing the directive, citing difficulties around carrying out the deferral and the prospect of getting stuck with large tax bills. "The fact that few employers would take this up was totally foreseeable — the scheme just didn't work," tax expert Seth Hanlon told Business Insider.Visit Business Insider's homepage for more storiesThe House of Representatives on Friday became the latest employer to reject President Donald Trump's payroll-tax deferral for its employees. It joins several large companies and some red states that have already spurned the measure. The sparse involvement from big employers threatens to inflict a heavy blow on a measure the Trump administration touted as an effective way to get money to households and boost spending. In an email to employees, the House's Chief Administrative Officer Philip Kiko said the lower chamber "determined that implementing the deferral would not be in the best interests of the House or our employees."At least one House Republican, Rep. Kevin Brady, had announced on Thursday he was deferring the tax for some of his staff,"The fact that few employers would take this up was totally foreseeable"to implement a payroll-tax holiday through December 31. Employees earning under $4,000 every two weeks — or below $104,000 yearly — won't have to pay the 6.2% tax out of their paychecks, which is used to fund Social Security.Trump's directive has triggered significant criticism from business groups and tax experts. Several large employers have rebuffed taking part in the holiday, such as CVS Health, United Parcel Service, Home Depot, and JP Morgan Chase,"It's needless complication for virtually no benefit for employees and a lot of risk on employers," Seth Hanlon, a senior fellow at the left-leaning Center for American progress. "The fact that few employers would take this up was totally foreseeable — the scheme just didn't work."
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