Trump proposes to reduce the tax on wages

12 months ago

US President Donald Trump is proposing a 7.6% wage tax cut. For this purpose, he considers possible incentives for employers who are willing to develop the economy

White House economic adviser Larry Kudlow told about the president’s plans.

Trump expects that the wage tax reduction will mitigate the damage from the coronavirus pandemic.

“We have offered tax holidays on wages so that people who return to work would receive a 7.6% reduction in wage tax, so that their wages would increase after taxes,” Kudlow said.

Such tax cuts will have a positive impact on poor families. That is, in fact, they will receive more income because they will pay lower taxes.

But in order to realize the tax cuts, employers must provide a place for those who lost their income during the pandemic.

At the same time, the U.S. Tax Fund noted that if the country has such tax holidays from April 1 to the end of the fiscal year, the budget will lose 950 billion dollars.

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