US President sets wage tax at 0%, White House official says
/On Tuesday, on Capitol Hill, President Donald Trump set the 0% payroll tax rate for workers and employers, which will remain in force until the end of this year.
According to the official, who wished not to disclose his name, the option was considered to abolish the payroll tax forever. Payroll taxes are used for Medicare and Social Security.
Such a move was made for future economic stimulus, to counter the expanding outbreak of coronavirus. The Dow Jones Industrial Average fell 2,000 points on Monday, and recovered slightly on Tuesday, rising 1,000 points at the end of the trading session.
Initially, no specific actions were planned related to the country's economy, but Trump was stunned by his proposals.
Several meetings have already been planned: with the coronavirus task force, Wall Street leaders to discuss the economic response to the impact of coronavirus.
At the mention of a payroll tax cut, Trump said he wants to help airlines and cruise companies. The fear of the virus is growing and travel restrictions have undermined the demand for tourism and business travel.
Republican senators are reportedly skeptical of the payroll tax cut that was promoted by Peter Navarro, one of Trump's leading trade policy advisers.
Each employee pays 6.2% in the field of Social Security from his/her salary. Medicare comes in at 1.45%.
The White House also put forward a proposal to provide federal assistance to the oil shale industry due to lower oil prices.
