Transcript for Many businesses reject payroll tax holiday
Because congress' failed to come up at any agreement on additional economic stimulus measures in response to the ongoing pandemic. Trump has tried to take matters into his own hands pushing an effort to defer payroll taxes to put. More money into americans' paychecks but many businesses are pushing back saying. It's the wrong solution and they don't want to participate so what's behind the payroll tax battle here's ABC's Alex appreciate. Its. Sizzle and those clinking dishes those are sounds a promise for the silver diner in Alexandria Virginia. Something for owner Bob Geronimo to smile about. I love the people. I love hospitality I loved taking care of people making people laugh back in March he wasn't able to do the things he loved as coup bid nineteen threaten to close. Paul what his nearly two dozen restaurants. He was forced to lay off 15100 employees then the paycheck protection program came through this spring. Helping small businesses with redeemable loans if the funds were used to rehire employees. You consider yourself a but the poster child for the program we think it's been a terrific piece of legislation. Let him bring back thirteen hundred workers in continue plans to open this newest location we're really fortunate that congress came together to do it. But with congress stalled this summer on more stimulus for the economy. President trump tried to take action on his own on another front pushing for a payroll tax holiday we're going to save American jabs and provide. Related to the American workers. In August he signed an executive order allowing employees making less than a 100000 dollars to stop paying Social Security tax. It's a temporary savings have a little over 6%. Up she ruled tax deferral. Let them likening says it's a deferral through the into the year not an outright tax cuts. Payroll tax deferral. You decided not to take advantage of that with your business. Why I think it's playing with fire to start to give them a debt that they don't expect we don't want to bomb be manipulating. Their paychecks. So that they. Have a big tax bill meant cheer. Concerns like Bob's were detailed in this letter sent to congress by the US chamber of commerce and signed by more than thirty industry associations. Carolina areas is the Chamber's tax policy expert. I'm making 50000 dollar maniacs every two weeks and then got a 120 dollars uncertainty. But the reality is I'm January. I am that 120 dollars back every do we edition 120 dollars that I Allen on the normally. And employers could also get squeezed brought to you sappy and a CPA based in Washington DC pointed out as written. If an employee leaves before the end of the year their tax burden could fall on the business. I don't CD and fantasia and both from an employee of an order I don't. Even then not a I have always lead nods at even just intimacy administrative burden is enough for me is an employer knowledge. Not only does he see his clients have shied away from it his own firm won't use it and many economists say as a stimulus measure up payroll tax deferral isn't helping those who need it most. It makes sense to think about targeting a lot of these funds to people who lost their jobs due to the net. And I think is really worth noting that one of the best and she forms of stimulus. Is certainty and literature left not understanding how it went up to them and then there's the issue of funding Social Security Social Security face a huge financing shortfalls. And we made some changes to strengthen that program. Both Republicans and Democrats in congress have voiced concerns about the impact of payroll tax deferral could have on the program's finances something to president's rivals captured a mall in. And for our seniors. Social Security is a sacred obligation. A sacred promise made. They paid for. The current president is threatening to break that promise. Spokesperson for the White House said in a statement the president use the authorities available to win to help workers and still encourages all employers to take advantage of this in order to support hardworking Americans. During this period of economic uncertainty as we finish the fight against covic nineteen. Ultimately what every economist and business we talked to said they were hoping for is for congressional action on more economic stimulus. Let me Al American employers is what they are American workers may not be certain to figure out how to deal with the real economic crisis at hand and some of those might include doing more on the unemployment line to help people who lost their jobs. Things like extending and improving the paycheck protection program the original life raft for Bob. Are you confident that something comes through said. I have to be cut. Ominously optimistic. Cautiously optimistic. Competent would be hard to it's it's hard to predict but I believe that both sides want to do the right thing. But with that lead a stimulus. Bill feeling in this and it it's unlikely that any additional economic relief. Be coming any time soon meanwhile a group of senators have raised concerns. About millions of federal workers and members of the military they don't have the same option is businesses to simply not take part. And that he will tax deferral so these individuals we'll start seeing a bump in their paychecks but. Unless congress changes things come January they'll have to start paying that money back so. A group of twenty senators have signed a letter incident to the top administration asking for federal workers to have the option. Of not taking part in the payroll tax deferral. Lindsay. Our Allan thanks so much for that report.
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