Quantcast
Connect with us

Senate Democrats try to save federal workforce from Trump’s harebrained payroll tax scheme

Published

on

- Commentary
Steve Mnuchin and Donald Trump (Mandel Ngan:AFP)

Senate Democrats are trying to save federal workers from having big docks in their pay next spring by allowing them to opt out of the mandatory Trump scheme to give them a payroll tax holiday. Trump spent the whole of the year obsessing about “terminating” payroll taxes as stimulus in the coronavirus pandemic, somehow not grasping the basic issue that people who lost their jobs because of the virus aren’t paying payroll taxes anyway. He was so intent on making this thing that no one thought would be helpful that his administration finally just gave in and imposed it on the only people they could—federal workers. The difficulty is that they’ll have to pay the money back in the first quarter of next year, while we’re still going to be in this pandemic.

ADVERTISEMENT

Democrats want them to be able to opt out and continue to have the withholdings. “During this time of heightened uncertainty, our public servants deserve the ability to choose what makes most sense for them and for their pocketbooks. That’s why the President’s payroll tax deferral must be made optional,” lead sponsor of the bill, Sen. Chris Van Hollen of Maryland, said in a statement. These are the payroll taxes that fund Social Security. Trump has vowed to “terminate” payroll taxes entirely, a plan that could “terminate” Social Security by 2023, the chief actuary for the program says. That’s if there wasn’t a substitute funding plan in place. Given that they haven’t managed a substitute plan for the Affordable Care Act in a decade, it’s hard to imagine Republicans coming up with a Social Security plan.

Members of Congress have been urging the administration to allow federal employees to opt out—they’ve done so in both the House and Senate, and private sector employees and employers have been given that choice. Other than the House and Senate, only the semi-governmental, semi-private Postal Service has been given the option. Even Louis DeJoy, Trump’s corrupt toady postmaster general, opted out of suspending withholding. Federal employee unions have also been asking the administration to allow them to give the withholding a pass. Treasury Sec. Steven Mnuchin said in a hearing last month that that was a “reasonable” request, but he hasn’t acted on it, and he and the Office of Management and Budget have kept the policy in place.

So all federal employees who earn less than $4,000 per biweekly paycheck with get the 6.2% bump in pay, but will have to repay that starting in January, with larger withholdings from their paychecks—the regular withholding plus the clawback. So they won’t be able to spend this “extra” pay now because they’ll need it starting in January when their paychecks will be smaller. Which is stupid. But it’s Trump’s big idea so of course it’s stupid. “The President’s payroll tax deferral scheme is nothing more than a scam on hardworking federal employees—making their paychecks look bigger until the end the of the year when they’ll be hit with a surprise increase in their payroll taxes right after the holidays,” American Federation of Government Employees President Everett Kelley said in a statement.

The Democrats’ legislation might be enough of a nudge for Mnuchin to reverse the policy for the remainder of the year, but again, Trump wanted this. He seems to believe that all the federal employees will be so grateful to him for giving them a temporary bonus they’ll vote for him or something. Which shows just how untethered from reality the man is.


Report typos and corrections to: [email protected].
READ COMMENTS - JOIN THE DISCUSSION
Continue Reading

2020 Election

There were several glaring omissions in the FBI’s bizarre announcement about election interference

Published

on

Director of National Intelligence John Ratcliffe and FBI Director Christopher Wray announced on Wednesday in a last-minute press briefing that both Iran and Russia have obtained voter registration information and have "taken specific actions to influence public opinion."

In particular, Ratcliffe said that Iran has been found to have sent "spoofed emails designed to intimidate voters, incite social unrest, and damage President Trump." He seemed to be referring to an incident described in a Washington Post story published right before the conference, which said the U.S. has concluded that Iran had sent emails pretending to be from the right-wing group the Proud Boys to Democratic voters.

Continue Reading

2020 Election

Expert: Trump’s ‘forward-leaning posture’ and ‘body tics’ are cause for serious concern

Published

on

A professor of Neurology at George Washington University says he believes there may be legitimate concerns over President Donald J. Trump's "forward-listing posture" that goes beyond the comical memes and gif responses normally shared on social media.

"I know something about political figures and observable signs of illness from afar," Richard E. Cytowic M.D. wrote in Psychology Today. "... The American public deserves an accurate account of our president’s health."

Continue Reading
 

2020 Election

Trump, Biden attorneys flock to Florida to protect votes

Published

on

Miami (AFP) - Hundreds of attorneys and volunteers from the presidential campaigns of Donald Trump and Joe Biden have deployed to Florida polling stations to make sure votes for their candidates are respected, as record numbers of people cast ballots early.Tensions are especially high as fear about the coronavirus and violence at polling stations is compounded by Florida's history of contested elections that have ended in recounts or even court battles.Florida, where Republican Trump and Democrat Biden are practically tied, accounts for 29 crucial electoral votes, with 270 needed to win the US... (more…)

Continue Reading
 
 
Democracy is in peril. Invest in progressive news. Join Raw Story Investigates for $1. Go ad-free. LEARN MORE