President Trump proposes payroll tax cuts for coronavirus relief

WASHINGTON — President Donald Trump is pushing another financial relief package but is only supporting one option, cutting the payroll taxes.

For those still working, this would mean more of your income staying in your wallet, including the money on paychecks that typically goes to Social Security and Medicare.

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“The payroll tax is something that I’ve always liked,” Trump said. “The problem is, it takes time.”

Trump is calling on Congress to suspend the payroll taxes and said it's the only way he'll support another coronavirus relief package.

If you look closely at your paycheck, you'll see payroll taxes cover several things: Social Security, which takes 6.2% of your income and Medicare, which takes 1.45%.

Your employer also pays payroll taxes, another 6.2% of your income.

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But how much you get back in each paycheck depends on how much the president would like to reduce the payroll taxes.

In 2011, President Obama cut payroll taxes by 2%. If that were to happen again, and for someone making $137,000 a year, that would mean about $2,754 more in your pocket.

One thought by administration officials would lead to cutting or suspending payroll taxes through the end of the year.

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“There are some very good ways of getting the money out and getting it out quickly,” Trump said. “And payroll tax is one way.”

Democrats aren’t going for it because it does almost nothing for people who’ve lost their jobs and don’t get a paycheck right now.

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