So the payroll tax cut, to me, is very important.”During the private portion of the meeting, Trump called a conservative economist he’s friendly with, Art Laffer, and put him on speakerphone to discuss the benefits of a payroll tax cut and how best to structure it, according to several people familiar with the events. The payroll tax is the 7.65 percent tax paid by employers and employees that goes toward the Social Security and Medicare trust funds. Congress already deferred the employer portion of the payroll tax cut in an earlier coronavirus bill. Trump has made the payroll tax cut a major sticking point and said that he may not sign the legislation if it doesn’t include the cut. Even though the payroll tax cut has dominated stimulus talks, administration officials have pushed other measures designed to help businesses rehire.

Source: Washington Post July 20, 2020 10:00 UTC