President of USA Donald Trump has finally taken this issue into consideration. He gathered with few lawmakers and decided on how to provide more money for COVID-19. He will be signing the executive order to get this stimulus plan in action. The reports say that the executive order may delay the payroll taxes. Which is from Sep 1, 2020, to Dec 31, 2020.
Donald Trump And Congress
Donald Trump is also encouraging Congress to pull back the delayed taxes of the people so that Americans will not have to pay them back in the next year. This is because, if the delayed taxes are not withdrawn by the congress then the Americans will have more money in their PayChecks but then they will have to bear long taxes of bill.
If this plan is successful like how MR. Trump wished and if the Americans won’t have to pay their bills, the coronavirus stimulus checks will be less giving. In simple words, It will be very less if it is compared with previous COVID-19 checks.
Lesser Than The First Stimulus Check: Social Security In Risk?
Trump’s plan in general, means the workers during the month of September, October, November, December 2020 won’t have to pay the payroll taxes for Social Security to be exact. Also, Mr. Trump has given his pledge to the people that their payroll taxes will be withdrawn, and the people will then pay the money eventually in the future.
This plan is not possible unless Congress agrees to it or Trump will have to find another plan. Trump should be planning an alternative plan if in case this doesn’t work so well.
COVID 19 Planning Details
Generally, The payrolls for social security are covered by the employee. They are responsible for paying almost 6.2% on income up to the wage base limit. The actual income in the US is $33,706 which comes under the president’s plan.
Therefore, the median salary of an adult would be around $696 in his savings, also keeping in mind that unpaid taxes are forgiven.
Why Previous COVID 19 Stimulus Check Was Better?
The amount which will be provided to the Americans will be much lesser than the previous coronavirus relief fund. The first stimulus check which provided almost $1200 to every eligible adult is lesser in comparison with $500 per eligible per adult. The plan falls under President Trump.
The people who have no dependents and also earning the median amount will receive 42% lesser money, under Trump’s plan. The plan may end up costing the Americans because the payroll taxes are the major source to fund Social Security.