Kudlow: Wage tax deferral will bring “a gigantic wage increase” to employed Americans
White House economic advisor Larry KudlowLarry KudlowMORE said on Sunday that the wage tax deferral in President TrumpDonald TrumpNo panacea for crisis on the southern border Who’s the boss? Pelosi’s legacy sealed after he set out to beat Trump’s record for the fewest refugees displaced before “the Squad” Biden MORE‘Executive Order will bring “a gigantic wage increase” to millions of working Americans.
“There are about 140 million people who work. There are about 15 million or 16 million unemployed. The unemployed are too high. There’s a lot of heartbreak. That’s why we want to help them with unemployment benefits,” Kudlow said on ABC’s “This Week.” . “But the 140 million, some strange, they’re going to get a gigantic wage increase, probably $ 1,200 between September 1st and December 31st. And again we want – we will do whatever we can to make these loans.” I think this is an incentive to work for those who are heroes during the pandemic and also for the unemployed, it gives them an incentive to go back to work so we can make up for some of the excesses of unemployment benefits. “
“I appreciate these things. We may go to court because of them. We will continue our actions anyway, ”says Kudlow @GStephanopoulos when he was pressured by GOP Sen. Sasse to criticize that Trump’s wage tax deferral was “unconstitutional sloppiness”. https://t.co/UsD0N9aYk0 pic.twitter.com/7PV2NVw2xy
– This week (@ThisWeekABC) August 9, 2020
The wage tax deferral, one of four coronavirus aid executive orders that Trump signed on Saturday night after the collapse of Congressional negotiations, has been criticized for failing to do anything to help the unemployed and harm Social Security and Medicare funds . The Democrats also said companies would likely continue to levy wage taxes to avoid a shocking bill for employees when the grace period ends.
But Kudlow pointed out on Sunday that Trump would like to make the wage tax deferral permanent.
“I think the President, and that is in the executive order, would very much like to make the postponement permanent. In other words, he will essentially give it up in the coming months rather than repaying it. That is how it will be “You know, lending is in place. It really is,” he said. “And I think the companies will come.”