As the coronavirus continues to spread panic and cause the stock market to drop, President Trump reported that he would press lawmakers to enact a payroll tax cut and ensure assistance is available to hourly workers. Trump will be meeting with Mitch McConnell to discuss some kind of tax relief. Many lawmakers have been pushing for paid time off to allow employees to stay home without additional financial hardship. Despite these actions, Trump has been downplaying the seriousness of this epidemic saying that the markets are overreacting and that "life and the economy go on." He compared this deadly virus to flu death tolls and blamed market losses on the media, Russia and Saudi Arabia. This outbreak has caused stock markets to halt and led governments to take drastic actions (e.g. lockdown in Italy) as it spreads across the globe. I think that Trump and his administration should instead work on getting people their tax refunds faster. He needs to acknowledge the extent of this virus and understand the fact that there is no vaccine, which is why everyone is on edge. Trump shouldn't fight a global crisis with financial easing; I don't think that monetary stimulus will help ease the economic hardships.
Questions:
1) Do you agree with President Trump's push for a payroll tax cut? How effective do you think it would be?
2) What else would you propose President Trump do to offset the coronavirus economic damage?
I agree with he presidents push for a payroll tax cut as it only seems fair for the people. I think it would be effective but payroll tax cut might not work for those who aren't currently working. Many people might lose their jobs due to this epidemic. This does help the general population though. President Trump should find a way to support everyone in this epidemic buy supplying a source of revenue for those who desperately need it.
ReplyDeleteA decrease in payroll taxes is only useful if you are still being paid. For the millions who have lost their job due to COVID-19 if will do nothing to help them. Therefore it the Trump administration truly wants to help these people get through the crisis it will need to increase unemployment benefits to help people through this extremely difficult time in their lives.
ReplyDeleteMore than payroll tax cuts, unemployment benefits must be put into place and bolstered, so that people who are facing no income rather than reduced income can still survive through this pandemic. I personally don't think a payroll tax cut would necessarily arrive in time to actually help people who are suffering, and more focus should be placed on aid for unemployed and medical workers, who are most at risk. His under-reaction is incredibly inappropriate, though I think he's changed his stance on that by now with a separate oval office speech.
ReplyDeleteTrump's push for a payroll tax cut is a good choice, and may show some effect, but there needs to be much more done. Unemployment is skyrocketing, the stock market is declining, and overall GDP has been completely halted. The market cannot safely come back until this pandemic has been controlled, and simply cutting payroll taxes will not do enough to curb the immense and dire consequences of such an immediate halting of the entire economy. Workers should get paid time off, but this is a pretty unrealistic request, as many businesses cannot afford to stay closed for so long, let alone giving employees paid time off. Many restaurants and other businesses are discouraging their employees from taking time off, even if it means risking the health of their employees. The employees are essentially forced to work, because if they take the recommended time off work, their employer will fire them, and because many service workers live paycheck-to-paycheck, being unemployed is not an option. The government needs to also address this situation, and continue to increase unemployment insurance, as many might not be able to continue to pay for utilities, internet, and groceries without some form of income, as they do not have enough saved.
ReplyDeleteI am not sure if a payroll tax cut is the best method to help those struggling in these trying times. Firstly, a payroll tax cut would likely be beneficial more towards businesses than employees, and although businesses need help to survive too, I believe the primary concern should be on those who are hit the hardest, and that is not business owners but the working class. Additionally, as others have pointed out, this will be of no assistance to the millions who have recently become unemployed as a result of this crisis. Extending unemployment benefits, alongside some form of temporary UBI, will be necessary for the common man to deal with this unprecedented challenge.
ReplyDeleteI think a payroll tax cut will actually help both employers and employees, since many jobs are being cut because companies cannot afford to supply paid leave for so many workers. A payroll tax cut would lighten the load for corporations and could reduce the amount of people losing their jobs. It is a difficult situation, because it is difficult for certain types of companies to keep making money when working remotely is not really effective, like construction or manual labor companies. I think Andrew has a good idea about extending unemployment benefits at least until things reach some level of normalcy again. However, the money has to come from somewhere. Just how much money we have allotted to emergencies for spending is beyond my knowledge, but I hope it will be enough.
ReplyDeleteThis payroll tax cut is a good idea, but it's just the first step. There is way more that needs to be done to adequately ensure that people can survive this crisis. Trump should address the severely high rates of unemployment beginning to appear, which will continue to rise drastically as this virus spreads and worsens. Additionally, this payroll tax cut approach seems more corporation-oriented, which definitely is more along the lines of Trump's priorities. Like usual, he wants to help big businesses, which don't really need help, while overlooking those working paycheck to paycheck. I agree with the previous authors highlighting the need for a focus on unemployment benefits. Other ways the government could help the average American right now is halting student loan payments, perhaps delaying mortgage payments, etc.
ReplyDeleteI think that although payroll tax cuts are a good choice, it will not necessarily benefit or help everyone. It only helps people who are still working and therefore does not consider people who are no longer employed due to the virus. I think that some sort of funding or unemployment benefits need to be given to people who have lost their jobs. There have been an immensely large amount of businesses, small convenient stores and other companies that have been shut down due to this pandemic which therefore shows the amount of job losses that have been occurring and the need for funding from the government for such people.
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