Among the executive orders President Trump signed this weekend is a payroll tax holiday through the end of the year targeted at Americans earning less than $100,000.
In his memorandum, Trump says this “modest, targeted action will put money directly in the pockets of American workers and generate additional incentives for work and employment.”
An important note on this so-called tax holiday: the money will still have to be paid back by the working public…it’s simply a deferral to the new year.
On the air this morning with K57 and reacting to the announcement, Sen. Joe S. San Agustin, the appropriations chair, says this shouldn’t impact GovGuam’s budget, since the tax break is targeted towards Medicaid and Social Security contributions.
“I’ve also spoken to Dafne Shimizu, DRT Director, and we don’t anticipate it affecting the withholding, which is basically … there’s generally, no impact at all to the budget. Everybody else working not to the Government of Guam…like Social Security, that will just be delayed. What we’re following and what’s trending right now is all they did was just delay the payment. Much like with the tax deadline, it went from April 15 to July 15…it will still get paid by the private industry,” San Agustin said.
Guam legislators kicked off session again today to discuss the island’s budget bill.
Senators have until August 31st to finalize the 2021 financial blueprint.