Published 03:48 IST, August 9th 2020

Trump halts payroll tax, extends jobless benefits

Seizing the power of his podium and his pen, US President Donald Trump on Saturday moved to bypass the nation's elected lawmakers as he claimed the authority to defer payroll taxes and extend an expired unemployment benefit after negotiations with Congress on a new coronavirus rescue package collapsed.

Follow: Google News Icon
  • share
null | Image: self
Advertisement

Seizing power of his podium and his pen, US President Donald Trump on Saturday moved to bypass nation's elected lawmakers as he claimed authority to defer payroll taxes and extend an expired unemployment benefit after negotiations with Congress on a new coronavirus rescue pack collapsed.

At his private country club in Bedminster, New Jersey, Trump signed four executive orders to act where Congress hasn't, contending Washington's gridlock h compelled him to act as pandemic undermined country's ecomy and imperiled his vember reelection hopes.

Advertisement

Perhaps most crucially, Trump moved to continue paying a supplemental federal unemployment benefit for millions of Americans out of work during outbreak. However, his order called for up to $400 payments, one-third less than $600 people h been receiving. Congress allowed those higher payments to lapse on Aug. 1, and negotiations to extend m have been mired in partisan gridlock, with White House and Democrats miles apart.

Trump largely stayed on sidelines during ministration’s negotiations with congressional leers, leaving talks on his side to chief of staff Mark Meows and Treasury Secretary Steve Mnuchin.

Advertisement

Trump’s embrace of executive actions to sidestep Congress runs in sharp contrast to his criticism of former President Barack Obama’s use of executive orders on a more limited basis. And president’s step-back from talks with Congress breaks with his self-assured negotiating skills.

w, Trump, who has t spoken with Democratic House Speaker Nancy Pelosi since last year, sought to play role of election-year savior, with $400 weekly assistance, as well as a deferral of payroll tax and federal student loan payments and continuation of a freeze on some evictions during crisis.

Advertisement

“It's $400 a week, and we're doing it without Democrats,” Trump said, asking states to cover 25% of cost. Trump is seeking to set aside $44 billion in previously approved disaster aid to help states maintain supplemental pandemic jobless benefits, but Trump said it would be up to states to determine how much, if any of it, to fund, so benefits could be smaller still.

Many states have been facing budget shortfalls due to coronavirus pandemic and would have difficulty assuming new obligation. previous unemployment benefit was fully funded by Washington.

Advertisement

03:48 IST, August 9th 2020