Senator David Perdue Offers Solutions For Employers & Employees Impacted By Coronavirus
Calls For Payroll Tax Suspension In U.S. Senate’s Phase 3 Relief Package
WASHINGTON, D.C. – U.S. Senator David Perdue (R-GA) introduced an amendment to temporarily suspend payroll taxes for one year, which would provide employers and employees with direct relief during the coronavirus crisis. Senator Perdue was joined by U.S. Senator Thom Tillis (R-NC) in proposing this critical amendment to the U.S. Senate’s phase three coronavirus economic relief package.
“The coronavirus outbreak is creating an economic crisis in the United States, and what’s most at risk is the relationship between employers and employees,” said Senator Perdue. “As Americans take extra precautions to slow the spread of the virus, consumer demand is plummeting and businesses large and small are losing access to capital. At this critical moment, we need to make sure American businesses have the capital they need to keep people on the payroll for as long as possible. If we act quickly and inject liquidity into the market, Americans will still have a job to return to when the coronavirus is contained.”
“Our nation is facing an unprecedented public health crisis, and we are all in this together,” said Senator Tillis. “North Carolina families have already been making sacrifices, and many others have already felt a harsh economic toll as a result of the COVID-19 outbreak. Suspending the payroll tax will get money in the pocket of employees and employers so that we do not suffer further economic harm.”
Senator Perdue’s amendment to the Coronavirus Aid, Relief, and Economic Security Act would:
- Exempt the payroll tax for one year, giving both employers and employees an immediate tax cut of 6.2%.
- Instruct the U.S. Treasury to transfer revenue from the general fund to fill the void from the missing payroll taxes.
This action follows the advice of leading economists, who have estimated the best way to create a fast economic recovery is to put as much money into the hands of taxpayers as quickly as possible. Historical trends show every $1 provided to taxpayers on the front end of an economic shock has a multiplier effect compared to that of money spent after the crisis is over.
Click here for text of Senator Perdue’s amendment.
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