Economy

Trump Appointees Shocked and Furious to Find They Owe Thousands After Payroll Tax Delay

Some former Trump administration staffers have received a pretty big shock lately: the ex-president has deferred their payroll taxes and asked them to pay. For many, that’s caused an enormous — and pricey hike in their taxes, Business Insider reports.

But this is Trump after all. Are you in any way the least bit surprised?

Politico is reporting that some Trump administration members are receiving letters requesting them to pay deferred Social Security taxes. One bill was actually as high as $1500.

Well that’s a fine “thank you” for four years of service now, isn’t it? But it really shouldn’t come as a shock since they were working for the world’s biggest shyster.

The letters are worded sternly.

“If the indebtedness is not paid in full within 30 calendar days, we intend to forward this debt to the Department of Treasury, Treasury Offset Program, for further collection,” said a copy of one such letter that was sent May 18, 2021, by an accounting officer from the Office of Administration, Business Insider reports.

Trump set this policy in motion in a memorandum to Treasury Secretary Steven Mnuchin, mandating that he defer some payroll taxes to “put money directly in the pockets of American workers,” who are, of course, the ones who most need it. This was a last-ditch effort to boost the economy, but as is typical of Trump, he assured his aides the levies would be forgiven.

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Some former staffers are understandably not happy.

One former official calls her $1300 bill “unacceptable” and notes she and her fellow employees “gave our time and effort to this agency and this is how we’re getting paid back.” Another colleague who was stuck with a $1200 whopper added “it’s just a very unfortunate situation.”

In order to perform this little trick, Trump bypassed Congress because the pandemic was “of sufficient severity and magnitude to warrant an emergency declaration.”

This bit of unpleasantness may have affected as many as 1.3 million federal employees who had their payroll taxes deferred. As part of the plan, workers who earned less than $4000 every two weeks wouldn’t be required to pay the 6.2 percent tax out of their paychecks from September through the end of the year.

Politico reports that as part of Trump’s August Executive Order, employers were allowed to put off paying their employees’ share of the 12.4 percent Social Security tax for the rest of the year. It was hoped this would boost consumer spending by providing millions of consumers with unexpected largesse.

“But the initiative was widely rejected by private sector employers, in part because they feared workers would be unprepared to pay the money back,” Politico reports.

Trump said on numerous occasions that he expected Congress to forgive the debts over time but that’s not what has happened, and the end result is that lawmakers agreed to give people more time to repay the money.

“While the IRS had initially wanted the money paid back this year between January and the end of April — matching the four-month length of the deferral — Congress agreed to give people this entire year to repay it,” Politico reports.

It’s all well and good that Trump tried to boost the economy this way after largely doing anything of any substance to stop the pandemic but now the former employees of his administration are getting what they paid for.

meet the author

Megan has lived in California, Nevada, Arizona, Texas, Louisiana, Mississippi, and Florida and she currently lives in Central America. Living in these places has informed her writing on politics, science, and history. She is currently owned by 15 cats and 3 dogs and regularly owns Trump supporters when she has the opportunity. She can be found on Twitter at https://twitter.com/GaiaLibra and Facebook at https://www.facebook.com/politicalsaurus

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