President Trump’s economic adviser Larry Kudlow said the president did not intend to say he will make permanent cuts to the payroll tax.
During a Sunday appearance on CNN, host Dana Bash asked if the president was walking back his promise to protect Social Security by stating that he planned to make “permanent cuts” to the tax if reelected. Kudlow said the remarks were referencing forgiveness of deferred payroll tax payments.
“When he referred to permanent, I think what he was saying is that the deferral of the payroll tax to the end of the year will be made permanent. It will be forgiven. The tax is not going away. We’re still going to have the Social Security tax,” Kudlow said, adding, “I believe he was referring to doing away with the payback of the deferral, and I think his intent here, and it’s written in the EO, it’s very clear, that we will take any steps possible to forgive this deferral.”
Bash noted the president’s statement was part of a new campaign pledge if reelected, but Kudlow said it was part of a miscommunication and asserted the tax, which funds Social Security payments for retirees, would not go away.
“I think what he was saying is that the deferral of the payroll tax to the end of the year will be made permanent…the tax is not going away,” WH economic adviser Larry Kudlow says Pres. Trump’s promise to cut payroll taxes permanently will not impact Social Security or Medicare. pic.twitter.com/IYTpfW2IRi
— State of the Union (@CNNSotu) August 9, 2020
On Saturday, the president said at the Trump National Golf club in Bedminster, New Jersey, that he would make permanent cuts to the payroll tax.
“If I’m victorious on Nov. 3, I plan to forgive these taxes and make permanent cuts to the payroll tax. I’m gonna make them all permanent,” he said, noting that Democrats would oppose the act. “But if I win, I may extend and terminate. In other words, I’ll extend it beyond the year and terminate the tax.”
