1、CRS INSIGHT Prepared for Members and Committees of Congress INSIGHTINSIGHTi i Payroll Tax Cuts as an Economic Stimulus Response to Coronavirus Disease (COVID-19) Donald J. Marples Specialist in Public Finance Molly F. Sherlock Specialist in Public Finance March 5, 2020 The current coronavirus diseas
2、e (COVID-19) outbreak has increased concerns that the U.S. economy could be affected as part of a global economic downturn. A range of fiscal and monetary policy tools have been used to address prior times of economic weakness. One option for fiscal stimulus is a temporary payroll tax cut for employ
3、ees. This option was used to address economic weakness in 2011 and 2012. On March 2, 2020, President Trump and others expressed interest in a one-year payroll tax cut to help bolster the economy. What Are Payroll Taxes? Payroll taxes are collected to finance certain entitlement programs, including S
4、ocial Security, parts of Medicare, and Unemployment Compensation (UC). Social Securitys old age, survivors, and disability insurance (OASDI) payroll tax is paid by eligible workers and their employers, and it finances the Social Security trust funds. The tax equals 6.2% of wages on the taxable earni
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