A debate between the White House and the Treasury Department over President Trump’s payroll tax suspension has delayed crucial information about how the executive order will be carried out, leaving businesses across the country uncertain about how to proceed, the New York Times reported. The delay in releasing guidelines about the tax suspension comes amid broad business backlash to the idea, which was announced by Trump this month after talks with Congress over another economic relief bill stalled. The executive order aims to stimulate the economy by allowing companies to stop withholding payroll taxes until the end of the year, putting more money in workers’ pockets. But companies and trade groups have called the suspension an unnecessary complication since employees will be on the hook to pay the deferred taxes back when the tax holiday ends. Many companies are expected to opt out of participating to avoid sticking their employees with a giant tax bill next year. The White House, which is eager to push through a tax cut before the November election, wants the Treasury guidance to ensure that companies, not workers, are held liable for paying the employee portion of the tax when the tax holiday ends. It is unclear why the Treasury Department has not been willing to issue such guidance, but businesses, which have been fielding questions from their employees about when the tax cuts will begin, would prefer that Congress legislate any changes to tax policy. It is also not clear that the White House would have the legal authority to shift the tax burden in such a manner.
