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Factbox: Tax cuts, reduced unemployment benefits: What's in Trump's coronavirus executive orders

Published 08/08/2020, 07:05 PM
Updated 08/08/2020, 07:05 PM
© Reuters. U.S. President Donald Trump holds a news conference at his golf resort in Bedminster

By Raphael Satter

(Reuters) - After failing to reach a deal with the U.S. Congress for a fresh round of coronavirus pandemic relief, President Donald Trump signed a series of executive orders aimed at pumping up America's pandemic-hit economy.

The orders are likely to face some legal challenges.

UNEMPLOYMENT RELIEF

Trump's order cuts enhanced federal unemployment benefits - a lifeline for the tens of millions of Americans thrown out of work during the pandemic - from $600 to $400 per week. Democrats had been lobbying to extend the original $600 a week enhanced benefits, which expired on July 31.

Trump proposes taking most of the money from the coffers of the Federal Emergency Management Agency - $44 billion, according to the order - with 25% of the money coming from states.

It's not clear how Trump will convince state governments, whose revenues have been hard hit by the crisis, to pony up their proposed share.

Trump called the reduced payments "generous."

A PAYROLL TAX CUT

Trump's first order waives the payroll tax that funds Social Security in a bid to inject extra money directly into salaried employees' pockets. Trump has been pushing the idea for a while but it has found little support in Congress from Democrats or his fellow Republicans.

The executive order says the cut comes into effect on Sept. 1, but Trump said it "most likely" would be retroactive to Aug. 1 and translate into "bigger paychecks for working families."

EVICTIONS

Trump's order protecting homeowners and renters from evictions is unlikely to face a challenge from Democrats; indeed, House of Representatives Speaker Nancy Pelosi this week encouraged the move. But it isn't clear how it will be executed.

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The order directs authorities to provide "temporary financial assistance" to renters and homeowners "struggling to meet their monthly rental or mortgage obligations."

Even Trump seemed a little hazy on the order's ultimate effects, saying "we don't want people being evicted and the act that I am signing will solve that problem - largely, hopefully, completely."

STUDENT LOANS

Trump said that interest on student loan payments - frozen since March - would be suspended until the end of the year.

Latest comments

Omg - LOL... what a spun deceptive article. By Rueters of course.... ‘Trump's order cuts enhanced federal unemployment benefits.....from $600 to $400 per week.’Hahahahahaha..... I dont even have to explain that one... everybody knows the benefit ran out last week...
This is such a manipulation of the voters. Wait until the last minute to negotiate in bad faith, say we couldn't reach a deal, and sign executive orders on things he has no authority over but knows anyone who tries to stop it will look bad to the voters. The biggest piece of garbage that ever sat in the White House, manipulating the most divided and uninformed electorate in the history of the US. And these Republican voters would sooner vote in Adolf *****to keep it as someone from their side than look at actual facts, figures, and reality. I'm embarrassed to be an American these days.
I'm not a Democrat, I'm just informed. You're obviously one of the uninformed I was talking about. Look at the facts. The Dems passed the legislation months ago and the Republicans didn't even start talking until UI was expiring. This was all in the plan. Wake up, your country has been stolen from you.
Ian = sheep...
if you are embarrased you can always leave.. may I suggest Venezuela or Cuba?
Trump takes charge...he has a pen and a phone!!!
Anybody still saying we don"t live in a dictatorship? None of this has a majority in Senat or Congress. But the dictator pushes his illegal executive orders like he is an emperor or so. Can't wait to vote him out.
You need to understand reality and not call everything you don’t like “politics.” This order is illegal and will be rejected in court.
Hes doing the same thing Obama did but this president is doing it for the people instead of his cronies
cheap debt and tax cuts is definitely not the answer. just going to feed more stock market and asset speculation. inflating this bubble even more
Any bubble forming can be handled with proper planning of US economics. The government could mass sell many properties it owns as a means to raise capital to balance things out. Boosting domestic production while relying less on foreign countries is also a measure to counter recession. I believe much of what we are seeing is and has been all along to handle the receding market behind Covid. And many more measures coming. This time they didn't bail out banks. They are doing something different, and deflecting the problem to Covid. But its in fact the US handling the recession that started way before covid, mid 2018 actually.
well hello there socialism. it was a matter of time before this happened. gotta appease voters if he wants to get reelected.
Trump was repeatedly advised not to cut the payroll tax as this will further deplete funding of Social Security retirement and disability benefits for current and future recipients. Social Security is reportedly the major source of income for 60% of retirees.
Perhaps. He also cut drug prices by up to 75%. Also, extended Medicare to people with pre existing conditions. I think the elderly will be the main beneficiaries of such measures. At the same time these bills might just serve to spark new conversations leading to an actual deal between parties.
about the first part of the article: Trump did not fail to reach a deal with US congress, it was Dem and GOP congressman that did not reach a deal in time. Trump stepped in. Trump did not cut unemployment benefits, he extended them, along with other benefits not previously present.
Behind the scenes, the President is included in negotiations since ultimately he signs the bills that the House and Senate finalize and retains executive authority to veto if he disagrees.
Pelosi and McConnell talk about this candidly in interviews with the press.
i like the $400 UI benefit. I'm only getting $163/week right now.
Defer tax only
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