Stalemate continues in Congress over how to next mitigate the lingering economic pain inflicted by the coronavirus shutdown. Nearly all House members and senators publicly agree on the need to provide assistance to those impacted by this economic crisis. Yet, despite almost six months of discussion, legislation remains elusive.
President Donald Trump has identified similar concerns and repeatedly expressed support for additional aid. And because of the lack of congressional action, he has aggressively explored an array of possible executive actions linked to existing statutory authority.
Much of this authority granted by Congress is either expansive or vaguely defined. Since our nation's founding, presidents have tested its outer limits. In response, Congress has often shirked its constitutional mandate to check the president from exceeding these limits. In addition, over the decades Congress has proactively ceded large swaths of its responsibilities to the executive branch. As a result, the executive branch wields power unimagined by the founders.
Recent executive orders on payroll tax deferments, unemployment compensation and eviction moratoriums highlight the importance of restoring the balance of power envisioned by our founders. Our Constitution gives Congress the ultimate power to levy taxes, allocate spending and create law. The executive branch, headed by the president, bears the responsibility of faithfully executing those laws.
Earlier this year, Congress granted businesses leeway to defer until the end of 2022 the employer portion of the Social Security tax owed on the remainder of this year's wages. However, Congress chose not to defer the taxes for the employee portion. So Trump issued an executive order suspending collection of the employee portion for the rest of the year.
Regardless of desired economic outcome, the president lacks clear statutory authority to suspend collection of the tax in this manner.
Furthermore, most businesses are hesitant to transmit deferred taxes to employees. After all, employers still must remit these taxes, albeit at a delayed date. When the IRS bill comes due, they will be forced to withhold these deferred taxes from the paychecks of their workers.
The attempt to alter tax policy through executive order has frustrated the administration's desire to provide workers with a boost in take-home pay during the economic uncertainty.