Rep. Beau LaFave today introduced a measure to help implement President Trump’s payroll tax holiday and economic stimulus plan in Michigan.
It’s a significant step toward ensuring the benefits of the President’s plan reach Michiganders, helping them cope with the economic turmoil of the COVID-19 pandemic. LaFave’s bill would implement the temporary deferral of certain payroll tax deductions for many state of Michigan government employees – leaving more money in their paychecks and stimulating the economy.
“This is a plan that puts more money in Michiganders’ pockets – helping people get through the economic troubles sparked by the COVID-19 pandemic and providing an economic boost across the state,” said LaFave, of Iron Mountain. “I believe all Michigan workers deserve relief and I encourage all employers to participate in this federal program, but mandating that would not be appropriate. Implementing this plan for state employees, however, sets a good example – one I hope other job providers will follow to give their employees much-needed and deserved relief in these difficult times.”
LaFave’s bill is based on a memorandum issued by the Trump administration in August. The Trump memorandum includes an order that allows postponement of the collection of certain Social Security and Medicare payroll taxes from Sept. 1 through Dec. 31 for individuals earning less than $104,000 annually, or less than $2,000 per week.
Employer participation is not mandated under the Trump order, but LaFave’s proposal would implement it for the state of Michigan’s executive and legislative branches.
“The state is a large employer with significant economic impact in communities across Michigan,” LaFave said. “This would be a good way to stimulate the economy and help businesses and workers well beyond state government.”
The legislation is House Bill 6262.
LaFave, of Iron Mountain, said the proposals would protect nursing home residents, extend unemployment benefits, and safely reopen local unemployment offices and Secretary of State branches in the wake of the recent Michigan Supreme Court ruling that struck down the governor’s coronavirus-related executive orders.
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