In recent days, President Trump has initiated a series of executive actions to address issues ranging from payroll tax deferral, student loan relief, and eviction prevention. While these actions demonstrate the President’s push to circumvent Congress and implement change, many experts question their long-term effectiveness and ability to generate tangible change.
On payroll tax, Trump is directing the Treasury Department to halve the Social Security tax withholding employees pay from 6.2% to 3%, which would amount to an extra $1,200 for workers during the holiday season. However, this measure is not without flaws – it would only affect certain employees, and it may not lead to additional spending, since many workers plan their finances around a particular wage amount. Furthermore, it is unclear whether the tax cut will be waived or collected later, possibly causing financial stress for borrowers in the future.
In the realm of student loans, Trump has extended the freeze on federal student loans through January 2021, preventing borrowers from making payments and accruing interest. This move seemingly appeases student debtors and offers some relief, but advocates argue that it does not go far enough and could negatively affect individuals who seek to establish a strong credit history during the payment freeze.
Lastly, the executive order to ban evictions, coupled with the Centers for Disease Control’s corresponding moratorium, might offer temporary reprieve to struggling renters. Still, tenant advocates question whether these measures are truly effective, considering many tenants may continue to fall behind on rent and landlords remain unpaid.
Despite the shortcomings and potential uncertainty of some of Trump’s actions, the President’s intention to enact change and offer relief during a climate of economic hardship remains evident. Whether these executive actions make a lasting impact or are merely PR stunts remains to be seen.
