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Giantone · 09-09-2020, 03:49 PM

Trump Screwing the Military ..........again!

Trump's tax cut for military service members must be repaid in 2021

news.yahoo.com/trumps-tax-cut-military-members-130500080.html

WASHINGTON — Under a presidential memorandum issued by the Trump administration, tens of thousands of service members and Defense Department civilians will get a tax break beginning this month as part of efforts to boost the economy during the COVID-19 pandemic.

But while these men and women will see larger paychecks for now, they will have to pay all the money back in 2021.

“This will be a huge problem to young military families,” retired Army Gen. Barry McCaffrey said. “They will by human nature spend the apparent pay RAISE and then get kicked in the chops when they get several months-worth of DOUBLE withholding.”

Effective in its September mid-month paychecks, the Defense Department will begin to temporarily defer the 6.2 percent Social Security tax withholding for all DOD service members who make less than $8,666.66 per month in basic pay, and all DOD civilians who make less than $4,000 per pay period (roughly $8,000 per month).

Tens of thousands of people will receive bigger paychecks for the last few months of the year, as the U.S. marches toward the November election.

Then, the government will begin to collect the tax again and simultaneously collect all the deferred tax by withholding it from paychecks from Jan. 1 to April 30, 2021, meaning these same individuals will receive smaller paychecks than before the tax deferral.

Pre-tax basic pay for enlisted service members begins at under $2,000 per month.

Retired Adm. James Stavridis, an NBC News analyst and former NATO commander, said: "This reminds me of 'payday lending,' in the sense that it will make cash flow management more difficult for younger enlisted in the force. They will have to not fall prey to the temptation to spend cash they really don't have in the fall, because the tax man is coming later. Doesn't make sense as national policy, and hard to see the benefit for our troops.

09-09-2020, 03:49 PM	#2798
Giantone Gamebreaker Join Date: Apr 2006 Posts: 14,433	Re: When is Enough ,Enough? Trump Screwing the Military ..........again! Trump's tax cut for military service members must be repaid in 2021 news.yahoo.com/trumps-tax-cut-military-members-130500080.html WASHINGTON — Under a presidential memorandum issued by the Trump administration, tens of thousands of service members and Defense Department civilians will get a tax break beginning this month as part of efforts to boost the economy during the COVID-19 pandemic. But while these men and women will see larger paychecks for now, they will have to pay all the money back in 2021. “This will be a huge problem to young military families,” retired Army Gen. Barry McCaffrey said. “They will by human nature spend the apparent pay RAISE and then get kicked in the chops when they get several months-worth of DOUBLE withholding.” Effective in its September mid-month paychecks, the Defense Department will begin to temporarily defer the 6.2 percent Social Security tax withholding for all DOD service members who make less than $8,666.66 per month in basic pay, and all DOD civilians who make less than $4,000 per pay period (roughly $8,000 per month). Tens of thousands of people will receive bigger paychecks for the last few months of the year, as the U.S. marches toward the November election. Then, the government will begin to collect the tax again and simultaneously collect all the deferred tax by withholding it from paychecks from Jan. 1 to April 30, 2021, meaning these same individuals will receive smaller paychecks than before the tax deferral. Pre-tax basic pay for enlisted service members begins at under $2,000 per month. Retired Adm. James Stavridis, an NBC News analyst and former NATO commander, said: "This reminds me of 'payday lending,' in the sense that it will make cash flow management more difficult for younger enlisted in the force. They will have to not fall prey to the temptation to spend cash they really don't have in the fall, because the tax man is coming later. Doesn't make sense as national policy, and hard to see the benefit for our troops. __________________ ....DISCLAIMER: All of my posts/threads are my expressed typed opinion and the reader is not to assume these comments are absolute fact, law, or truth unless otherwise stated in said post/thread.