President Trumpâs Payroll Tax Holiday: Alternative Distributional Analysis
We expand our previous analysis of President Trumpâs proposed payroll tax holiday by considering two scenarios for how the employer side of the tax cut would be distributed: either to the full benefit of business owners and corporate equity holders (âprofits riseâ) or to the full benefit of workers (âwages riseâ). When profits rise, the top 1 percent of families by income receive about 29 percent of the total payroll tax cut, compared to about 4 percent of the total cut when wages rise.
