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Trump Tax Scam For Military Service Members Must Be Repaid In 2021
In another self serving transaction for Trump and his re-election campaign comes a tax cut for military service members who will receive bigger paychecks for the last few months of the year. The catch? They have to pay ALL the money back in 2021.
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.
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.
But while these men and women will see larger paychecks for now, they will have to pay all the money back in 2021.
It is a sad reality that many military families struggle to make ends meet. Obstacles like this make it difficult for military families to be financially stable.
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."
“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.”
And they're giving the members of our military no choice. Extra money now that will be ripped back in a few months.
All enlisted service members will be affected by this, no matter the rank or time in grade. All officers from second lieutenant to majors and Navy lieutenant commanders will also have their taxes withheld.
On Tuesday [Sept 8, 2020], a group of 20 senators —19 Democrats, two independents, and Republican Sen. Susan Collins of Maine — sent a letter to Treasury Secretary Steven Mnuchin and Office of Management and Budget Director Russell Vought urging them make the tax deferral optional.