President Donald Trump has not been afraid to announce executive action in response to perceived foot-dragging by the legislative branch.
According to a tweet on Wednesday, his latest flurry of proposals will deal with a host of issues — including one that provides some good news for struggling renters.
“That eviction moratorium expired”
“Upon departing the Oval Office for Ohio, I’ve notified my staff to continue working on an Executive Order with respect to Payroll Tax Cut, Eviction Protections, Unemployment Extensions, and Student Loan Repayment Options,” he wrote.
Zach Friedman, a personal finance contributor for Forbes, wrote that Trump is prioritizing protections for those Americans on the cusp of being evicted following a grace period that recently lapsed.
“The Cares Act placed a 120-day moratorium on evictions,” Friedman said of the coronavirus relief bill passed in March. “However, that eviction moratorium expired on July 25, 2020.”
He said states including New York, California, Texas, and Florida are poised to see a spike in evictions as coronavirus cases, rent prices, and the unemployment rate rise.
Similar efforts to extend the moratorium on evictions have come from the Democratic Party, including legislation proposed by Sens. Elizabeth Warren (D-MA) and Maxine Waters (D-CA).
“Less revenue for the federal government”
As Friedman reported, it remains “unclear whether Trump’s potential executive order would incorporate any parts of these proposals or include an alternative path.”
Other uncertainties surround the plan to cut payroll taxes, he noted, including whether an effort aimed at saving employers money so they can avoid layoffs could backfire.
Such a move would “by definition, exclude those who are unemployed or retired” as well as “result in less revenue for the federal government, particularly for Social Security and Medicare,” Friedman concluded.
Furthermore, there is some constitutional concern regarding whether Trump even has the authority to designate such a tax holiday given the fact that Article I of the U.S. Constitution gives Congress the power to “lay and collect taxes.”
As with any major move, there is sure to be criticism of Trump’s proposed action. His continued dedication to addressing issues that are crucial for millions of Americans, however, seems to show his focus remains on those he was elected to serve.
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