Memorandum Potential Overreach

Memorandum on Deferring Payroll Tax Obligations in Light of the Ongoing COVID-19 Disaster

Issued 2020-08-08 by Donald J. Trump

Plain-English Overview

AI-generated summary explaining what this action does, who it affects, and why it matters

This executive action, a memorandum issued by President Donald J. Trump on August 7, 2020, is titled "Memorandum on Deferring Payroll Tax Obligations in Light of the Ongoing COVID-19 Disaster." It directs the Secretary of the Treasury to defer certain payroll tax obligations on wages paid from September 1, 2020, through December

AI-generated summary for educational purposes

Constitutional Analysis

How this action fits (or doesn't) within Article II authority and existing law

This memorandum ("Memorandum on Deferring Payroll Tax Obligations in Light of the Ongoing COVID-19 Disaster") directs the withholding, freezing, or delayed spending of congressionally appropriated funds. The Impoundment Control Act of 1974 specifically prohibits this type of action. Congress passed that law in response to President Nixon's refusal to spend appropriated funds, and it remains the governing framework today.

The power of the purse belongs to Congress under Article I, Section 9. When money is appropriated by law, the executive branch is obligated to spend it as directed. A memorandum directing agencies to withhold, pause, or slow-walk spending conflicts with this constitutional structure. Courts have consistently sided with Congress in impoundment disputes.

Official Summary

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