《Bellwether Watchpoint》 Trump Signs Coronavirus Relief Executive Orders 2020.8.10
撰寫： Abby Dzeng
雖然川普的四道行政命令是否可行仍有待商榷，但美股今晚開盤前的期貨卻正面回應。截至美國時間週一（8/10）上午5:30（台北時間週一下午5:30），道瓊期貨上漲105點，S&P 500期貨也見漲勢，Nasdaq則小跌0.02%左右。上週，道瓊總共上漲了3.8%，為六月以來最大漲幅，S&P 500和Nasdaq也上漲了2.5%。
Trump Signs Coronavirus Relief Executive Orders 2020.8.10
By Abby Dzeng
After the congressional leaders failed to reach an agreement on the second wave of coronavirus relief last week, President Donald Trump took matters to his own hands and signed four executive orders on Saturday (8/8). These executive orders include another round of unemployment benefits ($400 per week), a payroll tax holiday, a deferral of student loan payments, as well as the extension of a federal moratorium on evictions. The legal validity of Trump’s move is in question, as it is unclear whether he has the power to move around funds controlled by the Congress.
The executive order concerning payroll tax, specifically, is supposed to defer the collection of employee portions of the payroll tax for Americans earning less than $100,000 per year. Trump went on to add that if re-elected in November, he’d try and “terminate” the tax altogether, which is mainly used to fund Social Security and Medicare programs. One of the main issues here is that a tax deferral does not imply its forgiveness; in other words, if Trump isn’t back in the office after November (or if he is but fails to gain legal support from the Congress), the taxes will still be collected in the beginning of next year. Other concerns were raised, including the purpose of this tax – social security and medicare – being undermined, regarding this so-called payroll tax holiday. As a matter of fact, the mere deferral of taxes might be out of line for the President, as it is the Congress, not him, who holds the power to tax.
Although Trump’s executive orders might not be as solid as he had hoped, the futures market reacted positively regardless. As of Monday (8/10) 5:30am ET （5:30pm Taipei time), Dow Jones futures gained 105 points, and S&P futures were also up, while Nasdaq futures lagged behind at a 0.02% loss. Last week, the Dow rose an impressive 3.8% (the biggest weekly gain since June), while Nasdaq and S&P gained 2.5%.
However, some economists pointed out that the fiscal cliff will be a great risk in August. Even though the new round of fiscal support might bring out positive momentum in the market starting from September, it will no doubt worsen the existing financial issues within the US government. The stock market tonight will be an illustration of investors’ stands on Trump’s executive orders.
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