A top Republican representative introduced a legislation that would create a payroll tax holiday from September 1 until the end of this year.

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A day after the Democrats rejected the Republican-led "skinny" stimulus bill, Rep. Kevin Brady, a GOP representative from Texas, introduced a legislation that would create a payroll holiday tax until the end of this year to make sure that Americans will have enough money to spend amid the pandemic.

The proposed legislation aimed at forgiving taxes deferred under the memo of President Donald Trump issued last month, along with the executive order on the extension of unemployment benefits.

If Brady's bill would be approved, it will reduce the 6.2 percent employee-side Social Security tax to zero in the last four months of this year. Additionally, it would also implement a similar tax cut for self-employed people.

According to a published article on The Hill, the bill would make transfers to the fund from the general fund to prevent the payroll tax holiday from hurting the Social Security trust fund.

The Internal Revenue Service (IRS) has immediately issued guidelines after Trump released the memo in delaying the collection of payroll taxes. Employers have to recoup the deferred taxes during the first four months of 2021.

The payroll taxes deferral is optional, and some businessmen are not planning to implement the memo because it would be difficult for them to collect the taxes next year.

Trump has mentioned that he is planning to terminate the payroll taxes once he gets reelected. The main goal of Trump's memo and the proposed legislation is to help millions of Americans amid the country's economic fallout because of the global pandemic.

"The essential workers who keep this country running through the pandemic deserve a pay raise. This bill forgives the payroll taxes deferred by President Trump to help working families, many of whom now rely on a single paycheck," Brady said.

Brady also clarified that his proposed legislation would be applied to all workers in the country and not only to those whose taxes are currently being deferred.

According to the memo released by the Joint Committee on Taxation, employers would file amended returns to the IRS for periods when they over-withheld payroll taxes.

This is just one of the steps that Republican lawmakers are doing to help millions of Americans who continue to suffer amid global pandemic, especially that the Democrats again rejected the GOP's proposed stimulus bill.

It is still uncertain if either the Senate or Congress will make another draft of a new stimulus bill. However, Trump is reportedly planning to take executive actions to release stimulus checks using the unspent budget, even without the Democratic-led Congress' approval.

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