The White House's recent executive order to defer the collection of payroll taxes has led to ucertainty and confusion on the part of business owners who are wondering how to respond, said the New York Times.

Because, for now, the deferral is not a cut, this means the money would need to eventually be paid back. This means that, while the move was meant to be a balm for the pandemic's economic chaos, it is unlikely that the money will make much of a difference, as some companies are saying they're just going to hold onto the extra cash waiting for the day it needs to go back to the federal government or, alternately, advising their employees to do the same.

What's more, because there is uncertainty over whether the executive order was even legal, businesses are hesitant to make any major changes to their witholding practices in the event the courts overturn the measure.

Further, even if this doesn't happen, there are certain logistical hurdles that must be overcome, such as updating computer software, and for some it is uncertain whether this can actually be done in a reasonable amount of time.

Many wait for guidance to provide further clarity. As they wait, the White House also said that it is seriously considering a similar cut in capital gains taxes, according to Bloomberg. Like the payroll tax, the administration cannot actually do this without cooperation with Congress, though theoretically it might try to do so anyway via another executive order that adjusts the original purchase price of an asset when it is sold to prevent it from being taxed. Such a move though would likely draw the same constitutional questions as the payroll tax deferral.

Also like the payroll tax deferral, it would also raise questions as to the administration's priorities; just as the payroll tax deferral would only benefit those who already have a job, a cut in the capital gains tax would generally just benefit wealthier Americans who have enough money to afford capital in the first place. This is especially the case considering that markets are actually booming right now, with the S&P 500 approaching an all-time record.