Many companies are likely to decline to stop withholding money for payroll taxes since it is uncertain that they will ever be waived. But Mr. Mnuchin rejected suggestions from Democrats that deferring payroll taxes would lead to cuts in Social Security or Medicare benefits. The money that supports those programs would be backstopped by a transfer from the Treasury general fund, he said.
Still, he acknowledged that the payroll taxes would eventually have to be repaid unless Mr. Trump could reach a deal on legislation that would allow them to be waived or forgiven — an unlikely scenario — and that the deficit would continue to swell.
“We’ll deal with the budget deficit when we get the economy back to where it was before,” Mr. Mnuchin said.