Payroll taxes in the US are taxes taken out of an employee’s salary by their employer to be sent to the government. These taxes – typically paid by both the employer and the employee – are used to fund Social Security and Medicare.
It differs from income tax, which is more complex and is based on income not just limited to work.
Mr Trump said: “After I hopefully get elected, we’ll be terminating the payroll tax. So that will mean anywhere from $5,000 or even more per family.”
He later told reporters: “We’ll be paying into social security through the general fund, and it works out very nicely.
“If Biden would win, he wouldn’t do that because he’s going to double and triple everybody’s taxes.”
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He also said he would be “deferring payments on student loans at zero interest until further notice.”
It comes just days after the president announced that current payroll taxes would be deferred.
This applies to Americans earning less than $100,000 a year – roughly $8,000 a month, according to Investopedia.
However, these taxes will still have to be paid next year.
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In lieu of the funding brought in from payroll taxes, Mr Trump claimed money for Social Security and Medicare would come from general government income.
In the US, Social Security is known for providing retirement benefits to old-aged pensioners.
However, it also provides disability income and survivor benefits.
Medicare, meanwhile, is a government health insurance programme for people in the US aged 65 or older, as well as some younger people with disabilities or medical conditions.
Despite the president insisting social security would not be affected by the payroll tax cuts, analysts have said the cuts carry political risks.
Joe Biden tweeted his opposition to the cuts, saying: “Donald Trump has said that if he’s re-elected, he’ll defund social security. We can’t let that happen.”
The president’s move has also given rise to discussions about whether he would be able to circumvent Congress to enact the policies in the first place.