Trump May Try To Bolster Economy With Payroll Tax Cut
WASHINGTON – President Donald Trump said Tuesday that his administration is considering a temporary payroll tax cut as a way to bolster the U.S. economy though he continues to insist the nation is not inching toward a recession.
“I’ve been thinking about payroll taxes for a long time,” Trump said during an Oval Office meeting with Romanian President Klaus Iohannis.
“We’re looking at various tax reductions. But I’m looking at that all the time anyway,” he said, adding “Many people would like to see that.”
He also said that the administration is also looking at doing something on the capital gains tax, saying he’d “love” to do something in that regard, but he cautioned reporters that nothing has been decided.
“We’re looking at various tax reductions,” Trump said. “That’s one of the reasons we’re in such a strong economic position. We’re right now, the No 1 country anywhere in the world by far as the economy. Europe’s got a lot of problems. Asia’s got a lot of problems. You look at China, China’s had the worst year they’ve had in 27 years.”
The White House has been disputing that a recession is coming since last week, when a number of respected analysts and an automatic inversion in the Treasury bond all suggest a recession could come any time in the next two years.
Trump and members of the White House staff continued to push back at the recession talk Monday and Tuesday, but the president also lashed out at the Federal Reserve and Fed Chairman Jerome Powell, saying “If the Fed would do its job … lowering interest rates … we’d have a tremendous spurt of growth.”
“I’d like to see a cut of the Fed rate, because they should have happened a long time ago,” Trump continued. “I think they’re being very tardy not doing it and not having done it …They also did quantitative tightening, which was ridiculous, and despite that, our economy’s grown fantastically.
“If you take a look at the previous administration, they had no interest. They had no interest rates, they had loosening, not tightening, and, frankly, the difference in our job is that we have to be proactive,” the president said.
While cutting payroll taxes could result in a temporary jump in spending by middle class consumers, it would also increase the deficit and make it harder to finance Medicare and Social Security, both of which are funded by payroll taxes.
In The News
WASHINGTON - A majority of chief financial officers surveyed by Duke University believe the United States will be in an economic recession by the 2020 Election, despite continuing low unemployment. Fifty-three percent of the 225 CFOs participating in the latest Duke University/CFO Global Business Outlook survey,... Read More
WASHINGTON — Wall Street could soon get one of its most consequential wins of the Trump era as regulators are considering ripping up a rule that’s forced banks to set aside billions of dollars for swaps trades, according to people familiar with the matter. At issue... Read More
DUBAI, United Arab Emirates — The latest and most destructive attacks on Saudi oil facilities provide stark evidence of the vulnerability of global crude supply in an age of disruptive technologies that can bring a century-old industry to its knees — at least temporarily. From remote-controlled... Read More
DETROIT — Members of the United Auto Workers went on strike at General Motors Co. plants nationwide at midnight Sunday night, sending 46,000 workers to picket lines in the union’s first walkout since the automaker emerged from taxpayer-funded bankruptcy a decade ago. The UAW on Sunday... Read More
WASHINGTON — The Trump administration announced Thursday that it is repealing an Obama-era clean water rule that had placed limits on polluting chemicals that could be used near streams, wetlands and other bodies of water. According to the Environmental Protection Agency, the repeal of the 2015... Read More
WASHINGTON - A far-reaching broadband connectivity should not be dictated by the location of a home or business, but rather should foster economic growth and sustainable communities by being equally accessible by all. That was the overarching message delivered to the House Small Business Subcommittee on... Read More