Trump considers new tax cut to boost USA economy

Wednesday, 21 Aug, 2019

White House discussions to possibly press for a payroll tax cut comes as fears of a recession mount within Trump's inner circle of aides, and as they pursue ways to salvage confidence in the economy.

"We're doing tremendously well, our consumers are rich, I gave a tremendous tax cut, and they're loaded up with money", Mr Trump said. Another senior administration official cautioned that a payroll tax cut was not under serious consideration. "Consumers are working, at higher wages".

The White House did not immediately respond to a request for comment from Reuters. The tax was reset to 6.2% in 2013, the Post said.

Economists polled by NABE expressed concern that USA tariffs on China and other countries, as a well as higher federal budget deficits, could hurt economic growth.

Earlier on Monday, a survey was released showing that a majority of economists expect a USA recession in the next two years- right around the time of the 2020 election in which Trump is standing for a second term.

"I think the word "recession" is inappropriate because it's just a word that certain people, I'm going to be kind, certain people in the media are trying to build up because they'd love to see a recession", Trump said.

In an exchange with reporters in Morristown, New Jersey, shortly before taking off for Washington on Sunday evening, Trump brushed aside the possibility of a downturn, saying, "I don't see a recession".

"Other countries say THANK YOU to clueless Jay Powell and the Federal Reserve", Trump wrote in a tweet.

The White House earlier Tuesday suggested a payroll tax cut is not happening anytime soon.

Target number one is the Federal Reserve, which Trump, in one of his many breaks with convention, has been browbeating for months over its reluctance to cut interest rates.

Trump and his aides have made the up-to-now strong economy a key theme in his re-election effort, and they are doing all they can to blame others for any economic problems. He has previously called for a one percentage point cut.

"If the Fed would do its job, I think we would have a tremendous spur of growth", he said.

Even with the talks stalled for now and the threat of greater tariffs and other trade restrictions hanging over the world economy, Mr Kudlow said on Fox News Sunday the United States remained "in pretty good shape". Mr. Trump decided last Wednesday to postpone until December 15 tariffs on about 60% of an additional $300 billion of Chinese imports, granting a reprieve from a planned move that would have extended duties to almost everything the USA buys from China.