Trump administration considers payroll tax cut to boost economy

Trump administration considers payroll tax cut to boost economy

Seconds after White House Principal Deputy Press Secretary Hogan Gidley repeated the Trump administration's denial that it is considering a payroll tax cut to stave off a recession, he accidentally admitted that he was present at a recent meeting where that exact thing was discussed.

Payroll taxes were cut temporarily during President Barack Obama's term in 2011 and 2012, in an effort to counteract a sluggish recovery from the 2008 recession.

WASHINGTON-President Donald Trump and top White House officials dismissed concerns that economic growth may be faltering, saying on August 18 they saw little risk of recession despite a volatile week on global stock markets, and insisting their trade war with China was doing no damage to the United States.

The results show 46 percent expect at least one more rate cut this year from the Fed, while about a third see policy holding where it is now, with 2.25 percent as the top end of the policy range. "I gave a tremendous tax cut and they're loaded up with money", Trump said on Sunday.


Despite Trump's bravado on social media and previous bullish public comments, his White House spokesman Hogan Gidley confirmed talks were under way on some form of stimulus.

He returned to his lauding the economy under his watch on Monday, firing off several tweets meant to cool fears about a recession.

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.

Payroll tax cuts have remained popular with Democrats largely because they are seen as targeting working Americans, and the money is often immediately spent by consumers and not saved.


He said Democrats were trying to "will" the economy to deteriorate ahead of the 2020 election.

Trump has relentlessly attacked the politically-independent central bank for raising rates in 2018, with his frustration reaching the point where he began asking aides about his ability to oust the Fed chief in discussions that were reported by Bloomberg News in December. Very Selfish! Our dollar is so strong that it is sadly hurting other parts of the world, ' he tweeted.

President Trump however dismissed concerns of an upcoming slowdown, insisting the United States is doing "tremendously well" despite an ongoing trade war with China.

"If that happened, our Economy would be even better, and the World Economy would be greatly and quickly enhanced-good for everyone!" he said.


Another Trump target is the news media. I don't think we're having a recession. They are spending at a rapid pace. Concern over the outlook has roiled financial markets and sent Treasury yields toward records lows, flashing recession-risk warnings as investors increase bets that the USA central bank will ease rates again.

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