President Donald Trump said Tuesday he will not rule out possible tax cuts, although he said he is “not looking to do anything at this moment.”
“Payroll tax is something that we think about and a lot of people would like to see that, and that very much affects the workers of our country,” the president said, according to CNN.
The president added, “We’re looking at various tax rate deductions but I’m looking at that all the time… that’s one of the reasons we’re in such a strong economic position.”
The payroll tax consists of a 6.2% deduction on workers’ paychecks, and those funds are often used to fund social programs like Social Security and Medicare.
The last time payroll taxes were temporarily cut was in 2011 and 2012, as the Obama administration wanted to encourage consumer spending during the recession, reported Forbes.
The president believes that the best possible measure to prevent a possible crisis would be the reduction of interest rates to boost the economy, which is the responsibility of the Federal Reserve (Fed).
“Our Economy is very strong, despite the horrendous lack of vision by Jay Powell and the Fed, but the Democrats are trying to “will” the Economy to be bad for purposes of the 2020 Election. Very Selfish,” President Trump said in a tweet.
The inverted yield curve that stock markets experienced on Wednesday last week is fueling rumors of a possible economic recession.
In this context President Trump has repeatedly blamed the Fed for not cutting interest rates.
In fact, the Federal Reserve increased them four times in 2018 and President Trump believes this slowed down the economy.
Despite all this, on Sunday, Aug. 18, President Trump seemed very optimistic on the economy: “I don’t think we’re having a recession. We’re doing tremendously well.”