President Donald Trump is looking at ways to help boost the U.S. economy and told reporters on Tuesday, Aug. 20, at the White House that the Trump administration was considering potential tax cuts on wages, which would immediately inject funds into workers’ paychecks.
A tax cut on profits from asset sales is also under consideration, but the president was quick to downplay any talk of a recession. “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.
“We’re very far from a recession,” he said. “We’re looking at various tax reductions,” adding that a “payroll tax is something that we think about.”
“We’re in such a strong economic position. We’re, right now, the number one country anywhere in the world by far …. Europe’s got a lot of problems. Asia’s got a lot of problems,” he said.
He pointed a finger at the Federal Reserve and criticized them for not keeping growth going. “If the Fed would do its job, I think we would have a tremendous spur of growth,” he said.
Quantitative tightening, was “very bad to do,” said the president. “You have to be proactive,” he said, calling for another rate cut, and used the European Union as an example for cutting rates.
“I would love to do something on capital gains, we’re talking about that, that’s a big deal, it goes through Congress, [cutting] 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 in our country and we have a lot of workers,” Trump said.
“Payroll taxes, I’ve been thinking about payroll taxes for a long time, whether or not we do it now or not—it’s not being done because of recession [talk],” he said.