Trump Pans New Stimulus Payments Directly to Americans in Favor of Payroll Tax Cuts for Businesses
Richard Moorhead
|
President Donald Trump suggested he’s more amenable to the prospect of future payroll tax cuts in order to simulate economic growth in light of the coronavirus recession, a policy proposal that could prove useful to those who have kept their jobs but useless to the millions of Americans who have lost their full-time jobs in the wake of the recession.
The President stated he’s more amenable to using payroll tax cuts during an Oval Office interview on Tuesday.
https://twitter.com/JStein_WaPo/status/1255224002601254914
President Trump has recently received advice on economic recovery strategies from Art Laffer, a former Reagan administration supply side economist. It’s questionable how pertinent Laffer’s economic advice could prove to Trump in 2020, an era considerably different than the 1980’s, where Americans enjoyed far more abundant middle class career fields and a healthy manufacturing sector. Reagan’s supply-side economic policies were also enacted in an economy that wasn’t in immediate recovery from a sharp recession.
Workers in fields such as construction and energy are more likely to have lost their payroll income in the wake of the recession. These workers, who make up a sizable share of President Trump’s base, would stand to benefit far more from an expanded TrumpBux proposal than a paywall tax cut they’re not going to benefit from in the near future.
Trump’s blue collar base is going to get shafted by this.
From a family member who has lost only source of income: “Payroll tax cut??? Yeah, that will give people more money in their paycheck. What paychecks?”
“Real America here and we need fucking money, period.” https://t.co/G7cGxgLtwb
— Amber Athey (@amber_athey) April 28, 2020
Other Trump administration figures such as Larry Kudlow and Steve Mnuchin have been far more amenable to the notion of an expanded TrumpBux program in the wake of the recession, with the Treasury Secretary having been originally said to support two $1000 payments to middle class tax filers as a means to stimulate the economy.
Larry Kudlow says he’s open to hearing Rep Tim Ryan’s $2000/mo UBI plan for all adults making under $130k per year 👀
— Alison Arkin (@Cronikeys) April 24, 2020
President Trump should look closely at the benefits of additional TrumpBux packages to individuals before signing onto a payroll tax much of his core constituency of American workers wouldn’t even benefit from.
Share:
