Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Trump looking at possible tax cuts amid economic jitters

EconomyAug 20, 2019 07:52PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. U.S. President Donald Trump answers reporters questions in the Oval office of the White House In Washington

By Steve Holland and Lisa Lambert

WASHINGTON (Reuters) - President Donald Trump said on Tuesday his administration was considering potential tax cuts on wages as well as profits from asset sales, and sought to play down market anxieties that the world's top economy could be heading for a recession.

Speaking to reporters during a White House visit by Romanian President Klaus Iohannis, Trump said "we're looking at various tax reductions," adding that a "payroll tax is something that we think about."

Recession fears were stoked last week when bond investors briefly demanded a higher interest rate on 2-year Treasury bonds than for 10-year Treasury bonds, a potential signal of lost faith in near-term economic growth.

Trump dismissed fears of a slowdown, extolling low unemployment and a rising stock market over his tenure.

"I think the word "recession" is a word that's inappropriate...We're very far from a recession," he said.

The Washington Post reported a temporary payroll tax cut was under consideration to juice growth, but Trump said the White House has been weighing tax cuts for some time.

A slowdown would be bad news for Trump, who is building his 2020 bid for a second term around the economy's performance, but whose year-long trade war with China is weighing on growth.

On Tuesday, Trump said he would not need the approval of Congress to link a tax on profits from asset sales, known as capital gains, to inflation. According to tax code experts, investors would pay far less capital gains tax if it was linked to an inflation index.

"I'm not talking about doing anything at this moment, but indexing is something that a lot of people have liked for a long time. And it's something that would be very easy to do," he said. "It is something I am certainly thinking about."

Former Vice President and Democratic presidential hopeful Joe Biden, campaigning in Iowa, said lowering the capital gains tax would only help the wealthy.

"The route that the president has us going down is a big mistake," Biden told reporters after a campaign rally. "We should be focusing on how you re-empower the middle class, we should be rewarding work, not wealth."

Payroll taxes fund the Medicare health insurance program for the elderly and Social Security, which in turn provides income payments for retirees.

Lowering them temporarily could boost consumer spending, a key driver of the U.S. economy, but it would also deprive the government of tax revenues, at least in the short term.

At the end of 2017, Trump signed a massive tax overhaul passed by the Republican-led Congress and has since promised to follow up with another round of major changes.

Trump looking at possible tax cuts amid economic jitters
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (14)
bomz bomzov
bomz bomzov Aug 21, 2019 3:09AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The United States may have the lowest taxes in the world. Taxes of the most powerful economy are taxes from all world trade. such disproportionate revenues of the government led to the degradation of political bureaucracy, life in loans and socialist demagogy.
Bobster Bambino
Bobster Bambino Aug 20, 2019 11:42PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Trump is a joke. Just wants to pad his wealth. Trying to lower dividend capital gains which are already too low for the wealthiest. Rember when he was running “Im coming after wallstreet”
Balaji Ramanathan
Balaji Ramanathan Aug 20, 2019 11:36PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The economy is so great it requires tax cuts, a huge rate cut from the fed and quantitative easing to pull it out of the hole it is in.  Somebody forgot to remind our fearless leader that when you find yourself in a hole, the first thing you do is stop digging.  But he is busy digging furiously, picking trade wars with the rest of the world while the US economy goes down the tubes.  Remember, everybody will make sure you own this recession.  It will forever be referred to as the Trump Depression.
Thom Miller
Thom Miller Aug 20, 2019 9:15PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Why did everyone know Trump would ruin Obama’s strong economy.......except Trump. Oh, and Larry “There Will Be No Recession in 2008” Kudlow.
Andrew carson
Andrew carson Aug 20, 2019 9:15PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Obama had zero rate hikes. Lame duck.
bomz bomzov
bomz bomzov Aug 20, 2019 9:15PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Andrew carson   banana rise debt 1 trillion per year and GDP 0.6 trillion per year.
Derek Klardie
Derek Klardie Aug 20, 2019 9:08PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The greatest economy ever. HA! Ha! HA! Why would you need tax cuts, Q.E. or lower interest? You keep saying it's the greatest economy but you keep begging for more stimulus. This is going to end very much badly...
Jack Zhang
Jack_A Aug 20, 2019 9:08PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
because he's a liar from the beginning
bomz bomzov
bomz bomzov Aug 20, 2019 9:08PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
bomz bomzov
bomz bomzov Aug 20, 2019 9:08PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Jack Zhang  to late
Tom OKray
Tom OKray Aug 20, 2019 8:31PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Any tax cuts are DOA in the house.
bomz bomzov
bomz bomzov Aug 20, 2019 8:31PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
taxes cut bury socialism forever
David David
David9 Aug 20, 2019 6:21PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I have been telling you guys ... Trump is shaken to his core. He knows we are already in a recession. He is looking for all the ways to stimulate, because if he can't get it going again, he is done. No farmers, Latinos, Asians, or Whites are going to vote for him.
Kevin Avila
Kevin Avila Aug 20, 2019 6:21PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Wong again...
David David
David9 Aug 20, 2019 6:21PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I read alternative news, and all of them said Trump will have a hard time winning. Also The Mooch said, Trump will probably decide to drop out in March because he cannot stand to lose the election. He knows he have a small chance so he will drop out and take the easy road to retirement.
Andrew carson
Andrew carson Aug 20, 2019 6:21PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
There's always the Dems... but nobody really wants that..
Tom OKray
Tom OKray Aug 20, 2019 6:15PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
He can cut the paroll tax to zero, but unless the federal income tax rates are also cut you'll still owe at the end of the year bigtime. The ploy he is to cut the capital gains tax to help all his rich buddies and corporations who would reap all the benefits just like with his tax cuts.
bomz bomzov
bomz bomzov Aug 20, 2019 6:15PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
worry about your own budget. learn to live under socialism. forms of American socialism take amazing forms.
Lloyd McCord
Lloyd McCord Aug 20, 2019 5:11PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
More dribble from Reuters. Like the socialist Democrats, these Canadians are praying for recession hoping it will affect the 2020 election, but it won't. President Trump now has the support of more than half of all Latinos and African Americans now. America has become "woke" to the fact that the Obama-Clinton cabal lied to and cheated this country for years. Coming investigations will reveal more. Feces is about to hit the fan over their failed coup. Good times!
bomz bomzov
bomz bomzov Aug 20, 2019 5:11PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
tax cuts in the usa will cause socialists to lose jobs around the world.
Tilman Röckl
Tilman Röckl Aug 20, 2019 4:40PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Payroll tax cut will not happen. Deficit is already blown up by the last tax cut. And that money has gone into stock buybacks (not complaining, since I made a ton of money off of it). From here on out it's rough sea. I'll keep my cash dry...
Andrew carson
Andrew carson Aug 20, 2019 4:33PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
A lowered capital gains tax from here on out would be great!
bomz bomzov
bomz bomzov Aug 20, 2019 3:48PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
do not set asside tomorrow that you may do today
Chris Cummins
Chris Cummins Aug 20, 2019 3:48PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
that is not the quote
David David
David9 Aug 20, 2019 3:48PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The quote should be ... do not do onto yours what you do not what others do on to you. Remember, China will one day be the biggest economy and will hold all the cards. They have 1.4B consumers so this is bound to happen. By then, maybe they will put on all the tarriffs they see fit, block Apple or some company from doing business around the world and declared national security risks.
David David
David9 Aug 20, 2019 3:00PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
US is already in a recession. We do not know until later we look back and say, yes the recession started when Trump tries to do tariifs on China.
bomz bomzov
bomz bomzov Aug 20, 2019 3:00PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
China is already in the grave
jason lin
jason lin Aug 20, 2019 2:56PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Why tax cuts? I thought we have best economic, do we?
Show previous replies (3)
Al Vlaj
alvlaj Aug 20, 2019 2:56PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
bomz bomzov no idea what you mean.
bomz bomzov
bomz bomzov Aug 20, 2019 2:56PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Al Vlaj  the government does not produce surplus value and does not earn anything. taxes had to be reduced in the 90s. it is an objective market reality.
Chris Cummins
Chris Cummins Aug 20, 2019 2:56PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
you still make no sense.
Al Vlaj
alvlaj Aug 20, 2019 2:56PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
bomz bomzov i understand words and their meanings and complex concepts, but nearly all of your posts are a string of words that mean very little or sound like you are trying to sound philosophical (but dont even come close to the mark).
bomz bomzov
bomz bomzov Aug 20, 2019 2:56PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Al Vlaj  such wrong English leads democrats to great concern
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email