Trump urges House Democrats to propose payroll tax cut
President Trump is calling for House Democrats to propose a one-year payroll tax cut, as he looks to mitigate the impact of the coronavirus on the U.S. economy.
“The Democrats in the House should propose a very simple one year Payroll Tax cut,” Trump tweeted late Monday. “Great for the middle class, great for the USA!”
The Democrats in the House should propose a very simple one year Payroll Tax cut. Great for the middle class, great for the USA!
— Donald J. Trump (@realDonaldTrump) March 2, 2020
The tweet comes amid concerns that the coronavirus will dampen the economy in an election year. Trump has been hoping to make the economy a key part of his reelection campaign, but a worsening economy due to the outbreak could be an obstacle to him winning a second term.
Payroll tax cuts are considered an option for economic stimulus. Former President Obama enacted a temporary payroll tax cut during his presidency in an effort to help the middle class in the years following the Great Recession.
A temporary payroll tax cut could help the middle class on a short-term basis. But it could also add to the debt and potentially hurt Social Security, which is financed through payroll taxes.
This isn’t the first time Trump has floated a payroll tax cut. Last summer, when there were signs that a recession could be on the horizon, the president said that the White House was looking at a payroll tax cut, but then quickly reversed himself.
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