CBS News has learned the White House is considering new tax cuts to boost the economy but the administration is disputing a report that it's considering a payroll tax cut.
The Dow Jones opened slightly lower Tuesday with the Trump Administration considering new tax cuts amid the recent market turbulence. But the White House is disputing a Washington Post report that a payroll tax cut is on the table.
Payroll taxes are taken out of workers' paychecks to fund Social Security and Medicare. If that tax is lowered, people have more take home pay, and it is seen as a way to quickly increase consumer spending - and possibly delay a recession. A majority of economists predict the U.S. is headed for recession by 2021 at the latest.
A slowdown could threaten the President's ability to campaign on the economy heading into the 2020 election. The White House is downplaying concerns.
“The fundamentals of our economy are very strong and you know it. We have more people working in this country right now than ever before in the nation's history,” says Kellyanne Conway, counselor to the president.
On Twitter Tuesday the President retweeted Vice President Mike Pence's comments saying our economy is thriving and the auto industry is roaring back in Michigan.
The Vice President spoke to business leaders there Monday - one day before word from U.S. Steel that it will temporarily lay off hundreds of workers at the state's Great Lakes facility.
The President is also calling for the Federal Reserve to slash interest rates by a full percentage point, an amount the Fed would normally only consider during a recession.
Natalie Brand, CBS News
3 out of 4 economists predict a U.S. recession by 2021, survey finds https://t.co/Bu92tPCtp3
— The Washington Post (@washingtonpost) August 19, 2019
