White House officials and congressional Republicans are working on a new tax cut proposal, according to a report from The Washington Post.
The talks are still in early stages, but President Donald Trump is reportedly adamant to release another package of economic stimuli before the 2020 presidential election.
The president, those familiar with his thinking claim, wants to stress the differences between himself and Democratic White House hopefuls, many of whom have criticized his 2017 tax cut as a giveaway to the rich, and signaled a willingness to tax corporations and the wealthiest Americans more aggressively.
Trump wants the 2020 election to be a referendum on his economy, insiders claim.
In a statement, the top Republican on the House Ways and Means Committee, Kevin Brady, confirmed the speculation.
“We are having those discussions with the White House, we’ll be engaging with them further, and we’ll have discussions with Republicans, too, in the House about what we think the most pro-growth elements can be the most pro-innovation,” Brady explained.
“And I think the key is to make permanent some of the key provisions as well in tax reform,” he said.
The congressman added that the issue is a top priority for Trump, which comes as no surprise, as the Washington Post notes, given that the economy is growing slower than expected. It grew at a 1.9 percent annualized rate — falling short of predictions — even with the Federal Reserve cutting interest rates in order to boost it.
Furthermore, the market is slowing down — as are spending increases — but the federal deficit is increasing, having drowned close to $1 trillion annually.
In the last year, the U.S. gained 675,000 millionaires pic.twitter.com/LE7pC981xI
— Bloomberg TicToc (@tictoc) November 1, 2019
The stimulus package would almost certainly not be supported by the Democratic-controlled House of Representatives, but Trump and his allies are reportedly “hopeful it could give them a new platform to run on in 2020.”
According to a senior administration official, a “wide range of proposals” is being considered, and it is not only tax cuts that the president is in favor of. Trump has also supported indexing capital gains to inflation, and expressed readiness to reduce the payroll tax.
However, according to insiders, the president frequently changes his opinion on the issue.
According to North Carolina Republican Mark Meadows, a new economic stimuli package would be “valuable for everybody.”
“The president wanting to reduce taxes to working America is a plus, will be viewed as a plus, but not just for Republicans, for Democrats, as well,” Meadows said.
In August, Trump floated the idea of cutting payroll taxes, but backtracked within a week.
According to economists, such measures could help delay a recession, which could be around the corner.