- President Trump pressed Democrats on Monday night to pass a "simple' tax cut and said it would boost the middle class' finances.
- "The Democrats in the House should propose a very simple one year Payroll Tax cut,"he tweeted.
- The tweet comes amid heightened concerns that the virus will slow down the US economy.
- A recent poll from Business Insider found that 78% of Americans are worried that the coronavirus will impact economic growth.
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President Trump pressed Democrats on Monday night to pass a "simple" tax cut that would last only a year, saying it would be a boost for the middle class.
"The Democrats in the House should propose a very simple one year Payroll Tax cut,"he tweeted. "Great for the middle class, great for the USA!"
The tweet comes amid concerns that the coronavirus would damage US economic growth and even trigger a recession given the shutdown of factories in China and the ensuing disruption within global supply chains.
A recent Business Insider poll found that an overwhelming majority of Americans — or 78% — are worried that the virus will slow down the economy.
The Fed slashed interest rates on Tuesday in its biggest cut since the 2008 financial crisis, aiming to bolster economic confidence.
The Washington Post reported on Friday that the White House is mulling over different steps to shore up economic confidence and contain the fallout, such as a targeted tax-cut package. Republicans behind the scenes are starting to brace for the effect the coronavirus could have on Trump's odds for reelection.
The coronavirus is spreading around the world and scores of new cases are diagnosed daily. The death toll from COVID-19, the respiratory illness caused by the virus, has surpassed 3,000 people, and the virus has infected over 90,000. In the U.S., there are 100 reported cases.
Payroll taxes are levied on workers' wages to fund Social Security and Medicare, two of the largest federal entitlement programs. Tens of millions of Americans pay the 6.2% tax. Cutting it would add extra money on their paychecks and inject extra consumer cash into the economy.
The Trump administration last weighed a payroll tax cut in August amid fears of a recession induced from its trade war with China. The president publicly ping-ponged between considering it and denying it was under consideration before appearing to abandon the move.
Taxes on payrolls were last cut to 4.2% in 2011 and 2012 to reinvigorate the economy's sluggish growth after the Great Recession, and the Obama administration allowed it to kick back up in 2013.