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Trump considers new tax cut to boost US economy | Trump considers new tax cut to boost US economy |
(32 minutes later) | |
President Donald Trump has confirmed he is considering a new, temporary payroll tax cut to help boost the US economy. | President Donald Trump has confirmed he is considering a new, temporary payroll tax cut to help boost the US economy. |
White House officials had earlier dismissed reports that the administration was discussing the move. | White House officials had earlier dismissed reports that the administration was discussing the move. |
But speaking to reporters, the president said a "payroll tax is something that we think about, and a lot of people would like to see that". | But speaking to reporters, the president said a "payroll tax is something that we think about, and a lot of people would like to see that". |
US workers pay payroll taxes on their earnings to finance health insurance, social security, and pensions. | US workers pay payroll taxes on their earnings to finance health insurance, social security, and pensions. |
Mr Trump has been talking up the US economy in recent days amid growing unease about a potential recession. "We're very far from a recession," he told the reporters. | Mr Trump has been talking up the US economy in recent days amid growing unease about a potential recession. "We're very far from a recession," he told the reporters. |
A strong economy is seen as key to his re-election prospects in 2020, but continuing trade tensions with China have sparked concerns about an imminent slowdown. | |
Tax cuts when the president took office helped boost the economy and sparked a surge in share prices on Wall Street. But many economists think the impact of those cuts is starting to wane. | |
The president said: "We're looking at various other tax reductions - but I'm looking at that all the time anyway. | |
"Tax reductions - that's one of the reasons why we're in such a strong economic position." | |
The president again pressed the Federal Reserve to cut interest rates. "We're looking for a rate cut, we could be really greatly helped if the Fed would do its job and do a substantial rate cut." He has previously called for a one percentage point cut. | |
Mr Trump also spoke about continuing trade tensions with China, hinting that a deal with Beijing could still be some way off. | |
"China's [economy] had the worst year they've had in 27 years. They want to make a deal with us, but I can tell you I'm not ready to make a deal unless they are going to make the right kind of deal." |