Trump Wants Payroll Tax Cuts and Hourly Assistance Amid Coronavirus Economic Downturn
Ø Amid plunging oil prices Monday, and coronavirus economic woes President
Trump has said he will press lawmakers to introduce a payroll tax cut, and help hourly workers so that they “do not miss a paycheque”.
Ø “We are going to be asking tomorrow, we're seeing the Senate. We're going to be meeting with House Republicans, Mitch McConnell, everybody discussing a possible payroll tax cut or relief, substantial relief," Trump said speaking at a White House briefing, according to CNN. “We're also going to be talking about hourly wage earners getting help so that they can be in a position where they're not going to ever miss a paycheck."
Ø Tax cuts have not been finalized, but some of the industries considered are airlines, cruises, and hospitality. An expansion of paid sick leave is also being considered. Trump also said they would be working on providing loans for small businesses.
Ø “Everything is one the table” says Senate Finance Chairman Chuck Grassley. Tresaurary Secretary Steve Mnuchin says that the world is not headed for recession, as the conditions are not the same as the 2008 crisis.
Ø The White house has invited wall street executives and bank CEO’s over to discuss the coronavirus outbreak.
Ø Following Trump’s briefing, Senate Minority Leader Chuck Schumer tweeted that Trump’s comments were “glaringly missing” on how his administration plans to combat the spread of the coronavirus and keep the people safe. Instead, Trump seemed concerned only about the stock market, Schumer said.
Ø Allies say Trumps focus on the federal reserve will not enable him to surmount this crisis.
Ø Gary Cohn says that airlines will need to be bailed out in two weeks, and that the .5 percent rate cut by the feds was not enough to curb the economic downturn caused by the virus.
Ø Cohn argued that tax refunds should be distributed faster to facilitate spending.
They Have No Clue
Seems like reality is finally settling in for this administration as the effects of COVID-19 are now more acutely felt on all levels of life. After weeks of denial and a dismissive hand wave to media reports about the consequences of the disease, the Trump Administration is now looking to act. Why now? Could it be that popular support is no longer on the administration's side with regards to the Coronavirus response? Many of the President's allies mocked the hysteria regarding the disease, such as Rep. Matt Gaetz of Florida who donned a gas-mask on the House floor, then later had to quarantine himself due to reports he had been exposed to a conference attendee who tested positive for the virus. Now, even conservatives are having to wake up to the potential devastating effects of this epidemic, not just in terms of life lost, but also logistically and economically.
One of the latest moves planned by the President is pushing for a tax cut, aimed at providing relief for hourly workers. Perhaps realizing his reelection prospects would take a hit if he did not act, Trump is now looking to provide financial relief through the cuts in order to boost the economy. He took the gamble that the virus hype would just fizzle out and fade away without taking a political nose-dive, and if he was right, it could place him on popular vantage ground that could help push him into another term. But that is not where things are trending, at least not at this moment as COVID-19 is now proven to be 3 times more contagious than SARS was in 2002-2003, and has had a greater death toll in a lesser amount of time.
If the epidemic continues much longer, the travel industry will take a huge hit and could require bailouts, something fiscal conservatives loathe to do. Other industries will suffer too. A tax cut is not going to help boost the economy since people are not going out and buying because of fear of the contagion. This administration has no clue what it is doing.
Do You Want to Help the Many, or the Few?
The media and the Democrats are like an art critic who can’t paint: they can only do worse than what they are criticizing.
Following the worst day on Wall Street since 2008, the Democrats took President Trump’s solution and ripped it to shreds.
Trump’s emergency economic bundle included a payroll tax cut and relief for hourly workers affected by the coronavirus outbreak. The payroll tax would immediately put more money into consumers pockets and, thus, back into the economy through the producer. It’s not hard, a payroll tax cut would most likely jumpstart a flailing economy. When combined with the aid to hourly workers in industries affected by the outbreak, it adds up to a nice boost to the economy.
The Democrat’s response: dead on arrival.
The thing is, Obama did the same thing. During the economic downturn in 2011 and 2012, President Obama also rolled out a payroll tax cut and boasted that “the average family has an extra $1,000 in their pocket.” Were the Democrats screaming and crying then about the evils of a payroll tax cut? Nope, because it wasn’t Trump. The Democrats are so infected with their hate of the President that they can’t even come behind a tax cut that will benefit the economy.
So, what is the Democrat’s plan? Their economic package includes paid sick leave for those who self-quarantine, better unemployment insurance, and free coronavirus testing. First off, coronavirus testing is already completely covered by the government. Second of all, the Democrat’s plan only benefits a small portion of the population: those who need to self-quarantine and those who lose their jobs. At the moment, around six-hundred Americans have been infected with the coronavirus, or roughly .00017 percent. I don’t think we need to worry about half the workforce having to self-quarantine or losing their jobs.
For those who are effected by the outbreak, I hope they do get help, but dismissing a tax-cut to focus on a minority of the population isn’t going to work. It’s just another example of doomsday panic.
President Trump has decided to push payroll tax cuts to help fight the economic downturn caused by the coronavirus. Good. But once again we come to a crossroads of thought and action, the almighty and ever legal intention. I don’t like to complain when I see Trump moving in a helpful direction for the American people, but I also can’t stand by silent when he openly admits to doing this for the sake of his political career. His political career IS the American People, and it seems like he still only see’s it as a one-way street. He will do anything he can to help his political career along, and it just so happens that right now that is taking a stand against the economic downturn created by the coronavirus. But I begrudgingly admit that it is at least a start in the right direction. As Gary Cohn points out, the fed cut was not enough, so hopefully the Trump administration can unite behind a solid plan to aid the economy and the American Citizens.
The DOW has jumped 1100 points today due to Trump simply expressing his desire to take economic action due to the virus, so strong policy to help the economy could work very well. Hopefully Republican senators do not work too vociferously to deny economic aid to the American people, as they are reportedly not happy about many of the choices that the Administration is giving them. Republican Senator John Corryn is on record saying that he thinks it is too early to take meaningful action. The problem I see with waiting is that the economic effects are already widespread, South Korea and Italy have essentially quarantined their ENTIRE countries. I do not see this as a situation that can be handled at the PERFECT time. It is either done now, or it will be done too late. Republican senators, begin the process and introduce legislation to aid your people; it is never to early to start, but it can often be too late.