Trump Administration Considering Payroll Tax Cut As More Economists Express Recession Concern
Despite assurances from President Donald Trump that the economy is better than ever, some White House aides have reportedly begun to consider a payroll tax cut in the hope of postponing a weakening economy.
Several aides spoke to The Washington Post Monday under the condition of anonymity, saying that the talks about a potential tax cut are in the early stages and just one possible plan regarding the economy.
.....The Fed Rate, over a fairly short period of time, should be reduced by at least 100 basis points, with perhaps some quantitative easing as well. If that happened, our Economy would be even better, and the World Economy would be greatly and quickly enhanced-good for everyone!
— Donald J. Trump (@realDonaldTrump) August 19, 2019
According to NPR, Vice President Mike Pence echoed Trump's sentiments regarding the economy during a speech on Monday, telling the Detriot Economic Club, "Despite the irresponsible rhetoric of many in the mainstream media, the American economy is strong. And the U.S. economic outlook remains strong as well."
However, an Associated Press report released Monday indicates that 74 percent of economists surveyed by the National Association for Business Economics expect the U.S. to enter into a recession no later than 2021.
The survey was conducted between July 14 and August 1 where 34 percent said they think the economy will head into recession by 2021. Thirty-eight percent stated that the recession would occur sometime in 2020 while 2 percent said the recession would happen this year.

Some have been concerned that a recession could cost Trump reelection in 2020 as the president has made the economy a central point of his campaign. The president has frequently used unemployment rates and consumer spending as talking points when speaking at rallies and to the media, as well as through Twitter.
In addition to directing his ire at Powell, the president has accused other countries, including China, of working against America and its economic interests and stated that the media is rooting for a recession.
"The Fake News Media is doing everything they can to crash the economy because they think that will be bad for me and my re-election. The problem they have is that the economy is way too strong and we will soon be winning big on Trade, and everyone knows that, including China!," Trump wrote on Twitter on Aug. 15.
The Fake News Media is doing everything they can to crash the economy because they think that will be bad for me and my re-election. The problem they have is that the economy is way too strong and we will soon be winning big on Trade, and everyone knows that, including China!
— Donald J. Trump (@realDonaldTrump) August 15, 2019