How a payroll tax cut can actually be valuable to Trump

Invesco Vice Chair of Investments, Krishna Memani, on how a potential payroll tax cut would impact the economy.

White House Economic Council Director Larry Kudlow said Thursday more tax cuts could come during the 2020 campaign.

“You might even see tax cuts 2.0, which would drive additional tax relief and create additional tax incentives for middle class folks, for blue collar workers, for small businesses. ... You might see that during the campaign,” he told FOX Business’ David Asman on “Bulls & Bears.”

His comments came on the heels of President Trump telling reporters Wednesday that he was not “looking at a tax cut now” because “we have a strong economy.”

President Trump asserts there is no need for payroll tax cuts at this time because the U.S. economy is strong.

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However, one investment expert said it would be worthwhile for the administration to consider because it can instantly accelerate a waning economy.

“It actually has a direct impact on consumption, said Invesco Vice Chair of Investments, Krishna Memani, during an interview on "Mornings with Maria."

“One way to think about the payroll tax is actually, it's undoing some of the tariffs that are getting imposed, which are effectively a tax on the consumer because they have to pay higher prices for goods,” he explained.

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