Trump considering temporary payroll tax cut to stimulate economy
President Trump says he's thinking about a temporary payroll tax cut to stimulate the U.S. economy.
Speaking to reporters in the Oval Office, Trump said Tuesday his administration was looking into a potential payroll tax cut, and also indexing capital gains to inflation. Earlier in the day, a White House press official denied reports that a temporary payroll tax cut was a possibility, though low-level staffers discussed the idea on Monday.
"Payroll tax is something that we think about, and a lot of people would like to see that," Trump said. "That very much effects the workers of our country. We have more people working today than we've ever had before in the hitsory of our country."
Growth in the American economy appears to be slowing. The nation's gross domestic product grew at an annualized rate of 2.1 percent in the second quarter, down from a 3.1 percent growth rate in the prior quarter, according to July data released by the Commerce Department.
Florida Sen. Rich Scott, have suggested using tariff money for tax cuts.
Former Trump economic adviser Stephen Moore told FOX Business a payroll tax cut won't have much of an impact, suggesting it wouldn't "pump up the economy a whole lot."
Proceeds from the 6.2 percent payroll tax, which in 2011 was briefly lowered to 4.2 percent by President Obama, are used to fund the Medicare and Social Security programs.
A tax cut wouldn't be the first under the Trump administration. In 2017, Congress passed the Tax Cuts and Jobs Act, which reduced the corporate tax from 35 to 21 percent, and lowered personal income taxes for the majority of Americans.
CLICK HERE TO READ MORE ON FOX BUSINESS
Blake Burman contributed to this story.