Trump dismisses recession worries, says not prepared for a China deal

Clay Curtis
August 21, 2019

"And most economists actually say that we're not going to have a recession". It was not viewed seriously, given it would be hard to get through the U.S. Congress, an administration official said.

Yet he also said he is considering a temporary payroll tax cut and indexing to inflation the federal taxes on profits made on investments, moves created to stimulate faster growth.

A payroll tax cut, which Trump on Tuesday confirmed he is considering, would temporarily boost workers' paychecks. Millions of USA workers pay payroll taxes on their earnings to finance the Medicare health insurance program for the elderly and Social Security, which provides income payments for retirees.

US President Donald Trump on Tuesday stated he needed to confront China over commerce even when it brought about short-term hurt to the US economic system as a result of Beijing had been dishonest Washington for many years.

Some conservatives, such as anti-tax crusader Grover Norquist, believe Trump has the regulatory authority to add an inflation adjustment to the calculation of capital gains taxes.

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The Pentagon on Tuesday formally notified Congress that the U.S. State Department had approved the possible sale of 66 F-16 fighter jets to Taiwan, which Beijing considers a renegade province.

Trump speaks to reporters before boarding Air Force One to return to Washington.

Republican Senator Rick Scott of Florida has offered legislation on this point.

Under Washington's "one-China" policy, the US government officially recognizes Beijing and not Taipei, while assisting Taiwan. Indexing capital gains would only expand the economy by about 0.11 per cent in the long-run, according to the Tax Foundation. "I'm not talking about doing anything at this moment".

"Hilariously, two of Trump's ideas for stimulating the economy are 1) cutting the corporate tax rate a little more (after cutting it a lot didn't do much), and 2) indexing capital gains to inflation", O'Brien tweeted on Tuesday. "In fact, if the Fed would do its job, I think we'd have a tremendous spurt of growth, a tremendous spurt". "And it's something that would be very easy to do", he said. Articles appear on euronews.com for a limited time.

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