Trump extols the merits of the economy but a discussion about wages reveals fears of recession

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Trump shared more than a dozen tweets from allies and supporters Tuesday morning, endowed with economic power.

"#Trump is thrilling this economy as a well tuned engine," said a tweet. In another article, Trump's controversial media and market suggestions of a recession may be looming, stifling media coverage of economic concerns. low ratings.

Several senior officials told CNN that they were unaware of the discussions on payroll relief, revealing how debates were in their infancy.

The Washington Post reported the talks for the first time Monday.

A White House official denied on Monday for CNN that the project was under consideration "at that time".

"As Larry Kudlow said yesterday, further tax cuts for the American people are certainly possible, but the reduction in payroll taxes is not envisaged at the moment," he said. said the official in a statement.

Millions of US employees pay 6.2% of their salary in "payroll taxes", which are typically used to fund social protection programs, such as Social Security and Medicare.

It would not be the first time that a sitting president would use it as a political maneuver.

Former President Barack Obama, wishing to be re-elected, signed in 2012 a law extending the reduction of workers' social security contributions and unemployment benefits as part of the economic recovery plan put in place by the administration to following the financial crisis.

Rather than pay a 6.2% tax on payroll, they paid 4.2%, putting $ 83 more per month in the pocket of American workers earning $ 50,000, for example.

Tax cuts on wages, like all tax cuts, increase the deficit in the short term. But they attract collaborators worried about a potential recession because they are very popular and are designed to boost US spending, which accounts for about two-thirds of the economy.

"A payroll tax would definitely reduce federal revenues and worsen the federal deficit," Kyle Pomerleau, chief economist at the Tax Foundation, told CNN.

The country 's debt has grown more and more under Trump' s administration, in part because of a $ 1,500 billion tax cut that came into effect in 2017 and one year. important spending program approved by Congress.
Trump had promised in the 2016 election to eliminate the federal debt.
The White House Management Office budget predicted that the deficit would exceed $ 1 trillion for the full fiscal year, ending September 30th. The unparliamentary Congressional Budget Office predicted in May a slightly smaller deficit of $ 896 billion, exceeding $ 1 trillion from 2022.

CNN's Jim Acosta and Veronica Stracqualursi contributed to this report.

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