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Speaking to Baltimore on Thursday night, Trump promised – again – that his government would announce further tax cuts next year, saying that they would be "very, very substantial" , without providing more details.
"We are working on a tax cut for middle-income people that will be very, very inspiring," said Trump, who took the stage just when the Democratic presidential candidates were preparing in Houston for their third debate. "It will be something I think everyone is looking for."
The president's new commitment recalled a promise he made last October before the mid-term elections, when he announced a mysterious last-minute middle-class tax that puzzled government officials. White House, congressional leaders and tax winners in Washington.
The main contributors picked up the message, while stating that there was no agreement on a plan.
"We are going to carry out what I'm calling the" 2.0 tax cuts ", and I say that because I've been talking to the president for a long time about this idea," said Friday the director of the National Council of the Economy, Larry Kudlow. "We will bring together the best ideas from the hill, the administration and the outside world to come up with a new cycle of significant tax relief for the middle class." 39, a recession measure, because I think the economy is very strong.set up something in the middle of next year.That sort of thing.That's so towards the discount gap of Tax 2.0 that we are heading. "
The comments came after Treasury Secretary Steven Mnuchin announced on Thursday that the White House plans to launch a plan called "Tax Cuts 2.0" early next year, aimed at boosting economic growth in the United States. potential tax cuts and incentives for small businesses. – and medium-sized enterprises and aid for the middle class as part of the package.
"Unlike its competitors, the president wants to grow the economy and ensure that the middle classes benefit from tax breaks and that they benefit," Mnuchin said in an interview with CNBC. Thursday, one day after the Oval Office meeting discuss various tax proposals as there is growing concern that Trump's re-election campaign will be thwarted by a possible economic downturn.
Democrats vying for Trump 's post are proposing major new spending programs for the government, funded largely by tax increases for the rich. Their proposals range from the repeal of the 2017 tax law to the cancellation of the cuts for the richest, to the deletion of certain provisions benefiting companies.
Since August, the Trump administration has been striving to keep the US economy from recession, moving from one idea to another, even as it erases any fear of an impending recession that could to be unfortunate as voters go to the polls November 2020.
White House officials have discussed various proposals to keep the US economy moving, from giving workers a financial boost by reducing payroll taxes to capital gains taxes for investors . But officials have put these proposals on hold for the moment, as they would face the political risks associated with setting up another tax break beneficial to the better-off – a strong argument that Democrats use regularly when it comes to Trump's 2017 tax law.
The discussions within the administration come as the budget deficit has exceeded $ 1 trillion, partly because of the tax cuts signed by Trump.
Instead, the President's strategy seems – for now – to focus on the steps that the administration can take that would benefit Americans who work on average, a new impetus for the final adoption of the new Free Trade Agreement. North American and increased pressure for the US Federal Reserve. reduce interest rates.
Trump sought to minimize the risk of a recession while blaming a possible slowdown in the Fed. This week, he called on the central bank, an independent institution of the White House, to reduce interest rates to zero, or even to go into negative territory.
That's much more than what the White House had asked the Fed a few weeks earlier to claim a reduction of at least 100 basis points over a given period.
The president has repeatedly rebuked the Fed, accusing it of weakening the competitiveness of the United States by not lowering interest rates faster and going so far as to call the politicians "Boneheads".
"The United States should always pay the lowest rate," he tweeted Wednesday, while criticizing his own president, Jerome Powell, "Only the naivety of Jay Powell and the Federal Reserve does not allow us to do what other countries are doing is already doing. "
The US economy seems – at least for now – in trouble, with growth of 2.1%. The wages of the workers have increased. Unemployment remains at its lowest level in 50 years. And consumers continue to spend a lot of money at their favorite retailers.
Concerns about a slowdown and a possible general recession have increased since the beginning of August, as the chances of concluding a trade deal with China have multiplied. Several large countries reported weak growth, with the German economy contracting slightly. Several market indicators are blinking red, with the yield curve for US bonds bouncing back (briefly) last week for the first time since the 2007 pre-season.
The central bankers are scheduled to meet next Wednesday and have announced that they could further reduce their rates to help support the economy from the headwinds caused by the Trump government's erratic trade policy.
Haley Byrd from CNN contributed to this report.
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