President Trump Harry Reid: "The decriminalization of border crossings is not something that should be at the top of the list" Recessions happen when presidents neglect fundamental issues MORE Tuesday confirmed that the White House was discussing a temporary reduction in payroll taxes as a strategy to boost the economy, even though it keeps the country's economic outlook still strong.
"We think the payroll tax needs to be addressed and many people would like to see it," Trump said Tuesday during an exchange with reporters at the White House.
"We are considering various tax cuts. But I watch it all the time anyway, "he added.
The president said the administration was also considering taking action on the capital gains tax, but warned that nothing had been decided. He suggested that he could index capital gains on inflation unilaterally, even though such a decision would likely face the challenges of Democrats in Congress.
Trump has contested the onset of a recession after reports of a temporary reduction in the payroll as a way to revive the economy amid fears of an impending recession. The White House Monday and earlier Tuesday denied this information and insisted that rumors of an economic downturn were exaggerated.
The Washington Post announced Monday for the first time that the government was discussing a reduction in payroll taxes.
People pay social charges to finance social security and health insurance. Former President Obama had enacted a temporary reduction in payroll taxes during his term in order to revive the economy.
Reducing these taxes could temporarily help the middle class, but could also increase the deficit and possibly harm the social protection programs that they finance.
Trump expressed confidence and insisted that the United States was in a strong economic position, but its calls for interest rate cuts and possible tax cuts are generally measures to revive an economy. not very dynamic
The president blamed the media for fueling speculation about a recession. He reiterated Tuesday his suggestion that the Federal Reserve would curb the economy and should reduce interest rates by 100% "over a period of time".
He added that the central bank is "psychologically important" for the health of the economy.
Some economists have suggested that Trump's trade war with China has sparked signs of a potential recession. They noted that companies bore the burden of tariffs and Trump's unpredictability further impeded growth.
Trump pledged to levy additional tariffs on China from next month, but then delayed some of the duties, fearing to affect US consumers during the holiday season.
On Tuesday, the president showed himself animated when he defended his position vis-à-vis China, insisting that the fight with Beijing is more important than any potential short-term economic disadvantage.
"I do it, whether good or bad for your statement that we are going to" sink into a recession for two months, "he said." The point is that someone had to face China. "
-Updated at 15:25