White House denies it's considering payroll tax cut to stimulate economy
The White House on Tuesday denied reports that it is considering a temporary payroll tax cut to stimulate the economy.
Some administration staffers have reportedly discussed indexing capital gains to inflation, but there would likely be several legal obstacles if that idea were to gain traction. Others, like Florida Sen. Rich Scott, have suggested using tariff money for tax cuts.
The payroll tax cut was floated as a possible way to jumpstart the slowing U.S. economy. Gross domestic product grew at an annualized rate of 2.1 percent in the second quarter, down from 3.1 percent the prior quarter, according to July data release by the Commerce Department.
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 wouidn'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.
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Blake Burman contributed to this story.
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