White House makes contingency plan for recession, including possible payroll tax cut

Michael Collins

WASHINGTON – As President Donald Trump insists the economy remains strong, White House officials reportedly have begun looking for ways to prevent a recession, including pushing for a temporary payroll tax cut.

The talks are in their early stages and include other possible tax breaks, The Washington Post and The New York Times both reported Monday.

But White House economists reportedly have drafted a white paper looking at a payroll tax deduction to put more money into workers’ paychecks.

Trump reportedly has not been briefed on the idea, and it’s not clear whether he would go along with the idea. Congress also would have to approve such a plan.

President Donald Trump speaks with reporters before boarding Air Force One at Morristown Municipal Airport in Morristown, N.J., Sunday, Aug. 18, 2019. (AP Photo/Patrick Semansky)

A White House official disputed the reports late Monday, saying “more tax cuts for the American people are certainly on the table, but cutting payroll taxes is not something under consideration at this time.”

Trump has dismissed fears that the economy is heading for a recession.

"I don't think we're having a recession," he told reporters on Sunday before boarding Air Force One for his return to Washington after spending 10 days at his golf course in New Jersey. “We’re doing tremendously well. Our consumers are rich. I gave a tremendous tax cut and they're loaded up with money."

Trump's top economic advisers also predict — at least publicly — the economy will remain strong through 2020 and beyond.

More: 'No recession in sight' says Trump's top economic adviser

More: A possible recession? Treasury yields invert, sounding economic alarm bells

This article originally appeared on USA TODAY: Economy: White House mulls contingency plans to avert recession