Speaking during an interview on Thursday, White House economic adviser Larry Kudlow said President Donald Trump may unveil new tax cuts before the November 2020 presidential election.
On the Fox Business show “Bulls & Bears,” Kudlow said that while Trump mentioned on Wednesday of this week that he wasn’t looking at any tax cuts at this moment, that doesn’t mean they’re totally off the table.
“What he was referring to was something immediate or urgent or, you know, anti-recession — we just don’t buy that scenario,” Kudlow said.
“Before the election … Yes, in fact, you might even see tax cuts 2.0, which would drive additional tax relief and create additional tax incentives for middle class folks, for blue-collar workers, for small businesses,” said Kudlow.
“Additional incentives, additional tax cuts — and you might see that during the campaign, to be perfectly honest.”
“There is nothing in the near term, that’s what the president was getting at,” Kudlow also said. “We believe the economy is quite healthy. We expect some relief on short-term interest rates coming up from the Fed and so forth. But longer-run, why not?”
“The tax code can use much more reform, right, much lower marginal rates for individuals for businesses and so forth. We made tremendous progress in 2017, 2018, 2019 — but we have more work to do.”
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Kudlow also addressed whether the tax cuts would be payroll tax cuts: “I don’t want to get ahead of the curve, but highly unlikely we will go to some sort of … short-term payroll tax cut fix. It doesn’t work, it never works, it has no lasting impact. We’re looking at incentives.”
“The personal tax rates could easily be lowered and probably the brackets could be shrunk,” he continued. “That’s a thought. Small businesses, for example, could easily benefit from additional tax reform. For example, you know LLCs might even benefit. We might even kind of work through a way to help our friends in some of the states [that] are concerned about the shrinkage of the tax deductions there.”
See the tweets below — and share your thoughts:
“Tax cuts, deregulation, and an Administration dedicated to growing business have allowed the U.S. economy to flourish. The resulting surge in job creation and record low unemployment has put the American worker in the driver’s seat.“ @SecretaryRoss https://t.co/nN2bhDycq5
— Donald J. Trump (@realDonaldTrump) August 21, 2019
Had a great conversation with my friend @larry_kudlow yesterday about our economy.
When we get back from recess, we should immediately start working on a plan to reduce taxes for middle-class families & workers by the amount the Treasury is collecting in tariffs.
— Rick Scott (@SenRickScott) August 22, 2019