News

Trump floats temporarily eliminating the payroll tax to stimulate the economy amid coronavirus fears

nearvideo trump praises task force response to coronavirus

President Trump addresses the media following the meeting with the legislators on coronavirus-on Capitol Hill.

President Trump on Tuesday floated the idea to temporarily do away with the payroll tax, in order for the US economy a boost as it struggles amid fears about the Corona Virus outbreak.

Trump suggested reducing the payroll tax for employers and employees by 14.4 percent to zero during a lunch with Republican senators, where the economic response to the coronavirus was the main subject of conversation.

In addition, sources told Fox News that Trump would eventually make the payroll tax cut permanent and the financing of Social security, Medicare and unemployment insurance from General revenue.

The President for the first time, the idea mentioned, which is temporary containment of the wage tax on Monday during a press conference next to the White house, coronavirus-task-force. He also mentioned, moves to aid small businesses and help the workers who are sick.

“You are very dramatic,” Trump said of the proposed economic policy measures at an evening briefing in the White house. “This blindsided the world, and I think we handle it very well.”

CORONA VIRUS: WHAT YOU NEED TO KNOW

Minister of Finance, Steve Mnuchin Director of the National economic Council Larry Kudlow were to meet on Capitol Hill with Senate Republicans on Tuesday afternoon.

However, there are mixed reactions from Republicans on Capitol Hill on the proposal for a payroll tax holiday. A source familiar with the proposal, telling Fox News that the management of the wage tax is “the quickest way” to economic interests. The source said that crafting will take suggestions such as “unemployment insurance and dropping money from the helicopter, months engineer. But the payroll tax hit could immediately – especially if you are both the employer and the employees.

“(The payroll tax) helps all of the red places, but not all the blue places,” said the source.

But the attitude of some Republicans is back is that it is the deficit explodes.

Kudlow told reporters on Friday that the administration is looking at a “massive” federal relief plan. Rather, Federal aid package would be “timely, targeted, and micro.”

The lawmakers on Capitol Hill had barely begun, given the economic consequences of the spread of the virus and what could be used to stimulate the economy as people cancel vacations and business trips and stay away from shops. Senate Finance Committee Chairman Chuck Grassley, R-Iowa, told reporters that “everything is on the table.”

Video

But the members of the Senate, the Republican leadership, including Sen. John Cornyn, R-Texas, played down the need for a stimulus program of any kind, be it tax cuts or aid to workers. “It is premature to speak of that,” Cornyn told reporters. “I cuts in, as a rule, love tax, but I think it is a little premature.”

Democrats have indicated that they prefer other answers, such as passing legislation, that the employer, its workers ‘ sick pay — a long-standing political priority of Democrats — and additional help for people with lower incomes.

The stock market appeared to rebound a day after falling to the lowest point since the financial crisis of 2008 after the news of Trump’s meeting with Senate Republicans.

The S&P 500 rose as much as 3.7 percent in the morning, only to see these gains evaporate to lunch. The index then hopped up and down before turning to meet decisively higher following Trump.

CLICK HERE TO DOWNLOAD THE FOX NEWS APP

The movements reflected the mood of the market are just so busy with the virus like the rest of the world. As U.S. stocks continue their record a few weeks ago, traders have crossed to dismiss, the economic pain created by COVID-19 — think it is similar to the flu, and was able to stay mostly in China — in the wild, it is worrying that it can lead to a global recession.

For most people, the new coronavirus is only mild or moderate symptoms, such as fever and coughing caused. For some, especially older adults and people with existing health problems, it can lead to more serious illnesses, including pneumonia.

Video

The vast majority of people recover from the virus. To recover, according to the World Health Organization, people with mild disease again in about two weeks, while those with more severe disease, three to six weeks. In China, where the virus first exploded, more than 80,000 people were diagnosed, and more than 58,000 so far recovered.

But because the virus is new, can not say the experts, is sure to spread as far as it in the end. The investor has to be concerned about the worst-case scenario for corporate earnings and the economy, where factories and supply chains are closed around the world due to quarantines and the people to remain huddled at home, instead of working, or to spend.

Fox News’ Chad Pergram and The Associated Press contributed to this report.

Follow us

Don't be shy, get in touch. We love meeting interesting people and making new friends.

Most popular