“Two of Trump’s ideas for stimulating the economy are 1) cutting the corporate tax rate a little more (after cutting it a lot didn’t do much), and 2) indexing capital gains to inflation. It’s tax cuts for the rich all the way down.”
While continuing to publicly downplay warning signs that the U.S. economy is barreling toward a recession, the Trump White House is reportedly weighing a number of supposed stimulus measures, including more tax cuts for the rich and large corporations.
Politico reported late Tuesday that Trump officials are considering “a cut of an additional percentage point or two to the corporate tax rate,” which the GOP tax law slashed from 35 percent to 21 percent in 2018.
“The American people are waking up to the damage he has done to our economy by waging senseless trade wars and handing out trillions in tax cuts to the wealthy and corporations.”
—Robert Reich, former Labor Secretary
“That’s on top of a potential payroll tax cut,” the news outlet noted, “which the Obama administration had used to shore up the economy, and a move to index the capital gains rate to inflation, which potentially could be done through an executive order.”
A payroll tax cut, which Trump on Tuesday confirmed he is considering, would temporarily boost workers’ paychecks.
But, as the Washington Post reported Monday, depending on how it is designed, a payroll tax cut could “pull billions of dollars away from Social Security.”
The other option Trump is considering, indexing capital gains to inflation via executive order, would primarily benefit wealthy investors. According to Chye-Ching Huang of the Center on Budget and Policy Priorities, 86 percent of the benefits would go to the top one percent.
The Trump administration has been mulling indexing capital gains to inflation through executive action since last year, despite warnings the move may be illegal. As Common Dreams reported last month, a group of more than 20 Republican senators, led by Sen. Ted Cruz (R-Texas), is urging the president to push ahead with the executive order.
“We have been talking about indexing for a long time,” Trump told reporters Tuesday. “I can do it directly.
Trump tells WH pool he could index capital gains to inflation — effectively a huge tax cut, primarily befalling the wealthy — through executive action, without going through Congress. Here’s what Trump’s own AG Bill Barr said about that in 1992, the last time he was AG pic.twitter.com/MdFGrzmqCo
— Catherine Rampell (@crampell) August 20, 2019
Journalist Matt O’Brien derided the White House’s reported ideas to ward off a recession as handouts to the rich that would do little to stimulate the economy.
“Hilariously, two of Trump’s ideas for stimulating the economy are 1) cutting the corporate tax rate a little more (after cutting it a lot didn’t do much), and 2) indexing capital gains to inflation,” O’Brien tweeted on Tuesday. “It’s tax cuts for the rich all the way down.”
Trump’s reported plans to put more money in the pockets of the wealthiest Americans and large corporations come just a week after the Treasury bond yield curve inverted for the first time since the Wall Street crash of 2008. The inverted yield curve has preceeded every major economic downturn over the past 50 years.
Economists and other observers were quick to point to Trump’s reckless trade war with China, the world’s second-largest economy behind the U.S., as a key reason for recession fears. As Common Dreams reported last week, the Twitter hashtag #TrumpRecession went viral shortly following the inverted yield curve.
Former Labor Secretary Robert Reich tweeted Tuesday that “we already know about Trump’s racism, xenophobia, and fear-mongering.”
“Now,” said Reich, “the American people are waking up to the damage he has done to our economy by waging senseless trade wars and handing out trillions in tax cuts to the wealthy and corporations.”
Ex-prosecutor demands congressional investigation after latest report on the FBI and Brett Kavanaugh
Supreme Court Justice Brett Kavanaugh had another allegation of sexual misconduct revealed on Saturday in a bombshell report in The New York Times.
"A classmate, Max Stier, saw Mr. Kavanaugh with his pants down at a different drunken dorm party, where friends pushed his penis into the hand of a female student. Mr. Stier, who runs a nonprofit organization in Washington, notified senators and the F.B.I. about this account, but the F.B.I. did not investigate and Mr. Stier has declined to discuss it publicly," the newspaper reported.
Boris Johnson promises Britain will be like the Incredible Hulk during Brexit negotiations
Prime Minister Boris Johnson said Saturday he was making a "huge amount of progress" towards a Brexit deal with the EU, in an interview in which he compared Britain to the Incredible Hulk.
"It's going to take a lot of work between now and October 17" when EU leaders gather for their final summit before Britain's scheduled exit from the bloc, he told the Mail on Sunday newspaper.
"But I'm going to go to that summit and I'm going to get a deal, I'm very confident. And if we don't get a deal then we'll come out on October 31."
His comments came ahead of talks with European Commission chief Jean-Claude Juncker and the EU's chief Brexit negotiator, Michel Barnier, in Luxembourg on Monday.
NYT blasted for ‘spectacularly offensive sentiment’ after tweet illustrating ‘rape culture’
The results of a 10-month investigation into Supreme Court Justice Brett Kavanaugh by New York Times reporters Robin Pogrebin and Kate Kelly was published on Saturday.
But attention was taken away from the powerful reporting after the Twitter account of The Times opinion page posted a shocking message.