It seems the Trump administration is looking to drum up some support by offering up a news tidbit about incoming tax cuts for the middle class after economic adviser Larry Kudlow said this week on Fox Business that the terms are being worked on behind the scenes.
“This is kind of a new rendition of an older story. We’re calling it ‘Tax Cuts 2.0,'” Kudow said. “The president has referred to it and we’ve spoken about it. This is something we’re working on, right now it’s informal and I don’t really have anything to report (yet).”
“Is it kind of a campaign issue: Vote for me and you’ll get tax cuts in the second term?” host Stuart Varney asked.
Kudlow basically admitted yes and no.
“I wouldn’t put it exactly that way,” Kudlow replied to laughter from Varney. “But what I was saying is this: The president would love to see another round of lower taxes to help middle-income workers and wage earners, give them as much disposable income as possible. We are talking — again, informally at the moment — we’re talking to the best folks; my friend Kevin Brady on Capitol Hill, we’ll be talking to House members, we’ll be talking to Senate members. We’re obviously working inside the administration with our colleagues here.
“There’s nothing formal in the process and I don’t have any details, but we would like to see some middle class tax cuts. It will be announced during the campaign and let’s just see where it takes us. That’s all.”
I would take this pseudo-announcement with a grain of salt as this isn’t the first time the Trump administration has floated the idea of tax cuts for the middle class. Trump said he was preparing “inspirational” tax cuts for the middle class back in September.
“It will be a very substantial tax cut,” Trump said, adding the tax cut would be “very, very inspirational” without providing further details.
And again, before the 2018 midterms, Trump suddenly announced that he was preparing a 10% tax cut for the middle class — after the midterm elections, which never came to about. The announcement took Republican lawmakers, who said it was the first they had heard of it, by surprise.
Ultimately, Trump is likely just trying to curry favor from voters with this carrot of sorts. But as long as Democrats control the House of Representatives, there is little-to-no chance he’ll get any sort of tax cuts passed.
The idea of tax cuts for the middle class also goes to show just how flat the Tax Cuts and Jobs Act ultimately fell among the working class, with Democrats at least fairly successfully painting them as strictly for the rich and corporations. Whether that is true or not, it seems to have worked fairly well or the Trump administration wouldn’t be floating the idea of more tax cuts specifically for the middle class.
Money and Markets contributor Tom Luongo clearly doesn’t think the tax cuts were a failure.
Saying it a lot doesn’t make it true, Schmuck Chumer https://t.co/gtCrP04ii2
— Tom Luongo (@TFL1728) November 1, 2019