Trump wants 7.6% payroll tax cut to help staunch coronavirus economic pain: Kudlow

Aides carrying masks stand behind White House economic adviser Larry Kudlow as he speaks to reporters concerning the economic impression of the coronavirus illness (COVID-19) on the White House in Washington, U.S., May 15, 2020. REUTERS/Kevin Lamarque

WASHINGTON (Reuters) – White House economic adviser Larry Kudlow stated on Tuesday that President Donald Trump wants to see a 7.6% cut within the U.S. payroll tax, hoping it should help staunch economic ache attributable to the COVID-19 pandemic.

“I know the president wants to see those folks that go back to work to get a 7.6% cut in their payroll tax, so their after-tax take-home pay goes up,” Kudlow stated in an interview with Fox Business Network.

Trump is trying to the tax code to help the economic system regain floor misplaced when states shut down just about all economic exercise in hopes of containing the unfold of the novel coronavirus. Kudlow stated these steps may embrace a payroll tax vacation, a capital beneficial properties exclusion for a number of years, and a tax deduction for enterprise spending at eating places.

The president can also be contemplating incentives for firms to transfer again to the United States, which Kudlow termed “onshoring,” primarily full expensing for return strikes, a cut within the company tax price, and a focused tax credit score.

“We’re going to look at the numbers and assess what we think is necessary and not necessary,” Kudlow informed reporters on the White House after his interview.

Kudlow has introduced up these concepts over the previous couple of weeks as states start to reopen their economies and the Republican White House seems for methods past spending to help heal coronavirus-induced economic ache. Federal Reserve Governor Jerome Powell and the Democratic-led U.S. House of Representatives are pushing to increase federal spending and ship more money straight to people and households.

“I’m being vague because I can’t commit,” Kudlow informed reporters. “I’m just saying: Here’s what the president has talked about, here are some of the items he has talked about.”

Reporting by Lisa Lambert and Susan Heavey; Editing by Chizu Nomiyama