The Trump administration is seeking to unveil its follow-up tax cut plan in September that would likely make a number of tax cuts permanent and possibly a 10% tax cut for middle class Americans, White House economic adviser Larry Kudlow said on Friday.
“We’d love to have a 10% middle class tax cut, and we would love to strengthen and make permanent some of the other tax cuts,” Kudlow said in an interview with Fox Business Network, according to excerpts released by the network.
“It’ll probably come out some time in September,” he added. Trump is seeking re-election in the Nov. 3 presidential election.
Tax cuts 2.0 could include this middle-class windfall
Trump targets even faster economic growth in a second term
The Trump administration has begun reviewing ways to carry out its goal of cutting taxes for the middle class.
While lowering the payroll tax isn’t high on the White House’s list, adjusting the earned income tax credit for low to moderate earners is something that’s being examined, Larry Kudlow, director of the National Economic Council, told FOX Business’ Stuart Varney.
“We want to aim this at even faster economic growth going out in the president’s second term,” Kudlow said.
The U.S. economy grew at a 2.1 percent pace in the third quarter of 2019, the most recent period for which data was available. Its growth reached a Trump-era peak of 4.2 percent in the second quarter of 2018, following the passage of the Tax Cuts and Jobs Act, which lowered the top corporate rate from 35 percent to 21 percent and reduced personal income taxes for many Americans.
Kudlow said the administration wants to keep the child tax credit, which was doubled to $2,000 in 2018, and that it’s considering making “some things permanent” on both the individual side and the corporate side that would have expired under the 2017 tax overhaul. Another option is allowing for immediate expensing, which Kudlow called a “very powerful tonic” for business investment.
A tax-cut proposal may be part of the White House budget that is submitted in February, three people familiar with the matter told FOX Business. Passing major legislation such as tax-code changes is typically difficult in a presidential election year, however, especially one roiled by impeachment.
“Reelect President Trump and you’ll get lower tax rates and lower tax burdens,” Kudlow said.