Is President Trump About to Push for Another Tax Cut?

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Posted: Nov 25, 2019 2:40 PM
Is President Trump About to Push for Another Tax Cut?

Source: (AP Photo/John Bazemore)

After passing the Tax Cuts and Jobs Act of 2017, President Trump has repeatedly hinted he will push for an additional middle class tax cut before 2020. 

In recent months, White House Senior Economic Advisor and Director of the National Economic Council Larry Kudlow has said President Trump is interested in allowing workers to keep more of their hard earned paychecks and has been meeting with Republicans on Capitol Hill about how to get something done. 

"We will gather together the best ideas from the Hill, the administration and outside folks to provide a significant new round of middle class tax relief,” Kudlow told reporters in September.

Now, it looks like a new tax cut proposal could be coming soon. 

"It is time for Trump, in my opinion, to call for a second tax cut in his second term," Heritage Foundation Senior Fellow Steve Moore said during an interview with Fox and Friends Monday morning. "One of the central features of that would be a universal savings account. So, people with incomes say up to $150,000 would be able to save up to $10,000 per year...without having to pay tax on that money. What I think is very attractive to that is we know American middle class people aren't saving enough. Lets give them a little bit incentive to do that and put more money into their retirement accounts and be prepared for economic uncertainty."

Moore also argued the tax rate for the middle class should be lowered from 22 percent to 15 percent. 

"The whole idea here is how do we help middle class people keep more of their own money," Moore said. "That has a big chance of being part of the Trump 2.0 tax plan."