Donald Trump’s big new plan is a complete disaster
With the stock market having plunged by more than five thousand points in the past few weeks, and the U.S. coronavirus outbreak now severe enough that several House and Senate Republicans have now been quarantined, the U.S. economy is in trouble. Don’t worry, though, because Donald Trump has a plan.
Trump announced during his press conference today that he’s about to roll out a series of payroll tax cuts that are aimed at stopping the economic bleeding. The thing is, this never works under these kinds of circumstances. If people start panicking about economic collapse, they’re not going to be willing to spend their money even if they have a little bit more of it in their pockets. They’re going to hang onto their money out of fear.
Trump could be using this money to fund coronavirus test kits, or temporary hospitals, or paid sick leave for those who have been potentially exposed. But no, he’s pushing payroll tax cuts instead. I think I know why. The Democratic House will be in a no-win situation. It can either pass Trump’s tax cuts and let him take credit for an idea that won’t help anyone. Or it can shoot down Trump’s tax cuts, allowing him to campaign on the premise that the House refused to help anyone during the crisis.
The best case scenario for the Democrats is that Donald Trump’s payroll tax cut idea is so poorly received, it withers on the vine before the House even has to get around to holding a vote on it.
