, Columnist
Trump’s Tax Cuts Wouldn’t Necessarily Help
If a recession is coming, then a small reduction in workers’ payroll taxes won’t matter much.
Not a panacea.
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As the U.S. economy shows increasing signs of recession, President Donald Trump has begun to toy with the idea of further tax cuts. But for the most part, cutting taxes won’t fix the problem at hand.
So far the idea of a payroll tax cut has garnered the most attention. America’s Social Security system imposes a 6.2% tax on both the employer and the worker. If that tax were lowered, the incentive to hire workers might be greater.