Of Course Trump’s Going To Reduce Payroll Taxes

Never mind that he’ll never admit the economy might be weakening: he’s not gonna sell it like that. Instead, it’ll be a little “gift” from benevolent President Trump. Like a free turkey at Thanksgiving.

And there’s another even bigger reason we’re almost certain he’s going to do it: there’s a probably much more significant tax cut he really wants to do. Because there’s one thing Trump feels is an even bigger image booster than strong economic growth numbers, and that’s a soaring stock market. So reducing capital gains, which is what you pay on profits in stocks or other investments, would more directly support the stock market. Problem is, it would likely be perceived as another Trump hand-out to really rich people. Because that’s what it would be. And despite Trump’s best efforts, his massive previous tax cut has come to be seen as mostly done for the benefit of big corporations, which it is. So Trump needs the payroll tax cut as cover. A hand-out to the middle class to distract focus from another bonanza to the rich.

Trump says he believes he can mess with capital gains without Congressional approval. That’s because he wouldn’t actually be cutting capital gains taxes, which would stay at the same rate…