Donald Trump Is Eyeing Middle-Class Tax Cut Should He Take Down Joe Biden and Win Back the White House: Report

By Jace Dela Cruz

Apr 18, 2024 04:43 AM EDT

Former President Donald Trump is reportedly considering implementing a new tax cut targeting the American middle class if he returns to the White House.

According to Reuters, this initiative could appeal to voters if pursued but could also worsen the country's growing budget deficit.

Former President Trump Visits A Local Business In Manhattan After Day 2 Of Jury Selection In His Hush Money Trial
NEW YORK, NEW YORK - APRIL 16: Former president Donald Trump speaks to the media as he visits a bodega store in upper Manhattan where a worker was assaulted by a man in 2022 and ended up killing him in an ensuing fight on April 16, 2024 in New York City.
(Photo : Spencer Platt/Getty Images)

Donald Trump Eyeing Middle-Class Tax Cut 

Two people familiar with the matter told Reuters that Donald Trump has hinted to advisers that he wants a new middle-class tax cut should he win a second term as president.

One of the sources said the advisers also presented Trump with the idea of cutting the federal payroll tax, which could reduce the money flowing into Social Security and Medicare trust funds.

This move could also open the former president to criticism from Democrats that he is destroying the financial safety nets millions of elderly Americans rely on. The source added that although Trump has signaled that he is open to the idea, he has yet to make any commitments.

During the peak of the COVID-19 pandemic in 2020, Trump's economic team suggested slashing the payroll tax to kick-start economic growth, but his administration eventually settled to temporarily allow deferrals in payroll tax payments.

Even though the economy is much healthier now than four years ago, the recent proposals indicate that his economic advisers are still pushing for a payroll tax cut.

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Economic Advisers of Donald Trump Seek to Increase Deduction on Year-End Tax Returns

One of the sources noted that other ideas discussed by Donald Trump's economic team include increasing the standard deduction on year-end tax returns and reducing the marginal income tax rate for middle-income Americans.

However, whether these proposals have been directly presented to Trump remains unclear. The two sources described the discussions surrounding the tax cut as informal.

They said the discussions primarily aimed at the middle class rather than households earning below a specific income bracket. The feasibility of any proposed tax measures ultimately depends on the composition of the next Congress, which normally approves significant tax overhauls.

The sources noted that among the people involved in conversations around tax policy were Trump's longtime adviser and conservative economist Stephen Moore, and former director of the National Economic Council and Fox News host Larry Kudlow. Both men speak with the former president regularly.

READ MORE: Joe Biden Uses Donald Trump's Signature Phrase 'Make America Great Again' to Promote His Tax Proposals

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