This archive report was first published on 20 August 2019.
As the US economy faces potential slowdown, the Trump administration is considering various measures to inject more money into the system. One proposal involves a second round of tax cuts, which White House officials are discussing.
According to Larry Kudlow, the president's economic adviser, the administration is looking at 'Tax Cuts 2.0.' Kudlow also mentioned a proposal by Senator Rick Scott of Florida to turn tariffs back to taxpayers in the form of tax cuts.
Another idea being discussed is reducing capital gains taxes, which would largely benefit wealthy investors. However, this move would likely face challenges in court and is opposed by Treasury Secretary Steven Mnuchin.
The administration's plans come as the economy is already receiving an unusual amount of fiscal and monetary stimulus, with low interest rates and a recent Fed rate cut. The federal budget deficit has also increased significantly, up 27 percent in July for the 2019 fiscal year compared to the same point in 2018.
