Same Show, 10 Days Apart: Kudlow Flip Flops On Payroll Tax Cut
March 16, 2020
Ten days ago, Trump’s top economic advisor opposed the use of a payroll tax cut to help mitigate the coronavirus crisis. Now, he’s a big fan of it.
Today, Larry Kudlow said the payroll tax holiday is “a very powerful weapon” and will “help mitigate the economic risks.”
KUDLOW: “The president is still very keen, so am I, on the payroll tax holiday out to the end of the year. That is the subject of discussion. We will be up speaking with the Senate leadership about all these matters. My point here is the payroll tax holiday is a very powerful weapon. It allows businesses and workers to keep more of what they earn. It’s a middle class, small business aim, it’s really targeted more there than anything else, and it will provide a lot of cash flow and liquidity. These measures will, I think, help mitigate the economic risks and challenges in front of us.”
But 10 days ago, on the exact same show, Kudlow said an untargeted approach like a payroll tax cut “never works.”
KUDLOW: “What we are looking at, Stuart, is a timely and targeted micro approach. We are not looking to give everybody $1,000, which would not have any long-term growth effects on the economy. We’ve done this before under both parties, and it does not work.”
KUDLOW: “We’re not looking at big, expensive, macro cash rebates, helicopter money from the sky that never works. We want to have this targeted in a timely fashion for those areas that have been hit the most.”