AP Photo / Evan Vucci
- The Trump administration announced Tuesday night that it will take measures to protect the US economy from the outbreak of the corona virus.
- The government said it will push to lower wage taxes and support those who cannot work due to the outbreak.
- However, no official proposal had been reached with the congress.
- You can find more stories on the Business Insider homepage.
The Trump administration announced Tuesday night that it would take measures to isolate the U.S. economy from the onset of the corona virus, despite the fact that no official proposal had been reached with Congress.
In brief comments at a press conference on respiratory disease COVID-19, White House economic adviser Larry Kudlow said the government would push to lower wage taxes and support those who were unable to work due to the outbreak. The government could also offer help to small businesses and industries disproportionately affected by the economic disruption.
While Trump had promised to submit a "very dramatic" economic proposal by Tuesday afternoon, key details at the press conference remained unclear. Regarding wage tax cuts, Kudlow said the president "would prefer the last to the end of the year."
Still, the announcement was a sharp reversal for a White House trying to downplay the human and economic threats to the outbreak. The number of confirmed cases has risen sharply in the United States in the past few days, which has led to new restrictions on activities in the largest economy and shaken the financial markets.
While Trump could potentially use the Federal Emergency Management Agency to unilaterally implement some measures, he would need Congress approval for a broader stimulus package. The White House has found common ground with the Democrats to support the temporary expansion of sick leave. Experts say such a policy could curb the spread of COVID-19.
After the President and some of his advisors discussed possible economic measures with the Senate Republicans at a closed lunch, some remained skeptical of wage tax cuts.
After meeting with House Speaker Nancy Pelosi shortly after this lunch, Treasury Secretary Steven Mnuchin suggested that the two sides were still in the preliminary stages of the discussions.
"I would not say that it is negotiation," said Mnuchin. "We are having discussions about various guidelines."
Even as Washington started this week to keep the longest expansion in history alive, Trump has resisted growing recession fears and painted a rosy picture of the US economy.
"A lot of good things will happen," Trump told reporters on Tuesday. "The consumer is ready, and the consumer in our country is so powerful with what we have done with tax cuts and regulatory cuts and all of these things. The consumer has never been in a better position than now."
Contact this reporter at email@example.com.
(tagsToTranslate) Trump (t) White House Coronavirus (t) Coronavirus (t) Economy (t) Politics (t) Stimulus (t) Wuhan Coronavirus