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Trump Proposes Tax Cuts as Coronavirus Hits the Economy

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2 years ago

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  • President Donald Trump announced Monday that his administration will be meeting with House and Senate Republicans to discuss passing payroll tax cuts, as well as relief for hourly wage earners. 
  • The announcement came the same day the U.S. Stock Market finished its worst day since the 2008 financial crisis, with the Dow Jones closing 2,000 points and 7.8% lower.
  • On Fox Business, Host Trish Regan then blasted Democrats for politicizing the coronavirus in relation to Trump, though many online later blasted her for politicizing the issue. 

Trump Payroll Tax Cut

President Donald Trump announced that his administration would be meeting with top Republicans on Tuesday to discuss passing legislation that would provide payroll tax cuts as well as relief for hourly wage earners. 

Trump also announced the White House will be working with industries like airlines, cruise ships, and hotels, all of which have been hit by the coronavirus as people cancel travel plans.

“We are going to take care of and have been taking care of the American public and the American economy,” Trump said from the White House Press Room Monday night.

Trump’s proposed tax cuts would be in addition to the recent passage of an $8.3 billion aid package focused on vaccine research and other medical efforts.

While Trump has announced his plan to have Republican lawmakers introduce legislation into Congress, much of the specifics of the plan are still unknown. 

At a press conference Tuesday afternoon, Trump called his meeting with top Republicans “great,” saying there was “tremendous unity;” however, no decision was reached.

In that meeting, Trump reportedly proposed a temporary payroll tax cut that could cost the government $40 billion a month, but some Republicans reportedly proposed different plans, while others worried that payroll tax cuts might not do enough to stimulate the economy.

What Are Payroll Tax Cuts?

Payroll tax cuts are what they sound like: cuts aimed at reducing the amount of money taken out of a paycheck, where that paycheck is weekly, biweekly, monthly, etc. Generally, they include both Social Security and Medicare.

Usually, when Congress implements a payroll tax cut, it tends to scale back Social Security. In fact, in 2011, Social Security taxes fell from their standard 6.2% to 4.2%, meaning people got to pocket that extra 2%. Medicare taxes, however, were not changed. 

The general idea of payroll tax cuts is the hope that people will spend that extra money; however, some have expressed concerns that such cuts might not translate into spending as people avoid shopping during the outbreak. 

Of course, more money for citizens also means less money for the federal government. In fact, according to the Committee for a Responsible Federal Budget, if Congress and the White House end up reducing the payroll tax by only 1%, that would cut federal revenue by between $55 and $75 billion.

Worst Stock Market Day Since 2008

Part of Trump’s announcement and the reason why his administration would want spending in the first place is that the stock market has been quickly falling since mid-February.

On Tuesday, the stock market saw its worst day of trading since the 2008 financial crisis, with the Dow Jones falling more than 2,000 and closing 7.8% lower. 

In fact, at one point, the stock market even temporarily stopped trading. Such a move has not happened since 1997.

Notably, that only lasted 15 minutes, and it was triggered by Saudi Arabia slashing at oil prices as part of a trade war with Russia. Still, much of that trade war stems from the coronavirus (particularly from Asia’s drop in oil consumption), and there is fear that the coronavirus could end up plunging the global economy into recession.

On Tuesday, the Dow jumped back up 945, though it drifted downward later in the day before stocks closed.

It is, however, hard to judge the stock market by only looking at its daily position. In mid-February, the Dow was at around 29,000 points. Monday, it ended just shy of 24,000 points.

Reaction from Lawmakers

Regarding a payroll tax cut, Monday, Senator Chuck Grassley said (R-IA) “everything is on the table.”

Another senator, John Cornyn (R-TX), called right now too early to employ tax. “I usually love tax cuts,” he said, “but I think it’s a little bit premature…”

On the other side of the aisle, Democrats are working on their own plan, which could reportedly be published in full later this week. 

Speaker of the House Nancy Pelosi and Senator Minority Leader Chuck Schumer introduced some of the details of that plan on Monday. It would include free coronavirus testing, paid leave for those affected by the epidemic, expanded food subsidies, and expanding the federal unemployment insurance system.

On the note of paid leave, there seems to be some common ground between Democrats and the Trump Administration. Vice President Mike Pence has indicated that the Trump Administration will work with Congress to make sure people don’t lose their paychecks.

“Coronavirus Impeachment Scam”

Following Trump’s announcement that he was hoping to introduce tax break policy into Congress, Fox Business host Trish Regan blasted Democrats, saying they have politicized the coronavirus. 

Next to her on the chyron read the words “Coronavirus Impeachment Scam.

“The chorus of hate being leveled at the president is nearing a crescendo as Democrats blame him and only him for a virus that originated halfway around the world,” Regan said. “This is yet another attempt to impeach the president, and sadly, it seems they care very little for any of the destruction they are leaving in their wake.” 

“Losses in the stock market, all this, unfortunately, just part of the political casualties for them,” she added. “You know, this is the time to be united, not to be pointing fingers, not to be encouraging hate, and yet, what do we see? We see the absolute opposite from the left tonight!” 

Trump later retweeted a clip of Regan’s video, but Regan also faced substantial criticism online, either by people saying she herself was politicizing the coronavirus. Many then pointed out the fact that her comments came as people were dying in the United States. 

Oddly enough, the same night on Tucker Carlson Tonight, Carlson painted a much different story for his viewers, even seemingly making an indirect jab at President Trump’s handling of the coronavirus in the U.S. 

“Meanwhile, if we’re being honest, the other side has not been especially helpful either,” Carlson said of Republicans. “People you trust, people you probably voted for, have spent weeks minimizing what is clearly a very serious problem. ‘It’s just partisan politics,’ they say, ‘Calm down.’ ‘In the end, this is just like the flu, and people die from that every year.’ ‘Coronavirus will pass. And when it does, we will feel foolish for worrying about it.’ That’s their position.” 

See what others are saying: (The Washington Post) (CNBC) (Newsweek)

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Katie Couric Says She Edited Ruth Bader Ginsburg Quote About Athletes Kneeling During National Anthem

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2 days ago

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October 14, 2021

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Couric said she omitted part of a 2016 interview in order to “protect” the justice.

Kate Couric Edited Quote From Justice Ginsburg

In her upcoming book, journalist Katie Couric admitted to editing a quote from Supreme Court Justice Ruth Bader Ginsberg in 2016 in order to “protect” Ginsberg from potential criticism. 

Couric interviewed the late justice for an article in Yahoo News. During their discussion, she asked Ginsburg about her thoughts on athletes like Colin Kaepernick kneeling for the national anthem to protest racial inequality.

“I think it’s really dumb of them,” Ginsburg is quoted saying in the piece. “Would I arrest them for doing it? No. I think it’s dumb and disrespectful. I would have the same answer if you asked me about flag burning. I think it’s a terrible thing to do, but I wouldn’t lock a person up for doing it. I would point out how ridiculous it seems to me to do such an act.”

According to The Daily Mail and The New York Post, which obtained advance copies of Couric’s book “Going There,” there was more to Ginsburg’s response. Couric wrote that she omitted a portion where Ginsburg said the form of protest showed a “contempt for a government that has made it possible for their parents and grandparents to live a decent life…Which they probably could not have lived in the places they came from.“

Couric Says She Lost Sleep Making Choice

“As they became older they realize that this was youthful folly,” Ginsberg reportedly continued. “And that’s why education is important.“

According to The Daily Mail, Couric wrote that the Supreme Court’s head of public affairs sent an email asking to remove comments about kneeling because Ginsburg had misspoken. Couric reportedly added that she felt a need to “protect” the justice, thinking she may not have understood the question. Couric reached out to her friend, New York Times reporter David Brooks, regarding the matter and he allegedly likewise believed she may have been confused by the subject. 

Couric also wrote that she was a “big RBG fan” and felt her comments were “unworthy of a crusader for equality.” Because she knew the remarks could land Ginsburg in hot water, she said she “lost a lot of sleep” and felt “conflicted” about whether or not to edit them out. 

Couric was trending on Twitter Wednesday and Thursday as people questioned the ethics behind her choice to ultimately cut part of the quote. Some thought the move showed a lack of journalistic integrity while others thought revealing the story now harmed Ginsburg’s legacy.

See what others are saying: (New York Post) (The Daily Mail) (Insider)

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Biden Administration Orders ICE To Halt Workplace Raids

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3 days ago

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October 13, 2021

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The Department of Homeland Security will now focus on targeting employers who exploit undocumented workers, instead of carrying out raids that dissuade those workers from reporting labor violations.

DHS Reverses Worksite Raid Policy

The Biden administration announced Tuesday that it was ordering Immigration and Customs Enforcement (ICE) to stop workplace raids.

The move marks a reversal from Trump administration policies that have been strongly criticized by immigration activists who argue the efforts created fear in immigrant communities and dissuaded them from reporting labor violations or exploitative employment practices.

In addition to stopping the raids, Department of Homeland Security (DHS) Secretary Alejandro Mayorkas said in a memo that the administration will refocus enforcement efforts to instead target “employers who exploit unauthorized workers, conduct illegal activities or impose unsafe working conditions.” 

Mayorkas added that the immigration agencies housed in DHS will have the next 60 days to identify harmful existing policies and come up with new ones that provide better deportation protections for workers who report their employers.

In the Tuesday memo, the secretary argued that shift of focus will “reduce the demand for illegal employment by delivering more severe consequences to exploitative employers” and “increase the willingness of workers to report violations of law by exploitative employers and cooperate in employment and labor standards investigation.”

Labor Market Implications

The new policy comes at a time when the U.S. is experiencing a critical labor shortage, including in many sectors that rely on immigrant labor.

Some companies that use undocumented workers pay them wages that are far below the market rate, which is not only exploitative but also undercuts competitors.

According to Mayorkas, the pivot to employer-based enforcement will help protect American businesses.

“By exploiting undocumented workers and paying them substandard wages, the unscrupulous employers create an unfair labor market,” he said in the memo. “They also unfairly drive down their costs and disadvantage their business competitors who abide by the law.”

It is currently unclear how effective the new efforts will be, but historical precedent does not paint an optimistic picture.

The Biden administration’s efforts closely mirror a similar move by the Obama administration, which attempted to reverse workplace raids authorized under President George W. Bush by targetting those who employ undocumented workers rather than the workers themselves.

That effort, however, still led to thousands of undocumented workers being fired.

See what others are saying: (The Washington Post) (The New York Times) (ABC News)

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Mom Charged for Hosting Secret Teen Parties, Pressuring Kids To Drink and Engage in Sex Acts

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3 days ago

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October 13, 2021

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Investigators said some of the sex acts between teens were non-consensual and at times took place while the mother stood by laughing.

Mother Hit With Dozens of Charges

A California mother is facing 39 criminal charges after hosting a series of illegal parties for her teenage son and his mostly 14- and 15-year-old friends that regularly led to dangerous accidents and sexual assaults.

The mother, 47-year-old Shannon O’Connor, also known as Shannon Bruga, is currently awaiting extradition to Santa Clara County. According to The Mercury News, she was arrested Saturday in Ada County, Idaho, where she has a home in addition to her property in Los Gatos that is currently on the market.

Her criminal charges include 12 felony counts and 10 misdemeanor counts of child endangerment, one count of misdemeanor sexual battery, three counts of misdemeanor child molestation, and 13 misdemeanor counts of providing alcohol to minors.

“It took a lot of brave children to come forward and to untangle this deeply disturbing case,” Santa Clara County District Attorney Jeff Rosen said in a press release regarding the case. “As a parent, I’m shocked. As the DA, I’m determined to hold those adults who endanger children fully accountable to the law and our community.”

What Happened During the Parties?

Investigators claim O’Connor organized the functions, attended by as many as 20 teens, via text message and Snapchat. She would then allegedly supply the teens with alcohol and push them to binge drink, often to the point of illness or unconsciousness.

The harm that resulted from their intoxication included one teen breaking a finger and another almost drowning in a hot tub, among other serious situations.

In another instance, O’Connor let an unlicensed drunk teen drive her car. Her son and another one of his friends then hung off the back while it was moving, which caused the friend to fall, hit his head, and become unconscious for 30 seconds. He was later diagnosed with a concussion after spending the night vomiting.

O’Connor is additionally accused of manipulating and encouraging drunk teens to participate in sex acts with one another, which were sometimes non-consensual or carried out while she watched. In some cases, she allegedly laughed while the sexual acts happened or when assault victims asked her why she didn’t step in to help.

Investigators added that O’Connor required teens who attended her parties to keep them a secret. She’s even accused of helping them sneak out of their homes so she could drive them to her events. Authorities said she was found to have bullied at least one teen who she suspected of breaking the secret.

“Everyone should feel relieved this woman’s not on the street,” the parents of one assault victim told The Mercury News. “She was grooming these kids, setting them up for sexual acts, and she’s a mother and doing this to her own child. … I’ve been racking my brain trying to think what was in it for her.“

See what others are saying: (The Mercury News) (ABC 7) (CBS San Francisco)

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