Trump Proposes Tax Cuts as Coronavirus Hits the Economy
- 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.
Wow. The chorus of nonsense being leveled by Trump and lackeys like you is nearing a crescendo as I listen to you try and politicize something that you call for no one to politicize— J 🌹 (@_Treppy_) March 10, 2020
You’re not even trying to hide that you’re doing it. Such a hypocrite.
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)
White Supremacist Propaganda Reached Record High in 2022, ADL Finds
“We cannot sit idly by as these extremists pollute our communities with their hateful trash,” ADL CEO Jonathan Greenblatt said.
White supremacist propaganda in the U.S. reached record levels in 2022, according to a report published Wednesday by the Anti-Defamation League’s Center of Extremism.
The ADL found over 6,700 cases of white supremacist propaganda in 2022, which marks a 38% jump from the nearly 4,900 cases the group found in 2021. It also represents the highest number of incidents ever recorded by the ADL.
The propaganda tallied by the anti-hate organization includes the distribution of racist, antisemitic, and homophobic flyers, banners, graffiti, and more. This propaganda has spread substantially since 2018, when the ADL found just over 1,200 incidents.
“There’s no question that white supremacists and antisemites are trying to terrorize and harass Americans with their propaganda,” ADL CEO Jonathan Greenblatt said in a statement. “We cannot sit idly by as these extremists pollute our communities with their hateful trash.”
The report found that there were at least 50 white supremacist groups behind the spread of propaganda in 2022, but 93% of it came from just three groups. One of those groups was also responsible for 43% of the white supremacist events that took place last year.
White supremacist events saw a startling uptick of their own, with the ADL documenting at least 167, a 55% jump from 2021.
Propaganda was found in every U.S. state except for Hawaii, and events were documented in 33 states, most heavily in Massachusetts, California, Ohio, and Florida.
“The sheer volume of white supremacist propaganda distributions we are documenting around the country is alarming and dangerous,” Oren Segal, Vice President of the ADL’s Center on Extremism said in a statement. “Hardly a day goes by without communities being targeted by these coordinated, hateful actions, which are designed to sow anxiety and create fear.”
“We need a whole-of-society approach to combat this activity, including elected officials, community leaders, and people of good faith coming together and condemning this activity forcefully,” Segal continued.
See what others are saying: (Axios) (The Hill) (The New York Times)
Adidas Financial Woes Continue, Company on Track for First Annual Loss in Decades
Adidas has labeled 2023 a “transition year” for the company.
Adidas’ split with musician Kanye West has left the company with financial problems due to surplus Yeezy products, putting the sportswear giant in the position to potentially suffer its first annual loss in over 30 years.
Adidas dropped West last year after he made a series of antisemitic remarks on social media and other broadcasts. His Yeezy line was a staple for Adidas, and the surplus product is due, in part, to the brand’s own decision to continue production during the split.
According to CEO Bjorn Gulden, Adidas continued production of only the items already in the pipeline to prevent thousands of people from losing their jobs. However, that has led to the unfortunate overabundance of Yeezy sneakers and clothes.
On Wednesday, Gulden said that selling the shoes and donating the proceeds makes more sense than giving them away due to the Yeezy resale market — which has reportedly shot up 30% since October.
“If we sell it, I promise that the people who have been hurt by this will also get something good out of this,” Gulden said in a statement to the press.
However, Gulden also said that West is entitled to a portion of the proceeds of the sale of Yeezys per his royalty agreement.
Adidas announced in February that, following its divergence from West, it is facing potential sales losses totaling around $1.2 billion and profit losses of around $500 million.
If it decides to not sell any more Yeezy products, Adidas is facing a projected annual loss of over $700 million.
Outside of West, Adidas has taken several heavy profit blows recently. Its operating profit reportedly fell by 66% last year, a total of more than $700 million. It also pulled out of Russia after the country’s invasion of Ukraine last year, which cost Adidas nearly $60 million dollars. Additionally, China’s “Zero Covid” lockdowns last year caused in part a 36% drop in revenue for Adidas compared to years prior.
As a step towards a solution, Gulden announced that the company is slashing its dividends from 3.30 euros to 0.70 euro cents per share pending shareholder approval.
Adidas has labeled 2023 a “transition year” for the company.
“Adidas has all the ingredients to be successful. But we need to put our focus back on our core: product, consumers, retail partners, and athletes,” Gulden said. “I am convinced that over time we will make Adidas shine again. But we need some time.”
See what others are saying: (The Washington Post) (The New York Times) (CNN)
Immigration Could Be A Solution to Nursing Home Labor Shortages
98% of nursing homes in the United States are experiencing difficulty hiring staff.
The Labor Crisis
A recent National Bureau of Economic Research paper has offered up a solution to the nursing home labor shortage: immigration.
According to a 2022 American Health Care Association survey, six in ten nursing homes are limiting new patients due to staffing issues. The survey also says that 87% of nursing homes have staffing shortages and 98% are experiencing difficulty hiring.
The National Bureau of Economic Research (NBER) outlined in their paper that increased immigration could help solve the labor shortage in nursing homes. Immigrants make up 19% of nursing home workers.
With every 10% increase in female immigration, nursing assistant hours go up by 0.7% and registered nursing hours go up by 1.1% And with that same immigration increase, short-term hospitalizations of nursing home residents go down by 0.6%.
Additionally, the State Department issued 145% more EB-3 documents, which are employment-based visas, for healthcare workers in the 2022 fiscal year than in 2019, suggesting that more people are coming to the U.S. to work in health care.
However, according to Skilled Nursing News, in August of 2022, the approval process from beginning to end for an RN can take between seven to nine months.
Displeasure about immigration has exploded since Pres. Joe Biden took office in 2021. According to a Gallup study published in February, around 40% of American adults want to see immigration decrease. That is a steep jump from 19% in 2021, and it is the highest the figure has been since 2016.
However, more than half of Democrats still are satisfied with immigration and want to see it increased. But with a divided Congress, the likelihood of any substantial immigration change happening is pretty slim.