If you’re looking at the world through Trump’s eyes, you undoubtedly think that the emergency is over, and that it is time to start the rebound that will assure your re-election. According to Politico, he is meeting with his advisers at Camp David this weekend to formulate the plan that will accomplish just that. What will it look like?
The GOP tool kit consists of two items: tax cuts and deregulation. That approach isn’t designed to deal with the impacts of a pandemic; cutting taxes doesn’t help when businesses can’t generate income, and deregulation only endangers the lives of workers and consumers. The real problem is consumer and worker confidence; tax cuts aren’t going to make people risk their lives to go to restaurants and bars again. The situation won’t really improve until the public perceives that the health issue is under control.
Nevertheless, because the GOP is what it is, the answer will be tax cuts. Cutting the payroll tax at least makes a tiny bit of sense, even though it is hardly the most efficient way to encourage employers to maintain the workforce. The real question is whether Trump will go further and suggest income, capital gains, and corporate tax cuts, as well. That would absolutely make no sense whatsoever under the current circumstances, so expect him to try it.
And when the House shows no interest, he will have someone else to blame for his failures.