Urgent Trump Considers Reducing Payroll Tax to 0%

As Part of Measures to Address COVID-19 Economic Slump
Permanent Implementation After Review Possible
Support for Shale Industry Also Under Consideration

President Trump is answering questions from the press after meeting with Republican lawmakers at the U.S. Congress on the 10th.
[Image source=AP Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] Reports have emerged that U.S. President Donald Trump is aiming to reduce the payroll tax to 0%. It is also estimated that the payroll tax cut could amount to $300 billion.

On the 11th (local time), CNBC reported, citing sources, that President Donald Trump met with Republican lawmakers and expressed his intention to lower the payroll tax to 0% for the remainder of the year. The sources also said that during the meeting, there was discussion about permanently reducing the payroll tax.

Although President Trump mentioned payroll tax cuts as a way to overcome economic problems caused by COVID-19 during a White House coronavirus task force (TF) press briefing the previous day, the idea of reducing it to 0% was unexpected. Senator Marco Rubio mentioned that the scope of the payroll tax cut could be around $300 billion.

After the meeting with Republican lawmakers, President Trump told reporters, "We had a meeting about stimulus measures, and you will hear about it soon. It was a great meeting, and the Republicans are very united."

CNBC also reported that the White House is considering support for the shale industry, which is facing a crisis due to the sharp drop in oil prices caused by conflicts between Russia and Saudi Arabia.

As expectations for President Trump's economic measures, initially anticipated that day, diminished, the New York Stock Exchange, which had surrendered early gains and reversed to a decline during the session, increased its gains after news of the meeting between President Trump and Republican lawmakers, closing with a surge of over 4%.