See the latest Australian dollar analysis here:
White House officials are scrambling to produce an election year fiscal stimulus plan that is likely to include tax cuts to juice the economy and stock market ahead of the 2020 presidential contest, FOX Business has learned.
The stimulus would be a way to have an alternate message to the proposals from nearly every Democratic candidate looking to unseat Trump in the November election. Top-tier democrats are proposing massive increases in the size of government, with programs like Medicare for all, coupled with tax increases that will likely fall on the middle class.
These people say Larry Kudlow, Trump’s director of the National Economic Council, is leading the effort. He and his team are weighing the proposals and they are consulting with members of Congress on the appropriate package of tax cuts. The measures being discussed with Congressional leaders include options like increasing the earned income tax credits, which is a subsidy targeted at lower-income workers with families, and cutting corporate and individual tax rates, these people say. There has also been talk of proposing payroll tax cuts, Congressional sources tell FOX Business.
These sources add that the tax-cut proposal could be part of the White House budget, to be submitted in February even if getting a tax-cut plan through a divided Congress may be difficult during an election year.
With stocks, housing and exports all strong, but wages and inflation fading, why not pull the fical lever again? Espeically if it is targeted at lower income households. Trump will need something to counter Bernie Sanders’ student debt write-offs.
DXY to remain strong.