White House denies exploring payroll tax cut to offset worsening economy

The White House is denying that it's considering a temporary payroll tax cut to help boost the economy after The Washington Post reported that several senior administration officials have been discussing the idea.

A White House official said in a statement that "cutting payroll taxes is not something under consideration at this time."

Senate Finance Committee Chairman Chuck Grassley (R-Iowa) has not discussed a possible payroll tax cut with the administration, according to a spokesman for the senator.

"At this point, recession seems more of a political wish by Democrats than an economic reality," Grassley spokesman Michael Zona said.

The Post, citing three people familiar with the discussions, reported Monday that top White House officials are weighing whether to push Congress to pass a temporary payroll tax cut in an effort to stave off a slowing economy.

Talks about a potential payroll tax cut are in their early stages and no decision has been made about whether to press for the cut, according to the Post.

The New York Times later also reported that the White House was considering a potential payroll tax cut and was also mulling whether to reverse some of President Trump’s tariffs.

The report, which cited people familiar with the discussions, said economists within the administration have drafted a white paper for a potential payroll tax cut.

The Times also reported that Trump had not been been briefed on the idea, and said it remained unclear whether he would support such a plan.