White House Considers Tax Cuts to Battle Coronavirus Recession

Amid the recent stock market downturn, the White House is weighing a tax cut proposal to fight back a potential recession sparked by coronavirus fears.

In addition to pushing along its long-sought middle-income tax cut earlier than late in the year, the Trump administration might be leaning on the Federal Reserve to cut interest rates to  reignite economic growth lost by declining travel, tourism, and potential trade, sources told The Washington Post.

In an impromptu coronavirus news conference Saturday, President Donald Trump downplayed the likelihood of near-term tax-cut legislation amid the resistant House led by Democratic majority.

"I think the big thing we're looking for is the Fed to do its job. If the fed does its job that's really what we're looking for," Trump told reporters.

"Toward the end of the year, we're going to be announcing a middle-income tax cut. In order to get that through, I don't think the Democrats are going to be approving tax cuts, because they like to raise taxes instead of lower taxes.

"But we'll be, in the not to distant future, announcing a very major middle-income tax cut."

Even amid the market declines from the coronavirus, Trump expects the strong fundamentals to pull the market through before tax cuts or even an administration-sought Fed interest rate cut.

"The markets will all come back," Trump continued. "The markets are very strong. Consumers are unbelievably strong. Companies are very strong. We have one problem. We've got to get this problem brought into focus, and it is right now. I think our professionals are doing a great job."

White House officials are expected to present economic stimulus plans amid the coronavirus, although sources say the talks are "very preliminary," per the Post.

There are no current plans for coronavirus-related tax cuts, according to Chairman of the Senate Finance Committee Chuck Grassley, R-Iowa, to the Post.

"At this point, the coronavirus has not had a broad impact on the U.S. economy and its effects have been limited," Grassley told the Post.

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