The Atlanta Federal Reserve is projecting a contraction of the nation’s gross domestic product (GDP) of 1.5 percent in the first quarter, flashing a warning sign for the U.S. economy.
The Atlanta Fed last week was predicting 2.3 percent positive growth for the first quarter. A month ago, it was registering 3.9 percent growth.
Consumer sentiment also fell off a cliff in January as measured by the University of Michigan’s monthly survey, dropping nearly 10 percent from January.
No federal taxes on those making $150K or less is being discussed.
From the Kiplinger article:
President Donald Trump has flirted with the idea of abolishing the IRS and creating a revenue stream from tariffs to offset major tax cuts. His latest pitch reportedly calls to end taxes for individuals earning less than $150,000 a year.
“I know what his goal is — no tax for anybody making under $150,000 a year,” Commerce Secretary Howard Lutnick told CBS News. “That’s his goal. That’s what I’m working for.”
Lutnick later walked his assertion back adding that Trump would consider such a massive tax cut if he were able to balance the budget (a feat that hasn’t been accomplished since 2001 under the Clinton administration, when the U.S. last experienced a fiscal year-end budget surplus). The U.S. has only experienced a budget surplus four times in the last 50 years, according to the U.S. Treasury Department.
IFYP
consumption taxes via tariffs will show up as meaningful. But not having to file is cool
when he insisted that no tax on tips was important, i said that’s stupid - source of income doesn’t matter. just raise the exclusion for everyone (tips or traditional comp).
the qualifier of “if he can balance the budget” would be the hangup.
