Monday, May 11, 2020

Mnuchin: We’re Absolutely Pushing for the Payroll Tax Cut

I am all for tax cuts and a payroll tax cut is a great idea BUT accompanying a tax cut needs to be a cut in government spending and that is not going to happen.

Without a cut in spending, a payroll tax cut is only going to result in an increase in the deficit that will be mostly financed by the monetization of the debt by the Federal Reserve.

That is, the government will give with the payroll cut but take it out of the hide of individuals via price inflation.

This is not the time to be on a fixed income. You will get screwed.



  1. Since they are spending with or without the payroll tax cut, shouldn’t we be all for the tax cut? I am. It would speed up reality, maybe a year or 5?
    As long as they own the printing press, I don’t see why there would be any caveats to tax cuts.