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TCJA, Deregulation Will Help Economy Recover, Says Kudlow

Posted on Apr. 10, 2020

The U.S. economy will “snap back” to its pre-pandemic glory once the coronavirus is abated, the White House’s top economic adviser predicted, giving partial credit to tax cuts and deregulatory policies enacted early in the Trump administration.

The Tax Cuts and Jobs Act, along with the Coronavirus Aid, Relief, and Economic Security (CARES) Act (P.L. 116-136) and the delay in various tax filing due dates, will help Americans weather the economic storm of COVID-19 and recover in its aftermath, National Economic Council Director Larry Kudlow said April 9.

“I believe, once we get through this . . . this economy will snap back very rapidly,” said Kudlow during a virtual townhall on Fox BusinessMaking Money With Charles Payne. Kudlow is also a member of the White House coronavirus task force.

Kudlow described the CARES Act’s employer payroll tax deferral as a “small business payroll tax holiday,” and said that it was an incentive-driven program that would free up money for Americans during the crisis.

The provision allows employers and self-employed individuals to defer payment of the employer share of Social Security taxes for 2020, with half due December 31, 2021, and the other half due December 31, 2022.

The extension of federal income tax due dates from April to July will also help Americans endure the pandemic, said Kudlow. The IRS announced several additional filing extensions on April 9.

“All of the tax cuts that President Trump put in place are still in place,” said Kudlow, describing the U.S. economy as “roaring” before the spread of COVID-19 because of previous tax cuts and deregulation enacted under the Trump administration.

Kudlow also cited the deferral of federal student loan payments and said the deregulation of several government entities allowed faster production of protective masks and medical equipment.

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