Trump’s Payroll Tax Cut Would Dwarf the 2008 Bank Bailout – The New York Times

“WASHINGTON — Almost overnight, President Trump has gone from insisting the economy would not need fiscal help to weather the coronavirus to proposing a stimulus plan that would cost more than the 2008 Wall Street bank bailout or the 2009 stimulus bill aimed at digging the United States out of a deep recession.

The centerpiece of Mr. Trump’s stimulus proposal, which remains a work in progress, is a temporary tax cut that by itself would add nearly $1 trillion to the national debt: a suspension of all Social Security payroll taxes through the end of the year. Some economists have cheered the idea as the right move at a fraught moment when workers are quarantined, schools are closing and large gatherings are being canceled.

But others — including those who have called for aggressive congressional action — say the plan would be an inefficient way of stoking consumer demand at a time of supply shortages and a growing number of quarantines.

Lawmakers on both sides of the aisle have given the proposal a cool reception. Senator Charles E. Grassley of Iowa, the Republican chairman of the Senate Finance Committee, told reporters on Wednesday that he did not see a need for immediate action on a payroll tax cut. Representative Steny H. Hoyer of Maryland, the second-ranking Democrat in the House, said Wednesday that the proposal was a “nonstarter.” “