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Reuters reports that White House economic adviser Larry Kudlow said on Tuesday that President Donald Trump wants to see a 7.6% cut in the payroll tax, hoping it will help staunch economic pain caused by the coronavirus pandemic.

“I know the president wants to see those folks that do back to work to get a 7.6% cut in their payroll tax, so their after-tax take-home pay goes up,” Kudlow said in an interview with Fox Business Network.

Key notes

Kudlow says no question there will be a painful coronavirus contraction.

Says will need to have some pro-growth incentives for US economy.

Says need to wait and see on any payroll protection program changes to relax rules -fox business network.

Says Trump wants to see 7.6 % payroll tax cut.

Say does not believe China will sell US debt.

There are early glimpses of recovery.

Let’s get middle class tax cuts.

Let’s make good trade deals .

Kudlow tells reporters Trump administration has not decided yet on what further coronavirus relief measures it may back.

Trump is not saying he was tearing up China trade deal.

That is all risk positive stuff. However, the main theme stays with tModerna’s COVID-19 vaccine story:

  • Wall Street Close: So much for the COVID-19 vaccine optimism