Former Reagan Economist Praises Trump Payroll Tax Cut Proposal As Stock Market Bounces Back

After yesterday’s historic stock tumble, stocks bounced back today to finish over 1100 points higher after President Trump said that he would, “go to Capitol Hill on Tuesday and ask for Congress to approve a payroll tax cut and relief for hourly workers.”

#Trump to fight #coronavirus economic impact with #payrolltaxcut & other programs via @FoxBusiness #SmallBusiness https://t.co/Tt2o9vZDnz
— Gene Marks (@genemarks) March 10, 2020

Former Reagan Economist and Medal of Freedom recipient Art Laffer appeared on Fox New’s show America’s Newsroom this morning and praised the proposal, calling it a “great move.”

Art Laffer on how to handle a financial crisis. pic.twitter.com/KvGEOLthrQ
— John Ruddick (@JohnRuddick2) March 10, 2020

Laffer: I’ve been through this so many times, I was with Reagan in ’87, I watched the whole thing in 2008.

Co-Host Sandra Smith: How does this compare?

Laffer: This one could be as bad if there were mistakes made by the government. Now in ’87 we did not make any mistakes. Reagan’s vision back then was, ‘don’t just stand there, undo something,’ which is the right thing to do. In 2008, these people caused the great recession by their responses to a natural financial collapse there, they caused it. And I just don’t want Trump administration to do that, just wait until clear thinking, calm peaceful waters, then you make the right decisions. I think the payroll tax cut is a great move, I think what the fed did was to expand liquidity is a great move, in times of crisis, discount freely, which is what the fed did.

Co-Host Ed Henry: Alright, Art Laffer preaching some patience

President Trump either was tuning in or was made aware of the segment and responded on Twitter saying that Laffer “said great things about a Payroll Tax Cut!”

Ronald Reagan’s great economist, the recipient of the Presidential Medal of Freedom, has just said great things about a Payroll Tax Cut!
— Donald J. Trump (@realDonaldTrump) March 10, 2020

Laffer, who has been dubbed the father of side-supply economics, was awarded the Medal of Freedom last year in the Oval Office where President Trump said that “few people in history have revolutionized economic theory like Arthur Laffer.”