President Donald Trump said Wednesday that he will not be trying to implement a payroll tax cut, despite saying a day earlier that he was considering it.
What did Trump say?
"I'm not looking at a tax cut now," Trump told reporters on Wednesday outside the White House. "We don't need it. We have a strong economy."
This was a change from Tuesday when Trump said he was looking into instituting the tax cut on a temporary basis.
"Payroll tax is something that we think about, and a lot of people would like to see that, and that very much affects the workers of our country," he told reporters at the time.
The last time the payroll tax was cut was during the Obama administration as a way to help end the 2008 recession. Trump referred to this when he talked to reporters.
"Certainly a payroll tax cut, President Obama did that in order to artificially jack up the economy," Trump said. "President Obama had zero interest rates. I don't have zero interest rates. I have real interest rates, and despite that I have a strong economy. President Obama did two payroll tax cuts, and despite that I have a much stronger economy."
Trump has frequently, including Wednesday morning on Twitter, criticized the Federal Reserve for raising interest rates, which he argues keeps the economy under his administration from reaching its full potential. The Fed periodically raises interest rates during times of economic growth in order to control inflation. These interest rates were temporarily dropped to zero to help stimulate the economy after the 2008 recession.