President Trump's next round of tariffs on Chinese imports will raise the average trade war cost for U.S. households to $1,000 per year, from $600, because the new duties will largely hit finished consumer goods, JP Morgan Chase researchers said Monday. The tariffs would largely negate any extra money consumers got from Trump's $1.5 trillion tax cut, and unlike with tax-subsidized farmers, "there is no simple way to compensate consumer," Dubravko Lakos-Bujas, JP Morgan's head of U.S. equity strategy, wrote to investors.
Consumer spending is the brightest spot in the U.S. economy right now, and facing slowdowns in manufacturing and business spending, and other warnings signs of a possible recession, the White House is now exploring a payroll tax cut to encourage Americans to keep their wallets open, The Washington Post and The New York Times report, citing several people familiar with the discussions. White House economic adviser Larry Kudlow is also reportedly advocating a capital gains tax cut, which would mostly benefit wealthy investors but, unlike the payroll cut, wouldn't require approval by Congress.
Payroll tax cuts, typically popular among Democrats because they benefit middle class workers, either drain money from Social Security and Medicare accounts or add to the ballooning deficit, already up 27 percent from last year. The White House said Monday that "cutting payroll taxes is not something under consideration at this time," despite Monday's White House discussions and an internal white paper exploring the idea.
Publicly, Trump administration officials have been dismissing the idea of a recession, but "Trump has sent mixed messages," the Post notes. He tweeted that the economy is "very strong," then specifically urged the Federal Reserve to cut already-low interest rates by 100 basis points and pump more money into the economy through "quantitative easing." Cutting benchmark interest rates to 1.25 percent would give the Fed "little additional wiggle room to maneuver if a full-fledged recession began," the Post reports, and quantitative easing is "an extreme step that central bankers take when they are trying to urgently address a slumping economy." Peter Weber
A "massive search operation" is underway for the mayor of Seoul, who has been reported missing, The Associated Press reports.
South Korean police on Thursday said they're searching for Seoul Mayor Park Won-soon after he was reported missing by his daughter, according to Reuters. She says Park left "a will-like" message before he left their home, and she called police after not being able to reach him on his phone, which officials say is turned off, the AP reports. A signal from Park's phone was reportedly last detected in Sungbuk.
A government official confirmed to the AP that Park, who was elected mayor of South Korea's capital in 2011, didn't come to work on Thursday and canceled his schedules. Police say the search operation for Park consists of 150 officers, as well as a drone and a police dog. Brendan Morrow
The Supreme Court will reveal Thursday morning whether Congress, New York state prosecutors, and ultimately the American public will be able to see what's in the tax documents President Trump has worked so hard to keep secret. But on Wednesday night, the White House finally addressed another, lower-profile accounting of Trump's finances, his annual financial disclosure report, that was supposed to be handed in more than a week ago. The filing, required under federal ethics rules, is the only official document publicly detailing Trump's personal finances.
A White House official told The New York Times that Trump had requested an extension because the report was "complicated" and Trump has "been focused on addressing the coronavirus crisis and other matters." This is Trump's second coronavirus extension: The partial disclosure of his assets, debts, and family business performance was actually due in May, but all White House employees had been given a 45-day extension, until June 29, because of the COVID-19 pandemic. Vice President Mike Pence filed his disclosure report by that deadline.
Trump's delay follows conversations between ethics officials and his representatives over a draft of the disclosure report, people briefed on the matter tell the Times. The Office of Government Ethics and Trump Organization declined requests for comment on the filing. Peter Weber
It turns out "closing schools was a lot easier than reopening them" during the coronavirus pandemic, Myah Ward and Renuka Rayasam note at Politico. But Johns Hopkins University — which has made checking COVID-19 infection and death data easy with its coronavirus map — is trying to help, launching another site Thursday to help Americans track how different states plan to reopen schools this fall, plus guidelines from health and education agencies and organizations.
According to this new education tracker, run by the Johns Hopkins eSchool+ Initiative, 43 states and territories have released plans for reopening their schools. The site reviews each plan based on 12 criteria, including coronavirus protection measures, academics, and choices offered to students, teachers, and staff.
The goal of the tracker is to give parents, teachers, staff, school district leaders, and policymakers one place where they can access and compare reopening plans, Annette Anderson, deputy director of JHU's Center for Safe and Healthy Schools, tells Politico. "At the end of the day, it's about trying to make sure that when we reopen, that the reopening benefits all." Peter Weber
The Ventura County Sheriff's Department said late Wednesday that actress Naya Rivera is missing and the subject of a search at Lake Piru, northwest of Los Angeles. Rivera, 33, rented a pontoon boat at the reservoir Wednesday afternoon and her 4-year-old son was found alone in the boat, asleep and wearing his life jacket. Rivera's wallet and ID were also in the boat. The son, who got back in the boat after a swim with his mother, "is in good health," said Capt. Eric Buschow of the sheriff's department. The search, suspended Wednesday night, will continue Thursday with divers and air units.
Rivera played Santana, a cheerleader, on 113 episodes of the TV musical comedy Glee, and dated Glee co-star Mark Salling, who killed himself in 2018 after pleading guilty to possession of child pornography. The son is from her marriage to actor Ryan Dorsey. Peter Weber