CNBC Washington correspondent, Eamon Javers, tweets
The tweet thread reads:
1. With markets in turmoil this morning, where are we on virus stimulus? I’ve spoken to two senior admin officials today who say the WH is working on various ideas. But it doesn’t seem to have gone much further than the brainstorming stage.
2. A senior administration official tells me this morning virus ideas were kicked around at the WH over the weekend. But he cautions that there’s nothing on paper and it is still a long way off. “Under pressure, will they want to say they have a plan? Yes. Do they? Not really.”
It is going to take a while before this even turns into anything concrete it seems. Trump’s election bid may be hanging in the balance here and for now, the best he can do is still to play the Fed card I reckon.
This is hardly confidence inspiring if you’re an investor and looking at the market now.
This has a low-percentage chance of ever happening but between this and zero-fee trading, the stock market is going to turn into a proper bucket shop.
The proposal, one of many new tax cuts under consideration, would see a portion of household income treated as tax-free for the purposes of investing outside a traditional 401(k). Under one scenario, a household earning up to $200,000 could invest $10,000 on a tax-free basis, although officials noted these numbers are fluid.
These details are vague but this sounds more like a cut on capital gains.