UPDATE 1-White House mulling tax cuts but not to counter weakness -adviser

The Trump administration is considering a package of tax cuts designed to buttress the economy's long-term growth that could be rolled out during the 2020 election campaign, but it is not considering reductions now to counter economic weakness, White House economic adviser Larry Kudlow said on Thursday.

Kudlow told Fox Business Network that a reduction in payroll taxes - which President Donald Trump said earlier this week was possible - was unlikely, but that personal tax rates could be lowered and tax brackets shrunk. The administration had long talked about the possibility of what Kudlow called a "tax cuts 2.0" package, but news reports have said the White House was considering reductions that could be rolled out if warning signs on the economy became troubling.

Kudlow aimed to shoot that idea down in his interview with Fox Business and later remarks to reporters. "We're not formulating tax policy for some sort of near-term action. We don't believe in the recession talk," he told Fox Business. "I think the economy is very strong."

Instead, he said the administration was aiming to come forward with a package that would "create additional tax incentives for middle-class folks, for blue-collar workers, for small businesses." "You might see that during the campaign, to be perfectly honest," Kudlow told Fox Business.

Also Read: Trump administration moves to enforce abortion restriction