Republicans scrap Trump's demand for payroll tax cut as they cobble together draft coronavirus bill

[BumRushDaShow]

Source: Washington Post

Senate Republicans have cast aside one of President Trump’s key demands from a new coronavirus stimulus package, refusing to include a payroll tax cut in their opening offer to Democrats, which could be unveiled as soon as Thursday.

In recent days, Trump had insisted that he might not sign an eventual bill if it did not include the tax cut, but the plan was unpopular with Republicans. Treasury Secretary Steven Mnuchin said on CNBC Thursday morning that the White House still liked the idea and would pursue it in potential future legislation.

“It won’t be in the base bill,” Mnuchin conceded. He said the decision was made to instead focus on sending another round of stimulus checks to Americans, because that approach would put money in people’s pockets more quickly. “Let me be clear: We think the payroll tax cut is a very good pro-growth policy, but the president’s focus is he wants to get money into people’s pockets now,” Mnuchin said. He added that "the president’s preference is to make sure we send out direct payments quickly so that in August people get more money.”

Democrats and Republicans had already supported sending another round of stimulus checks, and now that idea appears to be one of a few areas where there is bipartisan support. The evolving GOP plan, which Republicans have struggled to assemble, comes with coronavirus cases surging in much of the nation. The White House and GOP are under pressure to put together a public health and economic response as the November election nears. Republicans had hoped to present their plan on Wednesday but they couldn’t reach agreement, and the situation remained extremely fluid on Thursday morning as well.

Read more: https://www.washingtonpost.com/us-policy/2020/07/23/congress-stimulus-coronavirus-trump/

[beachbumbob]

1. FICA tax holiday ruse is clearly seen for what it is and with over 55 support of trump?GOP cratering

not likely to happen. The BIG one is a shield law and democrats MUST NEVER CAVE on that. Its been a wet dream of GOP to end lawsuits against business for decades

[JohnnyRingo]

4. Amen.

Nail on head, but it doesn't seem that Trump sees it as clearly. Even when they explain it to him.

[underpants]

5. The tax cut is simply for his campaign. Even the GOP knows it won't be enough

Trump just wants this for his campaign. Payroll tax cuts focused on lower levels especially do work but keeping this economy afloat is going to require a lot more cash.

Rents and mortgages aren’t going to be covered. Of course a lot of people are out of work so there’s that too so cutting payroll is useless.

The GOP doesn’t like it but they know the Feds are the only entity that’s going to stop us for going over the tipping point.

[LastLiberal in PalmSprings]

9. How do you cut payroll taxes if there is no payroll?

This is a stealth plan to destroy Social Security, which the GOP has hated since its inception. (The Repugs love America, they just hate Americans.) Sell it as a temporary cut, then make it permanent once workers get back to their jobs, then whoops! there's not enough money to fund Social Security.

Never waste a good pandemic.

[beachbumbob]

17. Most Americans still earning a paycheck

[DownriverDem]

14. Seniors

are moving away from trump.

[lark]

2. Excellent, now follow it up with Dems not accepting any corporate get out of jail free cards.

That's what the oligarchs want the most so they can totally reopen with no expensive protections for workers and not pay a price personally. Workers die in droves but the rich fuckers get no consequences for their murderousness. Better no money for workers than do this because it will directly cause the deaths of so many folks.

[DownriverDem]

15. Hello?

Until we get money out of politics I respectfully disagree. Pick another issue for now.

[lark]

20. Yep, we definitely disagree.

This is critical IMO to not killing the working class and is a huge part of keeping them from profiting from our killing.

[left-of-center2012]

3. "Democrats and Republicans had already supported sending another round of stimulus checks"

For me that's #1,
to help pay my hospital bills.

[cstanleytech]

7. I am not so sure if they should do another check right now.

After all Trump has shown a willingness to exploit such things for his political gain and it would smack to much of trying to buy votes if he does this close to an election so maybe pass it but with the clause that they will not go out until after the election?
That would limit Trumps ability to exploit it.

[LastLiberal in PalmSprings]

12. Fat Donnie will try to make sure his signature is on the checks again.

I wonder if he'll try his scheme to have his signature as payer? They shut him down the first time -- some picky thing about the law -- but the chance to claim he is giving every voter a thousand dollar check is just too good to pass up.

[moonscape]

13. What about those who really need that check? I

personally am fine, but these are desperate times for a lot of people who are struggling to pay rent and buy food. They need help now.

[cstanleytech]

18. There are other ways to help.

For those out of work there are unemployment benefits and for those facing eviction and or foreclosure there are options such as financial assistance that could be setup.

[moonscape]

26. Even if the Repubs would agree

to do that, and do it fairly, funds could not get into folks hands fast enough. But I don’t see getting past the ‘if the Repubs’ part.

Straightforward relief is simple, fast, and less prone to abuse or red tape.

[cstanleytech]

34. "less prone to abuse" Before Trump I would agree however he tried to use the past check to sway the

voters and I suspect he will do the same with another one which is why he is supporting it.

[moonscape]

35. Agree that's why, but to me helping the

desperate comes before political calculation.

Putting that sentiment aside, I don’t think it would help him at this point anyway. The personal impact of CV weighs far heavier than a check that doesn’t compensate for the damage.

[LastLiberal in PalmSprings]

16. Fat Donnie will try to make sure his signature is on the checks again.

I wonder if he'll try his scheme to have his signature as payer? They shut him down the first time -- some picky thing about the law -- but the chance to claim he is giving every voter a thousand dollar check is just too good to pass up.

[left-of-center2012]

30. Anyone who doesn't want it, can shred it.

A lot of us need that $1,200.

[cstanleytech]

33. Yes, I realize that and I could use it as well however I am not sure if it should be done now

if Trump is simply going to try to essentially use it to buy voters like he did with the first check.

[left-of-center2012]

37. There are people lined up for hours at food banks

They can't wait for that $1,200.

[cstanleytech]

38. The other side of that coin though is if that money goes through and it helps Trump win

those same people and millions more will potentially be in an even worse spot economically for years longer if not decades.

[left-of-center2012]

39. Bye

[cstanleytech]

40. Hey I know you won't see this but the truth often hurts and the fact is

that Trump could potentially use this money to sway enough voters to win because there are millions of morons who voted for him once already.
That is why I am not sure if letting another check go through now is the right choice because it does have a few potential risks.

[Yo_Mama_Been_Loggin]

6. The dotard can't be happy about that

[cstanleytech]

8. What he would be truly unhappy with is no more stimulus checks as he wants to buy votes

by putting his name on those checks as well as his campaign and the varies PACs supporting him would air multiple ads to remind the people how much "he" helped them with those checks.

[jimfields33]

10. I hope more then 1200 dollars.

[Baclava]

29. I agree, drop the ceiling, double the payout, works for me! But $1200 is what they are saying

[Bengus81]

11. All the talk about how to get money here,there how to pay for it yet the 14% Corporate tax give away

Still rolls on like nothing has happened. FUCK Bezo's and the other fat cats. Roll BACK 10% of that give away for billionaires--they still get 4% cut, more than I ever got in nearly 50 years of working.

Use those ten of millions that will start coming in to the Treasury to fund programs to help those who need it while the CV is still raging.

[Cicada]

19. Repubs want unemployment pay at 70% of wage

Commuting, buying and cleaning work clothes, payroll tax withheld, coffee and lunch out sometimes, might come to 13% of typical wage. But the unemployed are lower income so their costs to work are probably closer to 18% maybe. If you have childcare your cost to work goes way up so 70% might be pretty close to break even. But the missing piece is health care. The new stimulus bill needs to subsidize health costs of those unemployed. With that the Republican proposal sounds reasonable to me.

Of course much more money is needed to subsidize the economy, more payroll protection loans, more spending on all kinds of things to avoid economic collapse.

[duforsure]

21. This exposes trump

By trying to do this it shows he's wanting to hurt Social Security intentionally. Every retiree and person above 50 should see this as like what he 's still trying to do to the ACA., destroy them.

[usaf-vet]

22. Trying to buy votes with what another $1200 check and to take the first attack on Social Security.

The dummy isn't buying my vote for what $2400.00 and a plan to weaken Social Security. It will be a cold day in hell.

Increase the SS withholding to $400,000 plus. BUT why stop there raise it to SS tax on every cent earned up to $10,000,000 and I might consider buying a red hat that says BYE Trump in 2020

[DeminPennswoods]

23. Unlike Kudlow, Mnuchin is smart enough to know

what Pelosi will/won't agree to and a payroll tax cut wasn't one.

[Warpy]

24. Social Security tax cut pennies for workers, millions for corporations

and underfunding a program that is all most seniors have to live on at present. Absolutely necessary in decent times, it is absolutely vital right now. Fuckers just don't want to wait for us to die off from Covid, they want to add starvation to make us die faster.

[Miguelito Loveless]

25. Didn't Trump say he would veto any bill that didn't cut payroll taxes?

[BumRushDaShow]

28. Last I saw

it became "may not sign" (for example, the OP WaPo article uses that phrase way down in the article at the link).

It's a "technical" difference from an outright veto, because if legislation is "not signed" within 10 days, then it automatically becomes law "without the President's signature". However if such a bill came up at the end of a Congressional session/Congressional adjournment, then "not signing" in that timeframe, would amount to a "pocket veto". Normally vetoes are explicit.

[Miguelito Loveless]

31. Thanks for the civics refresher

I had forgotten those distinctions.

[slumcamper]

27. Folks need money...so increase wages instead of cutting FICA and starving the SS trust fund. n/t

[greenjar_01]

36. Temper tantrum imminent