Treasury Secretary Steven Mnuchin said Thursday morning that the next coronavirus relief package will not include a payroll tax cut.
The GOP bill was expected to be released Thursday, but has been delayed “as GOP lawmakers and the White House strained to finalize an opening offer in negotiations with Democrats,” The Wall Street Journal reported.
Senate Majority Leader Mitch McConnell, R-Ky., said on the Senate floor Thursday afternoon that ”We’ll be laying down a framework next week.”
The GOP proposal will focus on: kids, jobs and the economy and healthcare, McConnell said.
“Republicans want to send a second round of payments to households,” McConnell said.
“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, because we need to reopen the economy,” Mnuchin said on “Squawk Box,” a CNBC program. “One of the issues I think you know about the payroll tax cut is people get that money over time. So the president’s preference is to make sure that we send out direct payments quickly so that in August, people get more money.”
The previous direct payments “worked before,” Mnuchin continued, as “retail sales was up year over year 1%; people went out and spent that money in small businesses, and that’s having a big impact in the economy. So as I said, it’s all about getting money now for kids and jobs.”