A payroll tax holiday sought by President Trump will not be in the next coronavirus stimulus package, Treasury Secretary Steven T. Mnuchin says.
“It won’t be in the base bill but as we know, this is CARES 4.0, there could be CARES 5.0,” he said in a CNBC interview Thursday.
His comments mark an about-face by the administration. Earlier this week, Trump had said he would reject any stimulus legislation if it didn’t include the tax holiday. “I would consider not signing it if we don’t have a payroll tax cut,” Trump told Fox News in an interview that aired Sunday.In dropping the idea, the administration is acknowledging the idea has little support in Congress. Senate Republicans had been mostly dismissive and Democrats in both chambers opposed another broad-based tax cut. The next chance for another stimulus bill could come in late September when Congress and Trump will need to agree on a spending bill to avert an Oct.
Resolving the payroll tax dispute clears a major hurdle for the GOP-led Senate, increasing the chances that Majority Leader Mitch McConnell can release a plan as soon as Thursday. The release of the plan would be the first step in talks with Democrats for the next stimulus.
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