As the nation’s leaders cobble together plans to help keep the economy afloat amid the coronavirus outbreak, the Treasury Department is considering pushing back the deadline for filing taxes.
Treasury Secretary Steven Mnuchin told Congress on Wednesday that the administration is looking at delaying the April 15 deadline for individual filers and small businesses.
“We are looking at providing substantial relief to certain taxpayers and small businesses who will be able to get extensions on their taxes,” Mnuchin said during a House Appropriations subcommittee hearing.
“We think we can provide over $200 billion of liquidity into the economy by delaying certain tax payments,” he said.
However, Mnuchin did not provide a new deadline.
Additionally, he said that the administration is focused on helping “small and medium-sized businesses” that could suffer financially if their employees have to same home because of the coronavirus.
“There are a large number of workers that are going to be required to self-quarantine, or be at home to take care of family members who are self-quarantined,” Mnuchin said.
“For small- and medium-sized businesses, we think it’s appropriate for the government to pick up those costs,” he added.
Mnuchin’s comments come after President Donald Trump proposed cutting the payroll tax for employers and employees to help boost the economy.
During a press conference at the White House on Tuesday, Larry Kudlow, the Director of the National Economic Council, said a payroll tax is a “bold move.”
“The payroll tax holiday is a bold move. It’s a very bold move, and this is a bold president.”
When asked how the administration plans to pay for the proposed cut, Kudlow said, “Over time we’ll make it up with much better economic growth.”
The idea of delaying the tax deadline, or cutting the payroll tax, comes as Trump and congressional leaders are working to put together some kind of legislation that would alleviate financial pain caused by the coronavirus.
Mnuchin told lawmakers on Wednesday that Trump “very much wants to consider a stimulus bill, whether it’s through a payroll tax [cut] or otherwise.”
However, during a press conference on Monday, House Speaker Nancy Pelosi (D-Calif.) and Senate Minority Leader Chuck Schumer (D-N.Y.) ripped into Trump’s proposals and accused the president of caring more about Wall Street than the average American.
The two Democratic leaders instead proposed an expansion of food stamps, unemployment insurance, and paid medical leave.
Republicans lawmakers did not seem to be on board with the idea of a payroll tax cut either, signaling that Trump’s initial proposals could run into trouble in Congress.
