Treasury Secretary Steven Mnuchin is weighing in on President Donald Trump’s proposed payroll tax cut, confirming it “won’t be” part of the base coronavirus relief bill.
On Thursday morning, Mnuchin appeared on CNBC’s “Squawk Box” where he discussed different aspects of the next coronavirus relief package.
When asked about the payroll tax cut, Mnuchin said, “It won’t be in the base bill.”
He also explained the decision noting the prioritization of direct payments which would offer a more immediate form of funding for Americans.
“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,” he said.
Mnuchin went on to outline the issue he foresees with incorporating a payroll tax cut. While it will provide some form of financial relief, he noted that time would be an issue.
He continued, “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.”
See Mnuchin’s remarks below:
Payroll tax cuts "won't be in the base bill" of the next #coronavirus relief legislation, says Treasury Secretary @stevenmnuchin1 pic.twitter.com/2Z8YOyWC4J
— Squawk Box (@SquawkCNBC) July 23, 2020
Mnuchin’s remarks came shortly after Senate Majority Leader Mitch McConnell (R-Ky.) debuted preliminary proposals for the next coronavirus bill, as previously reported on IJR.
While the Kentucky lawmaker confirmed that direct payments and an extension of unemployment benefits would likely be included, he made no mention of Trump’s proposed payroll tax cuts.
However, Mnuchin has signaled the possibility of changes to the weekly payments for enhanced federal unemployment.
Multiple amounts have been discussed for direct payments and unemployment but there has not been a bipartisan agreement on the exact amounts, as of yet.
Senate Republicans are tentatively expected to unveil their full proposal for the next coronavirus relief package on Thursday.
