Mitch McConnell has merged Senate Republicans around a second stimulus check, but it has not been … [+]
Republican and White House leaders are struggling to reach an internal consensus on an initial stimulus package proposal. During a lunch meeting Tuesday, Senate Republicans repeatedly clashed with each other, as well as with Treasury Secretary Steve Mnuchin and Trump’s chief of staff, Mark Meadows, over the bill. A lawmaker described the lunch as “messy,” and Senator Roy Blunt (R-Missouri) noted that “about 15 different members wanted to make a point, and they did.”
Republicans opposed various aspects of a possible relief bill, including the general cost, the inclusion of a payroll tax cut, and the exclusion of funds for coronavirus testing. However, the senators rallied around other provisions, including sending a second stimulus check to the Americans, though details about size and scope were still unclear. Senate Majority Leader Mitch McConnell, who is spearheading the legislation, said at a press conference on Tuesday: “I am going to table a bill in the next few days that is a starting point, which is widely supported significant among Republican senators, probably not everyone. ”
Republicans now support a second stimulus check
Republican support for a second stimulus check is a marked departure from his opposition several months ago. In May, Republicans unified and spoke out against a second payment. However, a worsening economic outlook, coupled with a dramatic increase in coronavirus outbreaks, is the likely impetus for the Republican change.
On Tuesday, McConnell officially approved another stimulus check for the first time. “We want another round of direct payments: direct payments to help American families continue to drive our national return,” he said during a Senate news conference. There are still some lingering reluctance to include another stimulus check. “There was some support and some opposition, both, to direct payments,” said Senator John Cornyn (R-Texas); however, McConnell’s strong momentum should be able to corner a majority.
While a second stimulus is now more likely not to be included in the Republican aid proposal, many details remain to be resolved. For example, McConnell did not provide details on whether a second payment would be as large as the first round of checks or whether the eligibility criteria would be different. Individual taxpayers earning less than $ 75,000 were eligible to receive a full $ 1,200 stimulus check when the CARES Act was passed, but McConnell has expressed some interest in reducing income eligibility for a second stimulus, presumably to keep the overall cost of the new relief bill.
Leaving some of the details ambiguous will also provide McConnell with additional levers to push forward in upcoming negotiations with Democrats.
Republicans oppose Trump’s payroll tax cut lawsuit
Lining up in a second stimulus check may have been the easy part for Republicans. Discussions over the inclusion of a payroll tax cut were much more controversial. In recent days, Trump and administration officials have indicated that a payroll tax cut was a red line issue for the next bill, and Trump told Chris Wallace during an interview that he “would consider not signing it if we don’t have a payroll tax. ” cut.”
Republicans resist cutting payroll taxes
Mnuchin had initially indicated that a payroll tax cut would be included, even going so far as to say it was “on the bill Monday.” However, Senate Republicans firmly refused to protest, indicating during Tuesday’s briefing that they were not on board with the idea. “Mnuchin and Meadows were greeted with such a buzz at the idea at the Senate GOP luncheon on Tuesday that Mnuchin made no attempt to persuade anyone to reconsider,” according to The Washington Post.
Senior Senate Republicans voiced their concerns publicly. “I’m not a fan of that,” said John Thune (R-South Dakota), the second-ranking senator, speaking of a payroll tax cut. “If it’s about choosing between writing checks and cutting payroll taxes, I think it’s pretty clear that checks actually have a more direct benefit to the economy.” Senate Finance Committee Chairman Charles E. Grassley (R-Iowa) also spoke out against the provision, arguing that the extra money would not quickly reach voters.
A small group of Senate Republicans endorse the inclusion of a payroll tax cut, primarily due to perceived ease of implementation. “This does not require any action, it requires less, it requires doing less of something, not doing more of something,” said Senator Kevin Cramer (R-North Dakota).
The White House returns to the red line
The White House seemed to back off its insistence on cutting payroll taxes after the senators’ resistance attack. “I don’t know there are any red lines in any negotiation, but there certainly are high priorities and it will continue to be a very high priority for the president,” Meadows said. Mnuchin added that they were still “in talks” about the payroll tax, although he told reporters that the White House had not ruled out the issue.
In particular, McConnell did not mention a payroll tax cut when describing the stimulus package to journalists on Tuesday, indicating the fluidity of the situation. “There are some differences of opinion on the issue of reducing payroll taxes and whether that’s the best way to do it,” he said during a press conference. “And so, we are still arguing with management about it.”
The result
Republicans will need to reach an internal consensus and draft a proposal before negotiations with Democrats can begin in earnest. Internal strife within the party will mean a delay not only in releasing an initial version of the bill, but also in engaging in talks with Democrats, a process that will be just as complex, if not more. Senator Chuck Grassley (R-Iowa) summed it up best, noting that “all I can say is that this whole process is the art of compromise.” Hopefully Congress can get involved quickly.
Additional related readings:
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