Trump and the Republican Party broke up on payroll tax cuts, testing as Covid talks begin


Trump has attributed the increase in virus cases to an increase in evidence, even suggesting that testing should be reduced overall. But the numbers of cases have increased at a much faster rate than increases in test capacity.

After a White House meeting with Trump Monday, Treasury Secretary Steven Mnuchin and Senate Majority Leader Mitch McConnell, House Minority Leader Kevin McCarthy said the tax cut the payroll would probably be included in a Republican proposal. During that meeting, Trump doubled down on the issue and called it “very important.”

“It is tremendous savings and an incentive for companies to hire their workers and keep their workers,” Trump told reporters afterward.

McCarthy reiterated that the Republican Party proposal will focus “on getting the economy moving again” and will “focus on the safety of children as well as teachers.” Mnuchin said the negotiations will start at a price of $ 1 trillion.

Speaking from the Senate floor Monday afternoon, McConnell called the Senate GOP proposal “a strong starting point,” an acknowledgment that reaching consensus will require negotiating with Democrats, who control the House. He did not mention the payroll tax cut.

“It would not be another multibillion-dollar bridge loan to offset a totally closed economy, nor an ordinary stimulus for a nation ready to return to normal,” McConnell said. “The need now lies somewhere in between.”

McConnell reiterated that the United States “is not far from the woods” when it comes to the spread of the deadly virus, and said lawmakers must take “strategic steps to help fired American workers be rehired and American families to your children come back in. ” school this fall. “

Unemployment benefits are expected to be a major point of conflict in the negotiations. The March CARES package included an additional $ 600 in benefits for people that, according to Republicans, discourages people from returning to work. Without congressional action, benefits will expire in the coming days.

Sen. Rob Portman (R-Ohio) said Monday, “We should continue to help, but we must also find a way to personalize it for the individual so that he doesn’t have a disincentive to work.”

Democrats, including President Nancy Pelosi and Senate Minority Leader Chuck Schumer, continue to insist that unemployment assistance payments continue. The House included it as part of the $ 3 billion Heroes Act, passed two months ago, although McConnell declined to take the move.

Another priority for Senate Republicans will be liability protection for businesses and other entities. McConnell has distributed a summary of the proposal, which would offer protections to schools and businesses against coronavirus exposure lawsuits. Democrats so far have shown little openness to the idea, though they have not drawn their own red lines opposing it.

Mnuchin and White House chief of staff Mark Meadows plan to speak to Senate Republicans at their weekly lunch on Tuesday. Meadows also plans to meet with Senate Assignments President Richard Shelby (R-Ala.) Along with Senate AID President Lamar Alexander (R-Tenn.) And Blunt later Monday afternoon. And on Tuesday afternoon, Pelosi will host Schumer, Meadows, and Mnuchin in his office for a meeting on the upcoming coronavirus bill.

Republican sources said the trio of Senate Republicans will especially pressure Meadows and Mnuchin to obtain additional funding for the tests.

Senate Democrats pledge to negotiate only alongside House Democrats. In a letter sent to his caucus on Monday, Schumer called for party unity before the negotiations and reminded Democrats that this was his strength during the March CARES package.

“It was our unity against a first party and Republican draft that allowed for significant improvements, improvements that have benefited millions upon millions of Americans,” Schumer wrote in the letter. “I hope we don’t have to repeat that process. But we will stay together again if necessary. ”