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Republicans Push Back Against Phase 4 Relief Bill

Posted on Apr. 3, 2020

House Republicans want to focus on implementing the most recent coronavirus relief package rather than rush into crafting another bill.

House Minority Leader Kevin McCarthy, R-Calif., told reporters on a conference call April 2 that it isn't “appropriate” to immediately pass another bill once Congress is back in session. Instead, McCarthy said it is essential that the $2.2 trillion Coronavirus Aid, Relief, and Economic Security (CARES) Act (P.L. 116-136) is implemented correctly.

The call with reporters came right after House Speaker Nancy Pelosi, D-Calif., held a similar one during which she again said that Democrats are committed to passing a recovery bill that would focus on creating jobs through infrastructure while also helping states and municipalities battle the pandemic.

Pelosi said she hopes a bill will be drafted with Republican input, but assured reporters that Democrats would have a measure ready once they’re back in session after April 20. Pelosi said she is confident the White House would be willing to entertain a fourth stimulus bill centered around infrastructure.

Pelosi also announced her intent to create a bipartisan committee to oversee the coronavirus response, but McCarthy dismissed that idea, telling reporters that an oversight committee already exists in Congress.

Time Needed

The rollout of the CARES Act hasn't been seamless, as demonstrated by Treasury's about-face on guidance that Social Security beneficiaries must fill out a simple return to receive an economic stimulus payment. After pressure from lawmakers, Treasury announced April 1 that seniors won’t have to file with the IRS to receive the rebate.

The IRS has also been working to quickly dole out payments electronically to those who have direct deposit information on file with the agency. House Ways and Means Committee member Steven Horsford, D-Nev., said in a release that he has been assured by the IRS and Treasury that payments will begin the week of April 13.

This was confirmed later in the day by Treasury Secretary Steven Mnuchin, who said at a White House press briefing that payments to those with direct deposit will begin within two weeks.

But as practitioners begin to digest the rules and provisions in the CARES Act, more questions are being asked. IRS Chief Counsel Michael Desmond, speaking on an April 2 webinar hosted by the American Bar Association Section of Taxationconfirmed that his agency has received a plethora of questions regarding the modification of the net operating loss rule that will require further guidance.

Ways and Means ranking member Kevin Brady, R-Texas, said that businesses will need time to better understand which options provided in the CARES Act to utilize. Brady said the deferral of payroll taxes could be used by businesses as an interest-free loan to improve cash flow. He also noted that the employee retention credit will help businesses hold on to their employees.

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