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Trump’s Hill Visit Brings No Clarity on Coronavirus Response

Posted on Mar. 11, 2020

President Trump met with Senate Republicans March 10 to pitch several ideas for combating the coronavirus and its effects on the economy, but lawmakers are still awaiting concrete details from the White House.

“Our members are open; they want to look at whatever package the president ultimately puts forward,” Senate Majority Whip and Finance Committee member John Thune, R-S.D., told reporters after the lunch meeting.

Trump discussed a variety of subjects, according to Republican senators, but no specifics were offered. Trump told reporters after the lunch meeting that “there was a great feeling about doing a lot of things.”

At a later White House press briefing, National Economic Council Director Larry Kudlow said that Trump would like a payroll tax holiday to extend through the end of the year, and he mentioned the possibility of tax deferral for some industries. But he said more details were still to come.

According to Sen. Mike Braun, R-Ind., there was mention at the meeting with Trump of making the payroll tax holiday permanent. “It’s personally something I wouldn’t be for,” he said, adding that it is an idea that has floated around for years. 

The president also discussed economic relief for oil and gas companies, Sen. Rick Scott, R-Fla., told reporters. But that idea didn’t sit well with all Republicans; Braun said that helping large companies that experience a short downturn would “create a tricky precedent.”

No Payroll Tax Holiday for Dems

Democrats haven’t been receptive to the idea of a payroll tax holiday or helping large companies with tax relief. Instead, expanded unemployment insurance and paid sick leave are popular options among Democrats, House Ways and Means Committee member Daniel T. Kildee, D-Mich., told reporters after a March 10 meeting of committee Democrats.

“I have yet to hear anything from the administration other than the suggestion of the payroll tax cut,” House Ways and Means Committee Chair Richard E. Neal, D-Mass., said, adding that a payroll tax holiday isn’t a priority for Democrats.

Kildee questioned whether a payroll tax holiday would benefit Americans in need, arguing that it would disproportionately benefit wealthier Americans.

Senate Democratic leadership similarly took issue with the relief being discussed by the White House and Republicans. Finance Committee ranking member Ron Wyden, D-Ore., reiterated that helping Wall Street wouldn’t receive Democratic support and that the Trump administration needs to concentrate on encouraging people to stay home without fear of losing their jobs.

Ways and Means Democrats also called on the IRS to consider extending the April 15 tax return filing deadline in consideration of the coronavirus’s impact on the filing season.

“Specifically, we are concerned about the ability of the IRS to provide taxpayer assistance and process returns, as well as the ability of taxpayers, free tax preparation sites, and tax professionals to meet the filing deadline,” the group wrote in a March 10 letter to IRS Commissioner Charles Rettig.

Consensus Necessary

With Congress scheduled to be in recess the week of March 16, Thune said it was imperative that leaders from both chambers find a way to provide relief to the American people because any measure will have to pass the House and get 60 votes in the Senate.

Despite Democrats distancing themselves from a payroll tax holiday, Ways and Means member Bill Pascrell Jr., D-N.J., said the suggestion wasn’t off the table. And fellow taxwriter Rep. Donald S. Beyer Jr., D-Va., conceded that while Democrats don’t consider it a priority, it could be part of a larger package.

Republican senators said that Trump also mentioned Democratic priorities, such as paid sick leave and waiving co-pays for coronavirus testing, suggesting that the two sides could ultimately reach a deal.

But neither side knows when a solution can be achieved. Grassley said senators weren’t given a timeline for action, except that it is urgent.

There is also a possibility the administration will craft its own solution without any help from Congress. “There are some things that they can do administratively. I’m not going to get into specifics, but there are some things they can do through agencies,” Thune said.

Alexis Gravely contributed to this article.

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