President Trump, Treasury Secretary Steven Mnuchin, Secretary of State Mike Pompeo in the Rose Garden on May 29. Photo: Win McNamee/Getty Images
Senate Republicans' upcoming coronavirus relief proposal will not include a payroll tax cut, Treasury Secretary Steven Mnuchin told reporters Thursday.
Between the lines: Trump had recently said he wouldn't sign a new stimulus bill without a payroll tax cut — something many people expected he'd be forced to cave on, given its unpopularity among Senate Republicans.
- It's the first of potentially many losses for the White House in this next tranche of funding, as Republicans show they're willing to push back on his priorities.
- Economists largely agreed that the payroll tax cut would do little to help the economy.
What they're saying: "The president's very focused on getting money quickly to workers right now and the payroll tax takes time, so we'll come back and look at that," Mnuchin said.
- "He likes the payroll tax calculation. We think it's the right, long-term policy … but he understands that direct payments work now," Mnuchin added.