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Things are starting to get real with the next round of stimulus funding.
Many people have been counting down to today which is the first day that the Senate is back in session. We are expecting to hear big news this week regarding the next stimulus package and it looks like things have indeed kicked off.
Today, congressional Republicans met with President Trump regarding details of the next stimulus package.
Lawmakers present included House Minority Kevin McCarthy, R-Calif. and Senate Majority Leader Mitch McConnell, R-Ky.
According to USA today, “McCarthy said both the payroll tax cut and another round of checks for Americans were currently under consideration, though details could shift as the measure is drafted.”
However, McCarthy did not offer any specific details regarding more stimulus checks.
So we know that stimulus checks are still on the table but we just have yet to receive specifics.
There is some resistance from Republicans to the potential payroll tax cut.
Many question whether or not cutting payroll taxes will truly incentivize businesses to hire more employees. Sure, it will save them money, but will they pocket that or will they be looking to hire more employees?
Also, many lawmakers feel that payroll tax cuts will do nothing for individuals who are unemployed and need immediate assistance. Simply put, right now many businesses and individuals just need cash in their pockets.
After Monday’s White House meeting, Treasury Secretary Steven Mnuchin said the Trump administration would start negotiations at $1 trillion.
That is only 1/3 of the total amount proposed by Democrats and also it conflicts with statements made prior by President Trump.
Mnuchin also called for a reduction in the unemployment benefits going out.
“We’re going to make sure that we don’t pay people more money to stay at home (than) go to work,” he said. “We want to make sure that people who can go to work safely can do so. We’ll have tax credits that incentivize businesses to bring people back to work.”
The next step is for Chief of Staff Mark Meadows to join the Senate Republicans tomorrow during their weekly lunch with the hopes of progressing the debates.
After that, the focus will switch to beginning to compromise with Democrats.
Just how those negotiations will play out will be extremely interesting.
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Daniel Gillaspia is the Founder of UponArriving.com and creator of the credit card app, WalletFlo. He is a former attorney turned full-time credit card rewards/travel expert and has earned and redeemed millions of miles to travel the globe. Since 2014, his content has been featured in major publications such as National Geographic, Smithsonian Magazine, Forbes, CNBC, US News, and Business Insider. Find his full bio here.