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We are currently awaiting details regarding the next round of stimulus funding which will be the fifth and potentially final round.
This package may be valued anywhere between $1 trillion and $3 trillion and may contain some of the following types of aid:
- Stimulus checks
- Paycheck Protection Program funds
- Payroll tax cuts
- Liability protection
- Student loan benefits
- Infrastructure funding
As we approach the proposed deadlines for passing a stimulus package, we are starting to hear more details about where lawmakers stand.
And it’s starting to become clear that there is perhaps more division than initially anticipated.
In fact, the Washington Post “reports the lack of consensus could push passing this coronavirus aid until August.”
Yesterday, Treasury Secretary Steven Mnuchin, White House Chief of Staff Mark Meadows, and White House National Economic Council Director Larry Kudlow met with Senate Republicans to discuss the next stimulus package, including the payroll tax cut.
According to the Washington Post, Republicans are not supportive of the idea of a payroll tax cut or cutting funding for coronavirus testing.
“There are some differences of opinion on the question of the payroll-tax cut and whether that’s the best way to go, and so we’re still in discussion with the administration on that,” McConnell told the Wall Street Journal.
These payroll tax cuts may be a major point of division especially considering that President Trump signaled he may not sign the next stimulus package unless it includes a payroll tax cut.
This is interesting because we thought the major points of dispute for the next round of funding would be between Democrats and Republicans.
But now, it’s looking like one of the biggest issues is actually between Senate Republicans and the Republicans in the White House.
McConnell wants to get the package passed before the end of July, but there has been other resistance within the GOP party.
“We’ve already spent $3 trillion of money we don’t have,” said Rep. Ralph Norman (R-SC).
“We need a non-cash outlay, because we’re borrowing the money. We’ve got to have liability protection and we’ve got to have a moratorium on the payroll tax.”
At this point, there is definitely not a clear path that the next stimulus package is going to take.
It does look like it will contain more stimulus checks but it’s not clear how those will work and other key benefits like the payroll tax cut policy seem to be in Republican limbo.
Democratic leaders reportedly feel like the Republicans are in disarray as the finalization of the next stimulus package is taking place.
Mnuchin is committed to staying on Capitol Hill for the next two weeks hoping to reach an agreement by the end of the month.
At this point, there is just over one week to get things done before August so it’s starting to look like an agreement may not be made until after July.
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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.