Treasury Secretary Mnuchin
- looking at unemployment benefits that are 70% wage replacement
- he and White House Chief of Staff Meadows will meet with McConnell Thursday morning
- Republicans still working on new formula for expanded unemployment benefits
- payroll tax cut will not be in this coronavirus bill
The news here is that the payroll tax cut is apparently off the table. McConnell set this up yesterday when he said that fighting for a payroll tax cut would take senators from the campaign trail. The president has been adamant about a payroll tax cut but he has his excuse especially given the potential of the GOP loses the Senate in the upcoming elections.
Also, th e70% of wage replacement is different than the idea proposed yesterday which slashed the emergency unemployment benefits from $600 per week to $400 per month (or $100 per week). The 70% sounds better, but I wonder how that works for workers in the service business to get the majority of their income from tips vs. wages?