Republicans Shy Away From Trump’s Payroll Tax Cut, Dig In On Liability Protections For Companies
Lawmakers note that a payroll tax cut helps only those gainfully employed at a time when record numbers of Americans are filing jobless claims. Instead Republicans focus their attention on protecting businesses whose workers may get sick on the job. Meanwhile, the Department of Justice begins taking action against fraud in the small-business relief program. And some lawmakers call on leaders to provide tests to members.
The Washington Post:
Trump’s Demand For Payroll Tax Cut Is Rebuffed On Capitol Hill As Lawmakers Spar Over Next Virus Aid Bill
President Trump’s latest red line for the next phase of coronavirus legislation — a payroll tax cut for workers — has few fans in Congress even among Republicans, further complicating the path toward a new rescue package as House Democrats rush to release their own plan as early as next week. (Kim, DeBonis and Werner, 5/5)
Politico:
Trump's Tax Cut Dreams Hit Republican Resistance
"Right now, not much," the Senate Finance Committee chairman said, worrying that the tax cut could drain retirement funds or leave older Americans with the view that Congress doesn’t take “seriously” the plight of the Social Security Trust Fund. “I’m going to give it due consideration, if I can see a strong group of people who think it’s the right thing to do,” added Grassley (R-Iowa), whose committee handles federal tax policy. But he said the president’s preference wouldn’t be the last word — a sentiment shared by many in the Senate GOP: “The president proposes, we dispose.” (Everett, 5/5)
The Associated Press:
Pelosi Pushes Ahead On Massive Virus Bill, But GOP Wary
Even in absentia, House Democrats are seeking to drive the debate on the fifth coronavirus response bill, promising to produce a mega-package stuffed with Democratic priorities even as a chorus of GOP leaders voices hesitation about more spending. Pelosi promises that the Democratic-controlled House will deliver legislation to help state and local governments through the COVID-19 crisis, along with additional money for direct payments to individuals, unemployment insurance and a third installment of aid to small businesses. The amount of funding is to be determined. (Taylor, 5/6)
Reuters:
Republicans Seek Tax Cuts In Next Coronavirus Bill; Senator Warns Congress May Spread Virus
U.S. Republicans underscored the need for tax cuts and business liability protections in any new coronavirus legislation on Tuesday, while blocking a Democratic attempt to require transparency for a $650 billion-plus program for struggling small businesses. (Morgan and Cornwell, 5/5)
Politico:
Chamber, Trial Lawyers Group Each Say Public Is On Their Side In Coronavirus Liability Fight
As they prepare to face off over the next coronavirus relief bill, the U.S. Chamber of Commerce and a trial lawyers group are each trying to convince lawmakers that the American public is on their side. The Chamber and its allies are lobbying Congress to make it harder for workers and customers to sue companies they blame for giving them the virus, arguing that such provisions will protect businesses as the economy reopens. The American Association for Justice, which represents trial lawyers, is fighting back, saying such proposals would shield reckless companies from being held responsible. (Meyer, 5/6)
The Hill:
Battle Brewing Over How To Get More Relief Money To Americans
A fight is emerging in Washington over how best to get more money into people’s pockets to weather the coronavirus pandemic. President Trump is making a payroll tax cut a priority for a future recovery package, but Democrats, as well as some Republicans, are not keen on that idea. Democrats argue that a better option is to provide Americans with direct payments like the ones mandated by the $2.2 trillion coronavirus relief package Trump signed on March 27. (Jagoda, 5/5)
The Washington Post:
Protect And Compensate Federal Workers On The Coronavirus Front Lines, Senators Say
Stronger steps are needed to protect and compensate federal employees in front-line positions at risk of exposure to the coronavirus, a group of senators said in a letter sent Tuesday to senior Trump administration officials. Federal agencies also should be further pushed to allow full-time telework by all employees eligible to work remotely and to keep employees in paid status if they cannot telework but must stay home because they personally are at high risk, says a letter from Sen. Chris Van Hollen (D-Md.) and 18 other senators, most of them Democrats. (Yoder, 5/5)
The New York Times:
Senators Descend On Quiet Capitol, Sacrificing Pomp For Safety’s Sake
Lawmakers donned face masks. Congressional employees’ desks were ensconced in plexiglass shields. The floors and sidewalks of Capitol Hill were marked with circular panels emblazoned with images of feet to show lawmakers and aides where to stand to keep a safe social distance — like dance-step diagrams, but for trying to avert the transmission of a lethal virus. With the Senate back in Washington for a session that Congress’s top doctor said carried health risks given the continued spread of the coronavirus, the chamber has quickly resumed a semblance of its routine, but with some trappings that cast an eerie pall on the proceedings. (Cochrane, 5/5)
The Wall Street Journal:
Justice Department Eyes Fraud In Lending Program For Small Businesses Hit By Coronavirus Crisis
Federal prosecutors are mounting a broad search for fraud in emergency lending programs designed to assist businesses battered by the coronavirus crisis, a top Justice Department official said Tuesday. The Justice Department “has a lot of leads and there are multiple ongoing investigations of individuals and small businesses,” Assistant Attorney General Brian A. Benczkowski said in an interview. Prosecutors also will apply scrutiny to the activities of banks, which are charged with disbursing the funds in some of the programs, he added. (Michaels, 5/5)
The New York Times:
Pair Is Arrested On First Fraud Charges Tied To Small-Business Loan Program
Two New England men were arrested on Tuesday on charges of attempting to defraud the government’s small-business lending program, marking the first federal fraud charges related to the $660 billion program that was aimed at helping businesses hurt by the coronavirus pandemic but has been riddled with problems. The case against the men, David Staveley of Andover, Mass., and David Butziger of Warwick, R.I., is part of the Justice Department’s broad effort to fight coronavirus-related crimes, including health care fraud, hoarding, price gouging and scams devised to steal money both from people and from federal economic assistance programs for businesses in need of aid. (Benner, 5/5)
The Hill:
McConnell Pressed To Expand Coronavirus Testing In Senate
Senate Majority Leader Mitch McConnell (R-Ky.) is coming under pressure to increase testing for the coronavirus in the Senate amid concerns that the Capitol could become a hot spot and wind up spreading infection around the country. Senate Health Committee Chairman Lamar Alexander (R-Tenn.), one of McConnell’s close allies who is retiring at the end of this Congress, pressed the GOP leader on Tuesday to have all members of the upper chamber tested for the highly contagious virus before flying back to their home states. (Bolton, 5/5)
The Hill:
Health Chairman Warns Senate Could Become 'Virus-Spreading Machine' Without Testing
Senate Health Committee Chairman Lamar Alexander (R-Tenn.) is urging Senate Majority Leader Mitch McConnell (R-Ky.) to accept testing kits offered by the White House so lawmakers can be tested for the coronavirus before flying back to their homes states. Alexander told reporters after a Republican lunch Tuesday that he has advised McConnell that it would be wise for senators and House members to get tested for the virus after spending time in Washington, a COVID-19 "hot spot." (Bolton, 5/5)
