Trump’s Payroll Tax Cut Idea Stumbles In Face Of Bipartisan Opposition, But Some Version Might End Up In Stimulus Package

The New York Times: Talks Begin On Stimulus Plan As Trump Plays Down Virus Threat
President Trump and lawmakers began negotiations on Tuesday for an emergency relief package to bolster an economy battered by the coronavirus crisis, with lawmakers and administration officials expressing optimism despite partisan divisions about what to include. Mr. Trump, after weeks of playing down potential effects of the virus, called for a temporary elimination of payroll taxes that could cost nearly $700 billion, rivaling both the financial bailout of 2008 and the economic stimulus measure that followed. (Stolberg and Tankersley, 3/10)

Reuters: Washington Considers Actions To Bolster U.S. Economy As Coronavirus Cases Mount
As U.S. coronavirus cases rose steadily, the White House and Congress negotiated measures on Tuesday to bolster the U.S. economy and Americans' paychecks against the outbreak's impact, although there was no immediate sign of a deal. The rise in the number of U.S. cases of COVID-19, a highly contagious and sometimes fatal respiratory illness, has concerned health officials and spurred calls within Congress for action to expand testing and avert an economic meltdown. (Holland and Cowan, 3/11)

The Associated Press: Lawmakers Resist Trump's Proposed Payroll Tax Break
President Donald Trump's proposed payroll tax break met with bipartisan resistance on Capitol Hill as pressure mounts on the administration and Congress to work more vigorously to contain the coronavirus outbreak and respond to the financial fallout. Flanked by his economic team, Trump on Tuesday pitched his economic stimulus ideas privately to wary Senate Republicans on another grueling day in the struggle against expanding infections. (Mascaro and Miller, 3/11)

Roll Call: Tax Cut Plan Hits Rough Patch As Trump, Lawmakers Talk Stimulus
President Donald Trump’s push for some form of payroll tax holiday is stumbling out of the gate as lawmakers and the White House try to cobble together a quick stimulus package to help those adversely affected by the COVID-19 virus. The president wants to cut the Social Security payroll tax, currently 6.2 percent paid by workers and employers on the first $137,700 in wages, to as low as zero through Dec. 31, according to a senior administration official. The White House is also looking at an option to cut only the employee share of the Social Security tax to 2 percent, so clearly the parameters are still the topic of debate. (Lerman and Sword, 3/10)

ABC News: Trump Pushes Economic Relief Amid Coronavirus Crisis: Stay Calm And 'It Will Go Away' 
In a brief appearance at a White House coronavirus briefing Monday evening, the president said reporters would be told more on Tuesday about what he called "very major" and "very substantial" proposals to deal with the novel coronavirus outbreak, which he has tried to downplay. U.S. cases jumped overnight to more than 750 infected across 36 states, leaving at least 26 Americans dead. (Cathey, 3/10)

Politico: Trump Seeks 'Big' Stimulus Steps But Aides Are Skeptical
At a meeting of top economic officials on Monday night, the president and aides like Treasury Secretary Steven Mnuchin, National Economic Council Director Larry Kudlow and Acting Director of the Office of Management and Budget Russ Vought all broadly agreed on ideas such as paid sick leave for hourly workers and loans for small businesses affected by the coronavirus, according to two administration officials briefed on the meeting. But Mnuchin, Kudlow and Vought were far less enthusiastic about the temporary payroll tax cut idea, arguing it is too early to take that kind of measure. “The president seems to like the idea, but there are a number of people around him who were not as enamored of it,” said one administration official. (Cook, 3/10)

Politico: Dems Press Ahead On Coronavirus Package As Senate Waits For Trump
President Donald Trump presented Republican senators with several potential actions Congress could take as lawmakers look to avert disastrous economic impacts from the virus — but he did not offer a specific legislative package during their hour-long lunch meeting on Tuesday, according to several attendees. Trump — who was accompanied by Vice President Mike Pence, Treasury Secretary Steven Mnuchin, and chief economic adviser Larry Kudlow — was eager to show that he was taking charge of the federal response to the burgeoning crisis, including the potential financial fallout associated with it. He rattled off a list of ideas to try to mitigate the economic damage from the outbreak, which is dominating the national dialogue just eight months before he asks voters for a second term. (Caygle, Desidrio and Bresnahan, 3/10)

Los Angeles Times: Coronavirus: Trump Lobbies Republicans On Economic Stimulus
In the first sign of bipartisan cooperation to address the growing health crisis, Treasury Secretary Steven T. Mnuchin was dispatched to begin negotiating an economic package with House Speaker Nancy Pelosi (D-San Francisco). The pairing of Mnuchin and Pelosi (D-San Francisco) on a coronavirus bill comes as Republicans and Democrats are at loggerheads on an economic response. In addition to the payroll tax cut, the White House supports tax relief for the travel and tourism industries. (Haberkorn, 3/10)

Modern Healthcare: Healthcare Not Top Priority In COVID-19 Economic Relief Talks
While lawmakers came together to quickly pass emergency funding to respond to the COVID-19 outbreak, a larger package to address economic fallout from the outbreak is shaping up to be a partisan fight with little focus on healthcare. President Donald Trump on Monday said he plans to call for Congress to pass a payroll tax cut and relief for hourly wage earners, small businesses and the airline and cruise industries. But Democrats prefer an approach that would expand paid sick and family leave and unemployment insurance for those impacted by COVID-19, ensure free testing for the coronavirus and address food insecurity in case of school closures. (Cohrs, 3/10)

The Wall Street Journal: Trump Struggles To Balance Mitigating Epidemic, Protecting Economy
The White House has struggled to strike a balance between mitigating the epidemic and protecting the economy. It swiftly cut off travel to affected countries, which seemed overly aggressive at the time but no longer does. It has since bent over backward to downplay the risk and prevalence of the disease in the U.S., at times with misleading information. Mr. Trump’s focus on the stock market led him to insist that the main economic remedy was for the Fed to cut interest rates. He is still obsessed. On Tuesday he renewed attacks on the Fed, calling on it again to lower rates more than it has done so far. “Our pathetic, slow moving Federal Reserve, headed by Jay Powell, who raised rates too fast and lowered too late, should get our Fed Rate down to the levels of our competitor nations,” he tweeted. (Ip, 3/10)

The New York Times: It’s Not 9/11 Or A Housing Crash. So What’s The Coronavirus Fiscal Playbook?
The government can’t prevent the coronavirus from damaging the U.S. economy. The usual tools that economic policymakers rely on, like tax cuts and stimulus spending, won’t restore canceled conferences, unclog supply chains or persuade wary consumers to go out to bars and restaurants. Even if such policies would help, they conflict with the advice of health officials who are urging “social distancing” to slow the spread of the virus. (Casselman, 3/10)

The Hill: Trump Officials Considering Extending Tax-Filing Deadline Over Coronavirus: Report 
The Trump administration is reportedly considering pushing back the April 15 tax-filing deadline as part of an effort to dampen the effects of coronavirus on American households and businesses. The Wall Street Journal reported Tuesday night, citing two sources, that the administration is likely to extend the deadline. The newspaper reported that no decision has been finalized. (Byrnes, 3/11)