Treasury secretary says there's no payroll tax cut in GOP stimulus bill
Treasury Secretary Steven Mnuchin said a payroll tax cut will not be included in the forthcoming legislative package expected to be rolled out by Senate Republicans.
Mnuchin said the President's "priority for the moment is to get money into Americans quickly and one of the problems with the payroll tax cut is it takes time."
He unsuccessfully pressed for one earlier in the year, and renewed comments this week make it clear the policy remains a key White House priority. But a growing number of Republicans aren't in favor of the idea and most Democrats don't support it.
Payroll tax cuts have had mixed results in the past, and some economists argue that it's not the best way to boost the economy right now.
A payroll tax cut would reduce the amount taken out of workers' paychecks to fund federal programs including Social Security and Medicare. Congress would have to decide how much to reduce the rate and how long the tax holiday would last.
Currently, workers pay about 7.65% of their wage and salary incomes. Employers match the amount while those who are self-employed pay both shares, though they get to deduct the employer portion.