U.S. Sen. David Perdue supports President Donald Trump’s proposal to slash payroll taxes as part of a stimulus package during the coronavirus outbreak.
“I think that’s at the top of my list as having an immediate impact,” Georgia’s senior senator said today.
Trump met privately with Senate Republicans, including Perdue and U.S. Sen. Kelly Loeffler, this afternoon. With Treasury Secretary Steven Mnuchin and other economic advisers by his side, he discussed the proposed payroll tax and potential bailouts for certain industries impacted by reductions in travel and tourism.
Loeffler released a statement that stopped short of endorsing a tax cut but praised Trump and other White House officials for addressing the impact coronavirus is having on businesses.
“During today’s meeting, we discussed several measures to help American workers and employers, reassure the markets and continue growing the strong economy, while continuing to mitigate the outbreak,” her statement said. “As the situation develops, the most important thing we can do as Americans is to take commonsense actions and listen to the guidance of health officials.”
Perdue mentioned that Congress took a similar step a decade ago during fallout from the Great Recession. President Barack Obama signed a 2% social security tax cut into law that providing a $1,000 savings to employees making $50,000 in 2011.
Still, Democrats question whether a tax cut is the best way to deal with the economic impact of coronavirus. They say any stimulus passed by Congress should prioritize filling gaps for hourly workers who may be forced to stay home during the health crisis and working families.
“The President often only wakes up to a problem after it has an effect on Wall Street; and his solutions are often aimed, misguidedly, only at calming the nerves of those on Wall Street,” Senate Minority Leader Chuck Schumer said. “The real answer in this case is to protect the American people, focus on their health and economic security, and competently respond to the public health crisis at our doorstep.”
There is not yet any formal plan, and the president’s advisers are still determining costs associated with a payroll tax cut and other concepts.
Separately, Democratic leaders have floated their own ideas, such as paid sick leave for impacted workers and protections against price gouging.
Perdue, who spent time as chief executive of athletic brand Reebok and Dollar General discount stores, said he is open to hearing ways to provide relief for workers who aren't collecting paychecks because of any economic slowdown or orders to stay home.
“I wouldn’t close the door on any of them right now,” he said of the various ideas floating around the Capitol. “The main thing is to make sure that people get subsidized back to the minimal level that they need. Literally millions of people in America go from payday to payday.”
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