White House drops payroll tax cut after GOP allies object

WASHINGTON — President Donald Trump on Thursday reluctantly dropped his bid to cut Social Security payroll taxes as Republicans stumbled anew in efforts to unite around a $1 trillion COVID-19 rescue package to begin negotiations with Democrats who are seeking far more.

Frustrating new delays came as the administration scrambled to avert the cutoff next week of a $600-per-week bonus unemployment benefit that has helped prop up the economy while staving off financial disaster for millions of people thrown out of work since the coronavirus pandemic began.

Trump yielded to opposition to the payroll tax cut among his top Senate allies, claiming in a Twitter post that Democratic opposition was the reason. In fact, top Senate Republicans disliked the expensive idea in addition to opposition from Democrats for the cut in taxes that finance Social Security and Medicare.

“The Democrats have stated strongly that they won’t approve a Payroll Tax Cut (too bad!). It would be great for workers. The Republicans, therefore, didn’t want to ask for it,“Trump contended.

“The president is very focused on getting money quickly to workers right now, and the payroll tax takes time,” Treasury Secretary Steven Mnuchin said at the Capitol. Only Sunday, Trump said in a Fox News interview that “I would consider not signing it if we don’t have a payroll tax cut.”

The long-delayed legislation comes amid alarming new cases in the virus crisis. It was originally to be released Thursday morning by Senate Majority Leader Mitch McConnell. But the Kentucky Republican instead hosted an unscheduled meeting with Mnuchin and White House acting chief of staff Mark Meadows and delayed the planned release of the proposal until next week.

McConnell scrapped a choreographed rollout that would have featured Republicans with tough reelection races claiming credit for provisions like a $15 billion appropriation for child care assistance for parents trying to go back to work while many schools will remain closed this fall.

McConnell now says the rollout won’t come out until next week.

“Our Republican colleagues have been so divided, so disorganized and so unprepared that they have to struggle to draft even a partisan proposal within their own conference,” said Democratic leader Chuck Schumer.

The must-have centerpiece for McConnell is a liability shield to protect businesses, schools and others from coronavirus-related lawsuits.

The still-unreleased GOP measure does forge an immediate agreement with Democrats on another round of $1,200 checks to most adults. The Republican package will also include tax breaks for businesses to hire and retain workers and to help shops and workplaces retool with new safety protocols. A document circulating among lobbyists claims the package would increase the deduction for business meals to 100 percent, offering help to the restaurant industry.