Trump's tax proposals on life support as his own party rejects them for new stimulus
US President Donald Trump, pictured on July 8, has assailed Britain's US ambassador as a "pompous fool" and slammed outgoing premier Theresa May's "foolish" policies following a leak of unflattering diplomatic cables. (AFP/File / NICHOLAS KAMM)

President Donald Trump has stated he wants payroll tax cuts to be a key part of the next round of coronavirus stimulus.


But his proposal may already be dead on arrival. According to The Washington Post and Politico, several GOP senators don't want to pursue the idea.

“I’m not a particular fan of that,” said Senate Majority Whip John Thune (R-SD). “I guess I’m open to being persuaded that it’s something that could be effective, but I think some of the things that we are currently doing are having a bigger impact.”

"I’ve never thought that really would be effective,” said Sen. Susan Collins (R-ME). Sen. Shelley Moore Capito (R-WV) agreed, saying, “I think we looked at that early on and I think we just didn’t think that would have the desired impact."

The parties have divergent goals for what to get out of the next stimulus bill. One of the most contentious points involve a measure pushed by Senate Majority Leader Mitch McConnell (R-KY) that would shield corporations that bring their employees back to work from lawsuits related to the pandemic.

The parties seem to broadly agree, however, that payroll tax cuts will do little. Such a measure would only give money to people who are still working, and would leave out the millions who have lost their jobs or been furloughed because they have no income to pay taxes on.