Trump may veto next coronavirus stimulus package if it excludes this
Things are now starting to shape up regarding the next coronavirus stimulus package. We now have some idea of what the next package might include. Though there is still uncertainty over a few things, such as the federal unemployment benefit and direct payments, other parts of the next coronavirus stimulus checks package are now starting to become clear.
Get The Full Series in PDF
Get the entire 10-part series on Charlie Munger in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues.
Q2 2020 hedge fund letters, conferences and more
What does Trump want in next coronavirus stimulus checks package?
One of the first things that we can now expect to be included in the next coronavirus stimulus package is the payroll tax cut. President Donald Trump, on Sunday, said that he might not sign the next stimulus checks package if it does not include a payroll tax cut.
RV Capital Co-Investor Letter for the first half ended June 2020, titled, “Business Owner TGV vs. the DAX.” Dear Co-Investor, The NAV of Business Owner was €777.13 as of 30 June 2020. The NAV increased 4.5% since the start of the year and 683.2% since inception on 30 September 2008. The DAX was down 7.1% Read More
“I want to see it,” Trump told Fox News’ Chris Wallace. When asked if he would approve or veto the bill without a payroll tax cut, he said, “I’ll have to see. I would consider not signing if we don’t have a payroll tax cut.”
Trump believes that such a move would help boost the economy. However, a payroll tax cut enjoys little backing among either Democrats or Republicans.
A payroll tax cut would “hit Social Security like a wrecking ball with a massive tax cut for the country’s biggest corporations. We are going to oppose this with everything we have,” Sen. Ron Wyden of Oregon said, according to Forbes.
This is not the first time Trump has talked in favor of a payroll tax cut. Such a move would ensure slightly larger paychecks for Americans, but will direct fewer funds to Social Security. There is a consensus that such a move will primarily help those that have jobs. The need of the hour, however, is to help those who have lost their jobs due to the coronavirus pandemic.
Both Trump and McConnell support liability protection
Along with the payroll tax cut, another thing that we can expect to be part of the next coronavirus stimulus package is liability protection. Senate Majority Leader Mitch McConnell has already made it clear that no stimulus package would pass the Senate if it doesn’t include liability protection.
McConnell wants liability protection for schools, businesses and other entities that open amid the coronavirus pandemic. “Nobody should have to face an epidemic of lawsuits on the heels of the pandemic that we already have related to the coronavirus,” McConnell said last week.
President Trump supports liability protection as well. Trump said yesterday that he does not like the idea of someone going to a restaurant and then suing the owner with a claim of catching the virus there.
“They do need a form of immunity,” Trump said. “Nobody’s going to be able to prove it.”
Liability protection is also important because Trump is pushing hard to reopen schools. With liability protection in place, schools at least would not have to worry about getting sued.