Trump Gives Up Payroll Tax Exemption... Focuses on Extending Unemployment Benefits and School Opening Support Funds

Republicans Give Up on Payroll Tax Introduction Amid Skepticism
"Let's Focus on Other Priorities," They Argue

[Asia Economy New York=Correspondent Baek Jong-min] U.S. President Donald Trump has abandoned the payroll tax exemption, which was being discussed as an additional economic stimulus measure. He also decided to extend the weekly $600 unemployment benefits, which expire at the end of this month, but with a reduced amount.

President Trump stated during a COVID-19 briefing on the 23rd (local time) that since the Democrats oppose the payroll tax exemption, he told Republican lawmakers to pursue something else.

He said, "I want to see it (payroll tax exemption), but if I cannot get the Democrats' votes, we have to move on to another plan."

U.S. President Donald Trump is receiving a ball thrown by Mariano Rivera, the legendary closer of the New York Yankees, on the 23rd. President Trump held an event for youth baseball players on the White House lawn to celebrate the opening of the American professional baseball season.
[Image source=AP Yonhap News]

Previously, President Trump had claimed he would not sign a stimulus bill that did not include the payroll tax exemption. Treasury Secretary Steven Mnuchin also said in an interview with CNBC on the same day that the payroll tax cut was removed from the draft bill, adding, "We want to do everything, but if we cannot do everything, we want to quickly resolve unemployment insurance, schools, and (COVID-19 related) liability issues first." However, the payroll tax cut was reportedly opposed even within the Republican Party. The Washington Post reported, "Republican senators rejected President Trump's payroll tax cut proposal."

On the same day, the U.S. Department of Labor announced that new unemployment claims last week rose to 1.416 million, marking an increase for the first time in 16 weeks. This was seen as a sign that the economic slowdown due to the resurgence of COVID-19 is becoming a reality. Instead, the U.S. government and Republicans agreed to reissue the previously paid $1,200 cash per person and extend the expanded weekly $600 unemployment benefits, which expire at the end of this month. The unemployment benefits are likely to be reduced to about 70% of wages.

The draft also includes a second Paycheck Protection Program (PPP) for small businesses, as well as funding plans to support education: $105 billion for education funds, $70 billion for kindergartens and elementary to high schools, and $30 billion for colleges. President Trump urged the Democrats to agree on budget support for in-person school classes.

This content was produced with the assistance of AI translation services.