The nearly $2 trillion emergency relief package for the novel coronavirus pandemic reportedly includes a payroll tax cut for employers only, not employees, CNBC reported Wednesday.
Senate Majority Leader Mitch McConnell said early Wednesday morning that a bipartisan deal on the bill had been reached after multiple days of it being stalled in the Senate. The legislation is expected to pass later Wednesday when the senators vote at noon, according to McConnell. (RELATED: Speaker Pelosi Moves Forward With Her Own Coronavirus Package, Despite Current Senate Negotiations)
President Donald Trump was one of the people pushing for this payroll tax cut, but wanted it for all Americans. It appears as though the tax cut in this legislation will not be for employees. In addition, “employers would have to pay it back on a staggered basis in coming years,” according to CNBC.
The senators also reached an agreement regarding airlines, according to Javers. This “was the major stumbling block that kept this thing delayed until last night,” Javers reported. The bill reportedly has direct grants for airlines that will not have to be paid back.
However, the airlines cannot “make layoffs through a date later this year,” according to CNBC. This date has not yet been reported but will be included in the text when it is released. The nearly $2 trillion package also reportedly includes a provision to allow the government to take an equity state in some of the airlines.
The Senate package also reportedly includes a $17 billion federal loan program intended for Boeing aircraft, two sources said according to The Washington Post. The bill notes that this $17 billion is for businesses “critical to maintaining national security,” but the two sources said it was largely developed for Boeing.
This is separate from the $58 billion allocated to giving loans for cargo and passengers airlines, WaPo reported.
“The president is aware and did agree to the specific provision that’s in there that was highlighted by [Senate Minority Leader] Chuck Schumer last night which prevents entities controlled by the president, the vice president, and members of Congress and others to take advantage of aid through the Treasury,” Javers added.
“That would specifically seem to be aimed at the president’s own companies that he owns. I’m told the president is aware of that provision and did agree to it.”