Nancy Pelosi, the speaker of the U.S. House of Representatives, said she rejected Treasury Secretary Steven mnuchin’s “proposal” to restart a new round of stimulus negotiations because the White House demanded a smaller stimulus and refused to give in on the issue.
“we have made it clear to the government that if they are willing to increase $1 trillion, we are willing to reduce $1 trillion,” Pelosi said in a joint statement with Senate leader Chuck Schumer on Wednesday. “When they start to take this procedure seriously, we are willing to resume negotiations.”
“she made it clear that she would not continue to negotiate unless we agreed with her proposal in advance, which costs at least $2 trillion,” Mr. mnuchin said. He added that the government wanted to agree on a package of measures to meet the needs of a range of outbreaks, but “there is no interest in consultation.”
Mr. mnuchin said earlier that Congress could pass a “little more than $1 trillion” stimulus plan first, and then discuss the additional stimulus measures needed next.
Mr mnuchin told Fox Business Network: “we can talk about it later this year or in January, and we don’t have to do everything at once.”
there has been no negotiation between the two sides since the deadlock at the meeting last Friday, which could drag on for weeks. Both parties will hold presidential nominations in the next two weeks, which will distract some of the attention from the relief plan negotiations.
Pelosi said on Wednesday that there were “great differences” between the two sides, but she was hopeful of reaching a compromise. She told reporters that stimulus measures could not wait until the autumn.
the White House said people would have to lower their demands for state and local aid and $600 a week for unemployment benefits to restart negotiations. But Pelosi and Schumer said aid must be provided to prevent further job cuts and service cuts in local governments.
“we have to come to a conclusion, but they also have to recognize that we have to fight the virus, we have to invest in state and local governments, and we have to send money to the American people to keep the economy going,” she told MSNBC earlier.
U.S. President Donald Trump has signed an executive order to postpone the payment tax on some people and temporarily increase the weekly unemployment benefits by $300. For now, he seems content with these moves. With the stock market moving to record highs this month, he is not under pressure. In Wednesday’s trading, the S & P 500 broke through its all-time closing high.
Mr. mnuchin reiterated on Wednesday that the government hoped that Congress would finally approve the exemption of the salary tax that trump had allowed to pay late in his administrative memorandum over the weekend. According to estimates by the federal budget accountability Committee, the cost could be $100 billion.
mnuchin also said that the Ministry of finance was studying the guidelines for delayed payment of salary tax. The main challenge for the Department is that some employers are concerned that if they send money to employees for tax deferral, they will face huge payment needs once the delay period is over.