Mnuchin: “Now is not the time to worry about shrinking the deficit.” Treasury Secretary Steven Mnuchin told CNBC that the economic crisis warrants e
Mnuchin: “Now is not the time to worry about shrinking the deficit.” Treasury Secretary Steven Mnuchin told CNBC that the economic crisis warrants extraordinary stimulus from Congress and the Federal Reserve. His remarks conflict with some congressional Republicans who argue that an improving economy makes additional spending on coronavirus relief less necessary. Politico reports that the bipartisan Problem Solver’s Caucus is quietly shopping a roughly $2 trillion plan that has drawn Mnuchin’s interest.
Or does a coronavirus relief bill hinge on Speaker Pelosi? House Speaker Nancy Pelosi continues to hold out for at least $2.2 trillion in relief. She thinks President Trump, who is behind in the polls to Democratic challenger Joe Biden, will be willing to sign on to a bill in excess of $2 trillion. If he caves to political pressure, if economic indicators begin to trend downward, or if moderates on either side of the aisle press for a deal, a relief bill still may surface before the election. That’s a lot of ifs.
Analysis: Biden’s tax plan would hit the top 0.1 percent hard. The Penn Wharton Budget Model finds Biden’s tax plan would raise their average effective federal tax rate (including their share of his corporate tax hikes) from 30.6 percent to 43 percent in 2021. On the other hand, middle-income households would pay an effective rate of 17.3 percent, up from…