Treasury Secretary Steven Mnuchin said Tuesday that infrastructure spending would be a “priority” for President Trump if the economy requires stimulus to power through a slowdown caused by a coronavirus outbreak.
Mnuchin said at a House Ways and Means Committee hearing that while the U.S. benefits from a “very resilient economy,” the president and administration could turn to a long-sought bipartisan infrastructure package to boost growth.
“If there’s a need to stimulate the economy as a result of the coronavirus, I am sure that infrastructure is a priority for the president,” Mnuchin said.
Trump and congressional Democrats have long struggled to cement a
bipartisan deal to pour billions of dollars into rebuilding U.S. roads,
bridges, railroads and waterways. Hopes of a breakthrough have dwindled
with just eight months until the 2020 election, but fears of a
coronavirus-driven economic slowdown have revived talk of a potential
deal.
Mnuchin’s comments on infrastructure came in response to a question from House Ways and Means Committee Chairman Richard Neal (D-Mass.). Infrastructure has long been a priority for Neal, and he and Mnuchin had been having conversations about the issue even before the coronavirus outbreak dominated the headlines.
Trump said in a tweet late Monday that he thinks House Democrats should propose a one-year payroll tax cut, saying that such a move would be “great for the middle class.”
But Neal said in his opening statement that he thinks that the administration should prioritize infrastructure as a way to stimulate the economy over short-term tax cuts.
“Before the administration begins to entertain any proposals for temporary tax cuts, the most important way that we can proceed in my judgment … if we were to develop a stimulus package, the soundest way to do that is clearly to proceed with a major infrastructure initiative,” Neal said.
A major obstacle to enactment on an infrastructure package is figuring out how to pay for it. House Democrats released a $760 billion infrastructure package in February but did not include pay-fors. Neal said at the time that Democrats wouldn’t be proposing a revenue stream unless they have an agreement with the administration.
Rep. Earl Blumenauer (D-Ore.), a supporter of increasing the gas tax, noted at Tuesday’s hearing that many states have worked on a bipartisan basis on infrastructure funding in recent years. He said that he hoped that Congress and the administration could look at what has been done in those states.
https://thehill.com/policy/finance/485659-mnuchin-trump-to-prioritize-infrastructure-in-any-coronavirus-stimulus-package
Mnuchin said at a House Ways and Means Committee hearing that while the U.S. benefits from a “very resilient economy,” the president and administration could turn to a long-sought bipartisan infrastructure package to boost growth.
“If there’s a need to stimulate the economy as a result of the coronavirus, I am sure that infrastructure is a priority for the president,” Mnuchin said.
Mnuchin’s comments on infrastructure came in response to a question from House Ways and Means Committee Chairman Richard Neal (D-Mass.). Infrastructure has long been a priority for Neal, and he and Mnuchin had been having conversations about the issue even before the coronavirus outbreak dominated the headlines.
Trump said in a tweet late Monday that he thinks House Democrats should propose a one-year payroll tax cut, saying that such a move would be “great for the middle class.”
But Neal said in his opening statement that he thinks that the administration should prioritize infrastructure as a way to stimulate the economy over short-term tax cuts.
“Before the administration begins to entertain any proposals for temporary tax cuts, the most important way that we can proceed in my judgment … if we were to develop a stimulus package, the soundest way to do that is clearly to proceed with a major infrastructure initiative,” Neal said.
A major obstacle to enactment on an infrastructure package is figuring out how to pay for it. House Democrats released a $760 billion infrastructure package in February but did not include pay-fors. Neal said at the time that Democrats wouldn’t be proposing a revenue stream unless they have an agreement with the administration.
Rep. Earl Blumenauer (D-Ore.), a supporter of increasing the gas tax, noted at Tuesday’s hearing that many states have worked on a bipartisan basis on infrastructure funding in recent years. He said that he hoped that Congress and the administration could look at what has been done in those states.
https://thehill.com/policy/finance/485659-mnuchin-trump-to-prioritize-infrastructure-in-any-coronavirus-stimulus-package
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