White House Drops Payroll Tax Cut After GOP Allies Object

The White House reluctantly dropped its bid to cut Social Security payroll taxes Thursday as Republicans prepared to unveil a $1 trillion COVID-19 rescue package, yielding to opposition to the idea among top Senate allies.

“It won’t be in the base bill,” said Treasury Secretary Steven Mnuchin, speaking on CNBC about the payroll tax cut, killing the idea for now. The cut in the tax that finances Social Security and Medicare has been a major demand of President Donald Trump.

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