WASHINGTON POST," PHIL RUCKER,
ALSO THE AUTHOR OF "A VERY
STABLE GENIUS."
LOOKING BACK ON THE LAST COUPLE
OF WEEKS, DO YOU THINK THIS IS
WHERE WE WERE HEADED ALL ALONG?
CONGRESS WAS GOING TO GET
NOWHERE AND THE PRESIDENT WAS
GOING TO COME IN AND BLAME THEM?
>> WELL, IT CERTAINLY IS
SOMETHING THAT PEOPLE MIGHT HAVE
PREDICTED.
REMEMBER, THESE NEGOTIATIONS ON
CONGRESS HAD BEEN GOING ON FOR
WEEKS.
IN FACT, HOUSE DEMOCRATS HAD PUT
TOGETHER A PLAN FOR THIS
STIMULUS A FEW MONTHS AGO, AND
IT’S TAKEN A LONG TIME TO GET TO
THIS PLACE.
CLEARLY LAST WEEK AS THEY WERE
NEGOTIATING, THE TWO SIDES WERE
NOT ABLE TO SEE ANY MIDDLE
GROUND.
THE PRESIDENT WAS REALLY ABN
ABSENT NEGOTIATOR THROUGHOUT.
HE WAS SOMEBODY WHO CAMPAIGNED
AS BEING THE ULTIMATE DEALMAKER.
"THE ART OF THE DEAL" IS THE
TITLE OF HIS BOOK, AND YET HE
WAS NOT ABLE TO MAKE IT HAPPEN
HERE, WHICH IS WHY HE DID THESE
EXECUTIVE ACTIONS OVER THE
WEEKEND.
BUT AS CAROL WAS JUST EXPLAINING
AND GARRETT AS WELL, THERE ARE A
LOT OF DUBIOUS ASSERTIONS IN
THESE MEMOS THAT HE SIGNED, AND
A LOT OF QUESTIONS ABOUT HOW
MUCH OF THAT RELIEF IS GOING TO
REACH THE AMERICAN PEOPLE.
SOME STATES ARE GOING TO HAVE TO
BE INVOLVED AND THEY ARE ALREADY
CASH STRAPPED.
SO IT’S UNCLEAR IF THE STATES
ARE GOING TO BE ABLE TO PROVIDE
THE RESOURCES THAT WOULD BE
REQUIRED TO GET ALL THIS MONEY
INTO THE HANDS OF PEOPLE
QUICKLY.
>> ALL RIGHT.
THEN LET’S TALK ABOUT THOSE
SPECIFICS BECAUSE THE PRESIDENT
AND HIS ALLIES HAVE ALWAYS SAID
HE’S A DEAL GUY.
NOT A DETAIL GUY.
THERE WAS NO DEAL, BUT THE
DETAILS DON’T MAKE SENSE EITHER.
THE PRESIDENT SAID PEOPLE ON
UNEMPLOYMENT ARE GOING TO GET
400 BUCKS WHICH IS LESS THAN THE
$600, BUT EVEN IF THEY GET THE
$400, HE SAID STATES WOULD KICK
IN SOME OF THE MONEY.
BUT ON SUNDAY, HE SAID, WELL,
MAYBE NOT.
WHAT IN THE WORLD IS GOING ON?
>> WELL, ACCORDING TO THE ORDER
THAT HE SIGNED, STATES HAVE TO
KICK IN 25% OF THAT MONEY.
SO ONLY ABOUT 300 OF THE $400
WILL BE COMING FROM THE FEDERAL
GOVERNMENT.
AND REMEMBER, THESE STATES ARE
ALREADY UNDER WATER WITH THEIR
BUDGETS BECAUSE THEY’RE NOT ABLE
TO RUN A DEFICIT THE WAY THE
FEDERAL BUDGET IS ABLE TO.
STATE REVENUES ARE FALLING SHORT
BECAUSE THE ECONOMY IS IN SO
MUCH TROUBLE.
THESE GOVERNORS ARE CASH
STRAPPED.
THEY SAY THEY DON’T HAVE THE
RESOURCES TO PROVIDE THIS SORT
OF RELIEF.
WE’LL SEE IF SOME OF THEM ARE
ABLE TO PUT THAT TOGETHER.
BUT IT’S NOT AS IF EVERY
AMERICAN IS GOING TO WAKE UP
TOMORROW AND HAVE A $400 CHECK.
THAT’S NOT HOW THIS PACKAGE IS
GOING TO WORK.
>> THE PRESIDENT HAS BEEN SAYING
FROM THE GET-GO, HE WANTS TO DO
AWAY WITH THE PAYROLL TAX.
THAT’S NOT HAPPENING BUT WHAT
HE’S TRYING TO DO HERE IS A
PAYROLL TAX HOLIDAY.
MEANING YOU DON’T HAVE TO PAY IT
NOW, BUT YOU WILL HAVE TO PAY IT
LATER.
HE’S TURNING IT INTO A CAMPAIGN
PITCH, PROMISING TO MAKE IT
PERMANENT IF HE’S RE-ELECTED.
DOES THE PRESIDENT EVEN HAVE THE
POWER TO DO THAT?
>> WELL, THE CONGRESS HAS THE
POWER TO DETERMINE HOW WE TAX
AND SPEND.
THEY HAVE THAT AUTHORITY.
IT’S WORTH POINTING OUT THERE’S
WIDESPREAD AND BIPARTISAN
OPPOSITION TO THE PRESIDENT’S
IDEA OF A PAYROLL TAX CUT.
REPUBLICANS IN CONGRESS DID NOT
SUPPORT IT BY AND LARGE BUT THE
PRESIDENT IS DOING THIS
EXECUTIVE ORDER NOW, WHICH IS
EFFECTIVELY A HOLIDAY, A DELAY,
BUT IT’S NOT AUTOMATIC.
AND BUSINESSES ARE GOING TO HAVE
TO DEVELOP SYSTEMS TO BE ABLE TO
DELAY THAT PAYROLL TAX THROUGH
THEIR PAYROLL SYSTEMS.
AND THAT’S A BURDEN ON
BUSINESSES AND IT’S UNCLEAR IF
MANY BUSINESSES ARE GOING TO
ACTUALLY FOLLOW THROUGH AND TRY
TO ENFORCE IT OR PUT IT INTO
ACTION BECAUSE OF HOW
COMPLICATED THE PROCESS WOULD
BE.
>> GIVEN HOW MANY REPUBLICANS
DON’T SUPPORT THE IDEA OF A
PAYROLL TAX CUT, GIVEN THAT
STEVE MNUCHIN HIMSELF SAID IT
WOULD TAKE SO LONG, TO YOUR
POINT, TO WORK ITS WAY THROUGH
THE SYSTEM AND NOT GET IN THE
HANDS OF PEOPLE WHO NEED IT
MOST, WHERE DOES THE
PRESIDENT’S, DARE I SAY,
OBSESSION WITH THE PAYROLL TAX
CUT COME FROM?
WHO WANTS IT SO BADLY?
>> YOU KNOW, HE WANTS IT.
HE LIKES THE IDEA OF A TAX CUT
BECAUSE HE’S SORT OF A MARKETER
AT HEART AND IT SOUNDS GOOD AND
YOU’LL NOT FIND THAT MANY
AMERICANS WHO SAY, I DON’T WANT
MY TAXES TO BE CUT.
IT’S CATCHY.
AND HE’S LOOKING FOR WAYS TO
INCREASE CONSUMER CONFIDENCE AND
MAKE PEOPLE FEEL BETTER ABOUT
THE STATE OF THE ECONOMY BECAUSE
THAT HELPS HIM POLITICALLY.
AND SO THIS PAYROLL TAX CUT IDEA
IS SOMETHING THAT HE’S BEEN
TALKING ABOUT FOR MANY MONTHS
NOW, SINCE BACK IN THE SPRING.
IT NEVER GOT ANY TRACTION ON
CAPITOL HILL, BUT NONETHELESS,
IT’S SOMETHING THE PRESIDENT HAS
BEEN TRYING TO ADVANCE ALONG
WITH HIS ECONOMIC TEAM.
HE WAS UNABLE TO GET ANY
LEGISLATION TO THAT END AND SO
YOU SAW THE ORDER HE SIGNED OVER
THE WEEKEND, BUT IT IS NOT A
PERMANENT CUT AS YOU POINT OUT.