Thread by @JakeSherman

G’morning. Today is a critical day for the Washington response to coronavirus

Some things worth noting, from Playbook this AM.

The public is about to see the Washington bickering over how to respond to the coronavirus and its economic impact.

TRUMP and his White House are pushing for a payroll tax cut, which, if you lived through 2011 and 2012, you can surmise its not a very easy thing to pass. (TRUMP also pushing for protections for hourly workers)

DEMS meanwhile are pushing for bolstering unemployment insurance, free coronavirus tests and security for people who get school lunch who have to be out of school.

PELOSI seemed VERY cool to payroll tax cut on Monday evening.

MNUCHIN and Kudlow to the Hill today to discuss w GOP senators

W.H. plan isnt close to done, in stone or even close.

Are they suggesting a holiday or a cut, as obama did in 11 and 12. If so, what would the cut be? Would it be to the employer side, the employee side, or both?

As of now, Republicans have NO CLUE what the W.H. wants.

As I was talking to Republicans last night, even they had no idea what the president would propose. Let alone Democrats, the party that controls the House.

Of course, the politics could get tricky

The calendar is even trickier. Congress has today, tomorrow, Thursday in session before taking off until March 23.

It seems as if Wall Street expects either quick action on a payroll tax cut. I’d say quick action very unlikely and payroll tax cut far from certain, based on convos w a lot of lawmakers.