Differing views over whether and when Congress should act on additional coronavirus response legislation are on display, and under scrutiny, during a Senate hearing today (May 19), and President Trump yesterday seemed more than amenable to CARES Act changes while advocating tax ideas like full business meal deductions.

Today's Senate Banking Committee hearing features Fed Chairman Jerome Powell, who has repeatedly said Congress needs to provide more relief in areas like state and local funding and unemployment benefits; and Treasury Secretary Steven Mnuchin, who has said if spending more on the crisis is needed it could happen but not for weeks and the Administration is not in a rush and will take its time. Secretary Mnuchin, the Administration's chief negotiator on response legislation thus far, has suggested the nation's economic woes are temporary, while Powell has signaled concern that troubles could linger.

President Trump's comments came during a meeting with restaurant executives and industry leaders, who told him extending the Paycheck Protection Program (PPP) eight-week deadline to 24 weeks is paramount to a payroll tax cut and industry-specific measures that could be taken like full deductibility of business meals. "I think deductibility is the biggest thing you can possibly do," the President said. Secretary Mnuchin said of the PPP change, "We're working on a technical fix that we do have bipartisan support for it to extend it. I'm not sure it's that long." Industry representatives also asked that the forgiveness requirement that 75% of loans be spent on payroll be changed, which Democratic leaders also support.

President Trump, who has faced criticism from Democrats for lack of a national testing program, highlighted a story in yesterday's Washington Post saying testing capabilities are up but are not being met by demand. He seemed to have an easy banter with the restaurant executives and said he has friends in the industry.

Today the President makes remarks on supporting farmers, ranchers, and the food supply chain.

A group of about 130 lawmakers asked Treasury in a letter yesterday to delay all beer, wine, and distilled spirits excise tax deadlines for 2020, as well as interest or penalties accrued.

A column in today's Wall Street Journal tried to make heads or tails of the red/blue state divide on matters related to the virus, including reopening and additional legislative response. Two-thirds of confirmed cases are in states with Democratic governors, who also lead eight of the nine states with the highest deaths, it said. The House-passed $3 trillion HEROES Act, highlighted by $1 trillion in state and local funding and more direct payments, is currently going nowhere in the Republican-controlled Senate, "where the imbalance between coronavirus impact and political clout is most acute. [The] six hardest-hit blue states have more than half the country's coronavirus cases, and a third of its population — yet only 12% of the votes in the Senate. It is almost a perfect formula for political tensions," the column said.

On scheduling, the Senate is in this week, giving lawmakers the opportunity to express concerns about coronavirus response, but will be out of session next week for the Memorial Day recess. Democratic leader Chuck Schumer (D-NY), who has pressed the Administration for a federal testing plan, continues to question Republicans' desire for a pause in virus-related legislating. "There are now more than 35 million Americans out of work through no fault of their own; almost 1.5 million Americans are sick, nearly 90,000 have died; and Senate Republicans decided to take the month off from the coronavirus," he said on the floor yesterday. The House is out this week after passing the HEROES Act and authorizing remote voting last Friday but is expected to reconvene in some fashion next week (on May 27) to consider Foreign Intelligence Surveillance Act (FISA) reauthorization legislation.

On CNN last night, House Speaker Nancy Pelosi (D-CA) acknowledged there are some areas of disagreement on a next bill that require bipartisan negotiation, and said of Republicans, "They're going to come to the table. They must."

EY Alerts and other resources are here.

The global EY Tax COVID-19 Response Tracker has been updated through May 15.

EY Webcasts this week include:

• Tuesday, May 19, International tax talk, 1:00 p.m. ET. During this webcast, part of an ongoing series, a panel of experienced EY professionals will provide you with information on major tax law changes in the countries and jurisdictions covered by our US-based Global Tax Desk Network as well as discuss COVID-19 economic stimulus — measures and potential impacts. Register
• Thursday, May 21, Corporate Tax amid a Pandemic: Insights on running a tax function in challenging times, 9:00 a.m. ET. Around the world, heads of tax are having to navigate a labyrinth of tax implications like availing of global stimulus and tax incentives, technological dependencies and demands, and changing supply chains. Please join Kate Barton, EY's Global Vice Chair - Tax, and prominent Tax business leaders as they discuss what needs to be considered now to increase resilience and thrive in what comes next and beyond. Other panelists include: Dan Goff, Corporate Vice President, Worldwide Tax and Trade, Microsoft; Janine Juggins, Executive Vice President, Global Tax & Treasury, Unilever; Louise Weingrod, Vice President, Global Taxation, Johnson & Johnson; and Mark Weisz, Senior Vice President, Global Tax, Walgreens Boots Alliance. Register

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