Trump Wants to Give You Cash: Here’s What Others Think Should Happen

Senator Chuck Grassley wanted to create targeted fiscal policies to combat the coronavirus, aiming money at travel-related businesses. President Trump has other ideas.

Trump said he’ll ask Congress for a payroll tax cut and other “very major” stimulus moves, but left out details. Still, a payroll tax cut can only mean one thing, that working Americans pay less in taxes, therefore they have more cash.

That might sound good, but it’s not likely to goose the economy very much, and certainly won’t replace the spending lost on airline travel, hotels, movie theaters, theme parks, concerts, sporting events, etc.

To do that, Congress would need to shovel cash to consumers and businesses as fast as possible, not drawn out over months of paychecks, $20 at a time.

The president favors a broad payroll tax cut but others inside the White House want a targeted response that benefits industries and areas hardest hit by the virus, advisers say.

Neil Bradley, chief policy officer for the U.S. Chamber of Commerce, said:

“This isn’t a situation where we need to flood the economy. What we need to do is help anyone who’s adversely impacted navigate and get to the other side of this.”

Bradley thinks that means income support for workers laid off and aid for the travel, tourism and other sectors impacted by the virus.

Small business owners, already squeezed by high debt, rising wages and Trump’s tariffs on Chinese goods, are likely to be among the most affected if customers stay home.

Bradley said:

“The way we think about it is, if you have a business that was an otherwise profitable ongoing concern that is impacted by this, you shouldn’t have to go out of business because of this temporary shock.  Individuals that were otherwise employed should not have to go into default.”

Any move such as a payroll tax cut or rebate would likely need the approval of Congress and action may not be imminent, as lawmakers are scheduled for a recess next week.

House of Representatives Speaker Nancy Pelosi on Monday issued coronavirus spending priorities for Democrats, including paid sick leave for quarantined workers, enhancements to unemployment insurance, food stamps and other nutrition programs, and reimbursements for coronavirus medical treatments.

The BlackRock Investment Institute said:

“The key vulnerabilities that need to be addressed: cash challenges faced by companies, especially small- and medium-sized enterprises, and households.”

It called for generous government support to expand sick pay, adjustments to welfare and unemployment insurance programs to temporarily enhance benefits and, if necessary, direct payments to households.

For businesses, it called for tax deferrals to boost cash flow. Disaster relief mechanisms could be used to push cash to firms deeply affected.

 

See Comments (4)

Leave a Reply


Your email address will not be published. Required fields are marked *

*

Comments (4)


  1. Robert Kozuboski
    Reply

    I believe that all Americans should receive a sum of money not just a few select. Something like Obama did.

  2. Jean White
    Reply

    What is behind the coronavirus? Closing down schools, businesses, causing panic. Lets pay everybody, sounds more to me like a Democratic Way to stimulate action from the Democrats.They love to have citizens depend on the government, instead of the citizen being independent . Stop and think America is just over 200 years old and look what we citizens have accomplished. Look at all the Hugh cities we have built. It is almost beyond imagination. Where have the Democrats been the last three years? They sure didn’t offer the president any help. . Regardless of all the crap the president put up with he moved the country forward with no help from the Democrats . Businesses such as Cruised lines, Air Flights, Walmart’s, Home
    depots, etc. are large enough to prepare for a crisis. If you want to help them make them a loan, why should the taxpayer pay.

    President is right, cut the taxes of the everyday worker

    Business

  3. Concerned Citizen
    Reply

    What Trump is doing is positive. Trump is our GREAT INTELLECT and through his troops, he is pioneering a new revolution in dealing with various issues. At the polls, let us give Trump 100% credit! Sound good? Good!

  4. James Logsdon
    Reply

    The demorats need to quit blocking Trump’s stimulus plan! He needs to be able to do it now!

Do NOT follow this link or you will be banned from the site!