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$4000 Stimulus & Stimulus Package Update

Republicans originally wanted to spend no more than one trillion dollars on the next stimulus, now they moved that line up to 2 trillion dollars.  Confidential source from inside of the White House reported that Donald Trumps wants to spend the additional trillion dollars on infrastructure.  That would include building roads, bridges, highways, and improving 5G capitialities. 

As the tourism industry suffers amid the pandemic, Donald Trump has supported an idea to give Americans a tax credit to be used toward a vacation to help boost the economy.  He’s referring to it as the “Explore America Tax Credit”.

This proposal could give up to a $4,000 tax credit to Americans for vacation expenses in the U.S.  at hotels, theme parks, restaurants, and other tourism-related businesses.  The credit would cover up to 50% of a household’s total vacation expenses, up to a maximum of four grand.  This would also include visits to restaurants.

According to the U.S. Travel Association, a $400 billion decline in travel spending in the United States this year will translate into a total economic loss of $910 billion in economic output.

I don’t really understand why we would give a tax credit for vacation.  I get it, it would help those industries and the people that are working in them.  I just feel that operating under a tight budget and with record breaking unemployment that the money could be spent in better ways.

But moving on…

Steve Mnuchin said while testifying before the Senate Committee on Small Business and Entrepreneurship that the administration is taking a serious look at whether to do more direct money to stimulate the economy.

The White House is also considering reducing unemployment payments to $250 a week during the second half of the year (that’s in addition to the state unemployment benefits), which Republicans believe will encourage people who lost their jobs to find work.  Because right now many people are making more on unemployment than what they were making while working. Currently, payments are $600 a week, as part of the CARES Act passed in March . The $600 a week is set to expire July 31.

Several proposals for a second relief package for Americans have been put forward but only one of them has moved through the legislative process. The HEROES Act consists of $3 trillion in economic aid for those workers suffering as a result of the pandemic.