There has been talk of a possible second stimulus check on the way for Americans in need. Will a second check really be sent? And what about talk of a $4,000 vacation credit?
There are several proposals in the works, but only time will tell if they will come into fruition. The Motley Fool reports that if there is a second stimulus check, it would be decided before August 8, when the Senate goes on recess again until September 8. By September, the focus may have fallen off of stimulus payments and onto confirming judges and other matters that President Trump wants to complete before the November election.
Another factor that could take a stimulus check off the table is unemployment rates, which went down in May. If June rates drop as well, a stimulus check may become less urgent in Trump’s view.
Under the HEROES Act, a second stimulus check would be issued in the amount of $1,200 for each individual and $1,200 for each dependent. The act has passed in the House, but not yet in the Senate, and Mitch McConnell (R-KY) has basically declared the bill dead on arrival. However, the Trump administration has not ruled out other stimulus payments outside of the HEROES Act.
Other stimulus proposals
Another proposal by Sen. Kamala Harris (D-CA) and former Presidential candidate Andew Yang proposed a check of $2,000 each month. Senators Harris, Bernie Sanders (I-VT), and Ed Markey (D-MA) proposed another bill called the Monthly Economic Crisis Support Act, which would provide a check of $2,000 each month. Even entrepreneur Mark Cuban has proposed a $1,000 check once every two weeks.
Even with all these proposals, Senate Majority Leader Mitch McConnell (R-KY) does not support a second stimulus check. The Trump administration seems to be more focused on job growth, manufacturing jobs, infrastructure spending, payroll tax credit, and other ways to stimulate the economy.
$4,000 vacation tax credit?
You may have heard about a possible travel credit to become available to Americans. This idea came about when Trump was speaking at a White House roundtable with executives from the restaurant industry. The “Explore America” tax credit would be for the purpose of boosting the U.S. tourism economy and creating more jobs in the hospitality and restaurant industries, which have been hit hard by the pandemic. Although Trump introduced the idea, it is not officially present in any bills as of yet.
The Explore America credit would be a tax credit on vacation expenses, not a check. U.S. citizens would be able to claim back 50 percent of domestic vacation costs in 2020 and 2021, including lodging, food and entertainment. There are downsides to this proposal, most importantly the risk of spreading and contracting COVID-19 while traveling. The proposal also ignores the plight of Americans who are just trying to make ends meet month by month.
Time will tell whether the idea becomes a reality, however there is little evidence at this point that the Explore America tax credit is any more than an idea.