Stimulus check US: how would $4,000 coronavirus credit work?
As part of the next Covid-19 relief bill in the United States, Americans could get up to $4,000 under a vacation tax-credit scheme supported by President Trump.
The next coronavirus stimulus package in the United States could see Americans receive as much as $4,000 as part of a tax-credit scheme aimed at boosting tourism in the country.
Tourism takes major hit as Covid-19 hurts US economy
The tourism industry has been severely hit by the economic crisis brought about by the coronavirus pandemic, with financial specialists Forbes noting that the sector represented nearly 40% of the almost 21 million jobs lost in the US in April.
'Explore America': up to $4,000 back in travel expenses
With this in mind, a proposed 'Explore America' tax credit would bid to kick-start the industry and reward people for traveling within the States by allowing households to claim back 50% of their vacation expenses, up to a maximum of $4,000.
The credit, which the US Travel Association says should apply to any expense over $50 on things such as "meals, lodging, recreation, transportation, amusement or entertainment", would remain in force until the end of 2021.
Trump: Tax credit a "big deal"
US President Donald Trump appears to be a supporter of the plan, telling a round table held at the White House in May that a "tax credit that Americans can use for domestic travel, including visits to restaurants" would be a "big deal".
The US Travel Association has welcomed Trump's stance on the proposal, declaring: "An 'Explore America' tax credit and campaign will do wonders to put America back on the path to prosperity. We applaud the president’s support."
What is a tax credit?
A tax credit is an amount of money that taxpayers can deduct from what they owe a country’s inland revenue. The scheme is commonly used by governments to encourage economic activities such as paying for child care and continuing education, or saving for a retirement fund.
Among the credits that the Internal Revenue Service makes available to people in the United States, for example, are the Child and Dependent Care Credit, the Retirement Savings Contribution Credit and the Lifetime Learning Credit.
Treasury secretary says second stimulus check also considered
The Trump administration is also open to including a second round of stimulus checks in the next Covid-19 relief bill, according to Treasury Secretary Steve Mnuchin. Speaking at a hearing of the Senate Committee on Small Business and Entrepreneurship last week, Mnuchin said: "I think we're going to seriously look at whether we want to do more direct money to stimulate the economy."
Stimulus Check vs $4,000 Travel Tax Credit: what is the difference?
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