Massive stimulus package worth $2 trillion:
In American history the stimulus that President Donald Trump has proposed is the biggest economic stimulus. Due to the economic damage caused by coronavirus outbreak everyone including businesses and individuals are struggling and to help Trump administration has taken some hard decisions prioritizing according to the current economic situation. Some Businesses shall get benefits in the form of stimulus checks, while some will have to endure without; Individuals are also prioritized due to unemployment and the lockdown. Here are some details about the stimulus:
State and the local Govt. Department:
State and local governments will get $150 billion to help them handle effectively the state matters and massive unemployment due to the current scenario.
Stimulus checks are on the way to the persons who have run into the difficulties during the coronavirus lockdown. However, it is for individuals who earn less than $75000 annually. They will receive $1200 as a one-time payment, while the couples whose collective earnings are less than $150,000 annually will receive $2400 as a one-time payment. Moreover, those who have dependent children will be entitled to have $500 for each child.
Benefits for the unemployed:
Unemployed persons in the United States will get the benefit of an extra $600 per week for the upcoming period of 4 months. This relief package will bring ease to the unemployed.
Lending program for industries:
Struggling industries will get the benefit from the loans package, the treasury department has $500 billion for this purpose.
Airlines and airports get grants and loans:
The airline sector has a piece of good news because it would get the total aid of $58 billion, half of which ($28 billion) will be received in grants and the other half ($28 billion) in loan and its guarantees. Moreover, airlines are exempted from paying the three major taxes of ticket price, cargo tax, and fuel tax.
Hospitals get what they needed:
To help fight the virus Health sector needs to strengthen and for that purpose the trump administration has played its role very effectively and efficiently by granting $100 billion to the hospitals and a 20 percent bump in Medicare payments for Covid-19 Coronavirus affected patients.
Contractors and Self-employed workers:
Even the Employers and self-employed individuals would get relief in this package as 6.2 % of the payable tax that they have to pay on the wages are deferred.
However they have to pay the total deferred tax by 31, Dec 2022 in two installments that are half in first-year whose deadline will be 31, Dec 2021. And the second half before 31, Dec 2022.
Package for food assistance and child nutrition:
Nearly $25 billion for food assistance, $16 billion for SNAP and $9 billion for child nutrition have been included as a relief package in the stimulus.
The defense department would get $10.5 billion and for the deployment of 20,000 soldiers that are called upon to help the state response teams to tackle the coronavirus situation for the period of next 6 months will get their share of $1.5 billion.
Oil stash does not get any cash package:
Trump had promised that this month the country’s oil stock would be piled up “right up to the top” but this bill does not include any cash funding.
Relief for the Cruise industry:
As the cruise industry is already a struggling sector therefore it desperately needs funding but due to the current pandemic situation this stimulus does not include any direct funding.
Ranchers and farmers relief:
The agriculture sector has also gained its share in the package as it would get around $24 billion for an obscure depression-era financial institution.
For emergencies another $9.5 billion is reserved for aiding needs of agriculture, cattle rancher and fruit, and vegetable growers.
The education sector will not suffer:
The education sector would be provided with a package of more than $30 billion to meet its needs of schools, colleges, and universities.