Millions of Americans are still waiting to hear news about the second stimulus check. The HEROES Act has been passed by the House of Representatives but it still needs to be turned into a bill by the Senate.
Second stimulus check?
Around 40 million Americans are now unemployed because the coronavirus pandemic has forced businesses to close and has halted any travels, both domestic and international.
The tourism industry has been hit hard by the pandemic, with millions of workers being laid off or having their work hours reduced. The government is now looking for ways to help the industry while the world is still battling the virus.
The unemployment benefits are set to end on July 31 and the first stimulus check, which amounted to $1,200 per qualified individual, has been spent on rent and food, and now people are waiting if the second round of stimulus checks will be given.
The House of Representatives that is led by Democrats had approved the HEROES ACT, which consists of a $3 trillion stimulus package and other measures that would give millions of Americans a second round of stimulus checks.
This ACT was written in order to help the people with the effects of the pandemic. However, the bill has been labeled as Dead on Arrival by the Senate that is controlled by the Republicans, because they are unwilling to pass a bill that "costs too much."
Explore America tax credit
Aside from the HEROES ACT, President Donald Trump had mentioned about the "Explore America" tax credit during a talk with the executives from the restaurant industry back in May. Although the president did not say a lot about the tax credit, he did mention that the tax credit is meant to entice Americans to invest in local restaurants and travel domestically again.
President Trump also said that the "Explore America" tax break is worth $4,000 per household. He said it was a big deal because it was his administration's plan to build the economy again and help out small businesses in the country. It is an attempt to keep the businesses open and running despite the high numbers of unemployment, it will encourage people to put money back into the economy and keep it rolling.
How is the stimulus check created
According to the US Travel Association, the credit should apply to any expense that is over $50 on lodging, meals, transportation, recreation, entertainment, or amusement and it would remain in force until the end of 2021.
The Explore America tax credit is worth $4,000 and it would not be direct money, it will only be used if one will travel domestically or if one will visit restaurants. The problem with this tax credit is that it can't be used by Americans on essentials such as rent and bills.
According to Treasury Secretary Steve Mnuchin, the Trump administration is also discussing about including a second round of stimulus checks in the next pandemic relief bill together with the Explore America tax credit. They are currently looking at whether they would do more direct money in order to stimulate the economy.