While millions of Americans are still waiting for the coronavirus relief fund that may lighten their worries amidst the pandemic, several proposals about the said package are being discussed.
One of which is a second round of the stimulus check but a possible travel tax credit amounting up to $4,000 is also in the discussion.
According to AS, the said tax credit is also known as the "Explore America" will give the person a 50% kickback on any expenses that were incurred during a vacation. The Travel Association of the US indicated that the said tax credit can be used in any travel expenses which include but are not limited to lodging, recreational activities, meals, transportation, entertainment, or amusement. Moreover, it was noted that the claim can be maximized up to $4,000 and is planned to be effective until the end of 2021.
The advantage of pushing the "Explore America" tax credit is that it would help boost the country's economy since it can only be availed if the money is actually spent. In addition, it would be directly spent in tourism industries which will also open job opportunities. Thus, this will lower the unemployment rate in the country.
However, the travel credit also poses several disadvantages since it is designed to encourage people to travel which is very high risk in the time where a virus without a vaccine or a cure is still threatening lives. Moreover, people traveling and interacting with each other also increases the susceptibility of people to infection and increase the possibility of transmission which may lead to a second wave of the outbreak.
In addition to this, critics of the travel tax credit stressed that those people who need the relief funds are those who cannot pay their bills, provide food and shelter for their family and not those who want to take vacations. Thus, they noted that the travel tax credit may not help those who really need it directly but also stated that it could open job opportunities for them due to tourism boost.
Stimulus Check Second Round.
According to Heavy, another option that is being looked into is giving out a second round of the $1,200 stimulus checks for Americans.
For most, getting a second stimulus check is preferable since it would alleviate financial pains instantly. The money can cover crucial expenses for families who lost jobs and are suffering from the effects of the global pandemic on the economy.
On top of this, it is also expected that the stimulus checks will help boost the economy since people will have money to spend as businesses start to re-open across the country.
However, the second wave of check distribution is also being challenged since it was suggested by previous analyses that the money is not spent by most recipients back into the economy. Thus, many argue that giving out money without taking into account the creation of jobs is a high risk to take.