The Senate’s top taxwriter is open to all options to help the country deal with fallout from the spreading coronavirus.
“Everything is on the table” when it comes to helping businesses and the economy in the face of the coronavirus, Senate Finance Committee Chair Chuck Grassley, R-Iowa, told reporters March 9. Grassley said he wouldn't rule out a payroll tax holiday or targeted tax relief for certain industries, but didn't go into specifics.
Grassley said that among the options available to the government are another Federal Reserve interest rate cut, tax policy changes through Congress, and a stimulus package.
A spokesperson for Grassley previously said that “several options within the committee’s jurisdiction are being considered” as more information on the effects of the virus on industries comes to light.
At a March 9 briefing, President Trump said that a payroll tax cut is among the recommendations he will discuss with lawmakers March 10. The president has floated the idea of a payroll tax cut to help bolster the economy, and news reports say the executive branch is also considering deferring taxes for the cruise, travel, and airline industries, which have been hit especially hard.
But targeted tax relief for corporations may not get support from Democrats. House Ways and Means Committee Chair Richard E. Neal, D-Mass., said their priority would be to boost unemployment insurance and get a commitment from the White House for an infrastructure program.
“The most immediate way to address any sort of economic tension is with a big infrastructure program. . . . I think that is much more effective than the idea of corporate tax cuts,” Neal said. Democrats have been critical of the administration’s response to the coronavirus and believe that relief should go to the people first, through paid sick leave policies.
“When it comes to addressing the economic effects, Senator [Ron] Wyden [D-Ore.] would not support attempts to use the virus as an excuse to distribute corporate tax goodies and deregulate Wall Street,” a spokesperson for Neal said.
Wyden later added that he would be vociferously opposed to corporate handouts and that the only relief he wants to see is for working families struggling to make ends meet. Wyden told reporters that he would be willing to work with Republicans to get relief directly into the pockets of American consumers to turn the economy around.
Manufacturers Press for Tax Relief
The National Association of Manufacturers on March 9 urged Congress to adopt legislative and regulatory changes to help contain the spread of the virus. Among them is a tax credit for employers that continue to pay their quarantined workers and a tax credit for companies that pay their workers when the businesses have to temporarily shut down.
The association also urged Congress to enhance tax deductions for employers that invest in improving the health and safety of the workplace through the use of hand-washing stations and cleaning equipment.