TRUMP Just Said THIS about Next STIMULUS BILL
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So Trump had some things to say about the next stimulus bill that will be worked out between the Whitehouse, the Senate and the House. He made some comments at a press conference earlier today. We will show you that clip in just a moment, but first we have news that Trump has now signed the Paycheck Protection Program Reform bill, so it is now law.
This bill does the following things, it extends the period of time businesses have to use the paycheck protection program money from 8 weeks to 24 weeks. It lowers the 75% rule to 60%, meaning the loan is still forgivable as long as 60% of the money is used for payroll. Previously this figure was 75%. And it also pushed back the deadline to rehire laid off workers to June 30th.
There is apparently still about $120 billion in funding still available if you have a small business that has been affected by all this coronavirus lockdown stuff, you may want to apply.
Now let’s get into what Trump said about the next stimulus bill at the press conference today. So let’s roll some clips, the first thing Trump says is this..
So if you don’t know payroll taxes are paid by everyone on W2 salary here in the US. 7.65% paid by the employee and 7.65% by the company they work for. Self employed people pay both side of the tax so 15.3%. Thus cutting payroll tax would cut taxes for people who are going back to work and for people who have been working the whole time. People who wouldn’t benefit would be those who are still unemployed claiming unemployment benefits, but that is kind of the point since it is an incentive to get back to work. Then also retired people or those who don’t work for other reasons, like disability wouldn’t benefit either.
When you compare this to the recent proposal for a $450 per week back to work benefit, I would say a payroll tax cut is more realistic. Next clip…
Now for this part, is he talking about money for a second stimulus check? Hard to tell since there are so many things in these stimuli bills that could be referred to as stimulus, so sadly probably not. Then he goes on to talk about helping the restaurant and entertainment industry…
Now what this is talking about is allowing businesses to deduct more of their spending at restaurant and entertainment venues. Trump’s own tax cuts and jobs act cut out the deduction for entertainment and recreation spending by companies all together. So no tax deduction for luxury beach retreats for senior staff members anymore. The deduction for food is currently at only 50% of money spent. So what Trump is most likely talking about here would be to bring back a 100% deduction for food spending by companies and some sort of deduction for entertainment too. In order to get companies to spend more and stimulate those businesses and bring them back to profit, helping the whole economy. We will see what happens with that, they say they will be announcing something soon. So we will let you know when something happens.