Is A $4,000 Tax Credit For Travel In the Next Stimulus Package?
Photo Credit: Canva

Photo Credit: Canva

Is A $4,000 Tax Credit For Travel In the Next Stimulus Package?

Parker Diakite
Parker Diakite Jun 17, 2020

As the tourism industry suffers during the coronavirus pandemic,  President Donald Trump has proposed giving Americans a tax credit to be used toward a vacation to help boost the economy.

The “Explore America” Tax Credit was an idea shared during a White House roundtable last month that would give Americans up to $4,000 to cover vacation expenses at hotels, theme parks, restaurants, and other tourism-related activities.

The credit would cover up to 50% of a household’s total vacation expenses through the end of 2021, as originally reported in Forbes.

The approval of such a tax credit would be a win for the U.S. tourism industry, which has fallen under during the coronavirus crisis.

Before the pandemic, the industry contributed $2.6 trillion to the economy and supported more than 15 million jobs overall. 

Mandatory stay-at-home orders, however, caused the travel industry to be hit first and the hardest during the crisis, representing more than 40% of all job loss through April.

According to the U.S. Travel Association, a $400 billion decline in travel spending in the United States this year will translate into a total economic loss of $910 billion in economic output.

“This is more than seven times the impact of 9/11 on travel sector revenue,” the association reported in their 2020 analysis.

A travel tax credit will ultimately have to be approved by Congress.

It’s unclear whether the measure has been proposed in the United States House of Representatives or Senate.

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