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