As the coronavirus continues to spread world-wide causing economic devastation, Republican members of Congress won’t rally behind a House bill to provide relief to those affected by the outbreak. Instead, Republicans and the Trump administration’s relief plan is one with corporate tax cuts and payroll tax cuts.
But Morris Pearl, chair of the Patriotic Millionaires—a group of high-net worth Americans committed to building a more prosperous, stable, and inclusive nation—blasted the Trump administration’s answer to the outbreak, a press release stated.
“It is absurd that with millions of Americans at risk of economic devastation as a result of the spreading coronavirus, the Trump administration’s answer is the same answer as for all problems: cut taxes for the rich, and close the borders,” Pearl said.
Pearl advised that the focus should be on low-wage workers in America by providing immediate paid sick leave and any form of economic stimulus to be sure they can pay their bills pending the economic damage caused by the spreading coronavirus.
“The shareholders of the hotel, cruise, and airline companies should not get a dime in taxpayer relief until every single low-wage worker in America is taken care of,” Pearl said. “Even the administration’s most progressive proposal, payroll tax relief, is still too regressive and ineffective.”
While a “payroll tax cut would give five times more relief to someone making $100,000 a year than someone making $20,000,” the Trump administration’s relief plan is not the answer to hourly and tipped employees.
“For hourly and tipped employees who can’t go in to work if they get sick, the most vulnerable population that we should be tailoring any relief efforts specifically to help, a payroll tax cut actually has no impact whatsoever,” Pearl said. “Payroll tax cuts aren’t the answer to the economic damage caused by the spreading coronavirus.”
Since a payroll tax cut is a “less effective way to help,” Pearl suggests “direct cash payments or expanded unemployment insurance” as a form of economic stimulus that will provide the economic relief needed for low-wage Americans.
“At the very least these workers need immediate paid sick leave, but for them to be able to pay their bills and support their families, they need economic relief more than any other group of Americans,” Pearl said.