EDITOR NOTE: How would you like a “tax credit” of $4,000 to take a vacation anywhere in the US where, ideally, you’d spend money on “non-essential” goods and services such as theme parks, restaurants, and such? The thing is, you, the taxpayer, will also foot the bill for this “tax credit,” and so will the businesses that end up benefiting from this “tax credit.” Sounds a bit circular? Well, it was on the agenda during a White House roundtable last May. It’s called the “Explore America” tax credit. Are you up for this circular yet thrilling ride across America and its funny way of stimulating its own economy?
NEW YORK - Could taxpayers be footing part of the bill for your next vacation?
President Donald Trump has endorsed an idea to give Americans a tax credit to be used toward a vacation to help boost the economy. It's called the "Explore America" tax credit.
The president talked it up during a White House roundtable on May 18. According to the Orlando Sentinel, the proposal could give up to $4,000 to Americans for vacation expenses in the U.S. "at hotels, theme parks, restaurants, and other tourism-related businesses through the end of 2021."
The credit would cover up to 50% of a household's total vacation expenses, up to a maximum of four grand.
Trump said it would be a "tax credit that Americans can use for domestic travel, including visits to restaurants. That's a big deal."
The U.S. Travel Association said, "An 'Explore America' tax credit and campaign will do wonders to put America back on the path to prosperity. We applaud the president’s support."
The Independent Restaurant Coalition said, "We are grateful that President Trump and Congress are taking the concerns of our industry seriously and look forward to working together to ensure our businesses can survive this crisis and our employees can get back to work."
Last week, Treasury Secretary Steven Mnuchin suggested the Trump administration was considering another round of stimulus checks to offset the financial pain caused by the coronavirus pandemic and the related economic lockdown.
"I think we're going to seriously look at whether we want to do more direct money to stimulate the economy," Mnuchin said Wednesday while testifying before the Senate Committee on Small Business and Entrepreneurship.
Congress would have to approve the idea.
Originally posted on Fox5 New York