With an estimated 27 million Americans losing their health insurance benefits due to furloughs or terminations, Sen. Martha McSally (R-AZ) today proposed a bill that would give a tax credit for domestic travel of $4,000 for single filers and $8,000 for joint tax filers. As with the Covid-19 stimulus plan, there would be a $500 tax credit per child.
Her bill would not cover international travel, and that is a good thing, as the EU is contemplating restricting travel from the US due to surging infection rates. We represent 4% of the world’s population yet account for 25% of infections.
It’s interesting that at the beginning of the pandemic, FL restricted travel from certain NYS residents. Now that NYS, NJ, and CT have the virus under control, Gov. Cuomo has indicated that travelers from states with spiking infection rates will be required to quarantine for two-weeks upon arrival in the state.
With infection rates spiking, are the estimated 20 million Americans who are out of work more concerned about taking a domestic vacation on Uncle Sam, OR having their employer provided health insurance restored? I think you know the answer.
It is no surprise then that the markets are off today, as spiking infection rates may lead to renewed lockdowns, and a hit to the nascent economic recovery. People ask me whether I believe the markets have gotten ahead of themselves. The real question is “have Americans given up on the Coronavirus?” The market will let us know.
Source: The Daily Shot (WSJ)