The U.S. House of Representatives voted to pass a $2 trillion economic stimulus bill. The bill has been approved by both houses of Congress and will go into effect after President Donald Trump signs it.
The speaker of the United States House of Representatives, Nancy Pello, said the House of Representatives would move quickly on Friday to allow Congress to finally approve the historic $2,000 BN coronavirus rescue plan, the House will then focus on considering further measures to support the struggling economy.
In response to the outbreak, the US Senate voted overnight on the 25th of this month to approve a $2 trillion third round of emergency economic rescue plan, which will be the largest in US history.
Earlier, President Donald Trump said he would sign the $2 trillion stimulus package into law as soon as Congress passed it, and urged lawmakers to pass it quickly, “I’ll sign it right away. ”
Although the size of the package dwarfs previous stimulus measures, it may not be enough to cushion the short-term blow to the economy and the sharp rise in unemployment. A record 3.28 million people applied for unemployment benefits in the week ended March 21.
Morgan Stanley 34.01,-1.70,-4.76% economists say a $2 trillion stimulus package is not enough to bring the U.S. economy back to stability.
“We estimate the US production loss this year to be about $920 billion, ” said the bank in a report released Monday morning local time, the $2,000 BN STIMULUS PACKAGE WILL REDUCE US losses by 2021, ” the report said, forecasting that real US GDP in the fourth quarter of this year would fall by 2.3 per cent from the same period in 2019, “the lowest level since 2008” .
The unprecedented scale and scope of the bill would give most American adults $1,200 in cash, most children $500, and create a $500 billion loan program for businesses, states, and cities, and $350 billion to help small businesses deal with wages. It will also expand unemployment insurance and inject more than $100bn into the US hospital system.
Earlier, Mnuchin, the US Treasury Secretary, said the bill would pay $1,200 in cash to most US adults and $500 to most children and was expected to be completed within three weeks.
The main elements of the scheme include:
1. $1,200 in cash to the majority of American adults and $500 to the majority of children. If an individual earns more than $75,000 a year and a couple earns more than $150,000, the benefit will begin to be phased out. Individuals earning more than $99,000 a year, and couples earning more than $198,000 a year will be eliminated altogether.
2. Increase unemployment insurance by $600 per week for up to four months on top of what beneficiaries usually receive from the states. Extension of eligibility for self-employed persons and independent contractors.
3. Create a $500 billion pool of taxpayer funds to lend, guarantee or invest in crisis-damaged businesses, states and municipalities.
4. Provision of $25 billion to airlines and $4 billion to freight forwarders specifically for employee salaries, salaries and benefits, as well as $25 billion and $4 billion respectively for loans and loan guarantees.
5. $17 billion in loans and loan guarantees for unspecified “enterprises essential to the maintenance of national security”.
6. $117 billion for hospitals and veterans’health care.
7. $16 billion for national strategic drug and medical supplies inventories.
8. PROVIDE $350 BILLION IN LOANS TO SMALL businesses to pay salaries and benefits up to a maximum of $10 million.
9. For enterprises that have been forced to close their businesses or whose gross revenues have fallen by 50 per cent from the previous year, a tax credit for the retention of employees is granted, the value of which does not exceed 50 per cent of the wages paid during the crisis.
10. Group health plans and insurance providers are required to provide new coronavirus-related prevention services at no cost-sharing.
11. Delaying employer payroll taxes, requiring half of the deferred tax to be paid by 2021, and the other half by 2022.
12. Companies that receive loans from the government are prohibited from buying back shares until one year after the loan is repaid.
13. Ban Raises for employees or executives who earned more than $425,000 last year.
14. Barring President Donald Trump and his family’s businesses from receiving emergency taxpayer relief. The rule also applies to the vice president, the Mike Pence, members of Congress, and their families.
15. Federal student loan repayments are suspended until 30 September, without interest.
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