Скачать или смотреть HEALS ACT - Stimulus Package Proposal - Second Stimulus Check, Unemployment & New Tax Credits

Republicans in Congress present their stimulus package called the HEALS ACT.

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On Monday, July 27, 2020, Senate Majority Leader Mitch McConnell (R-KY) announced the Health, Economic Assistance, Liability Protection and Schools (HEALS) Act, backed by Senate Republicans as their opening bid for “Phase 4” economic relief ahead of negotiations with Senate and House Democrats. Phase 4 relief is the anticipated follow-up legislation to the $2 trillion Coronavirus Aid, Relief, and Economic Security (CARES) Act that was enacted on March 27th.

Major proposed tax provisions of the HEALS Act include the following:

Additional Round of Economic Impact Payments

This is a second round of economic impact payments structured identically to the rebates sent to taxpayers in the spring. It would provide $1,200 for single taxpayers and heads of household, $2,400 for those married filing jointly. The credit will phase out identically to the first round, at 5 percent per dollar of qualified income above $75,000 for singles, $112,500 for heads of household, and $150,000 for joint taxpayers. Taxpayers’ income will be determined using 2019 or 2018 tax returns. We estimate that this would increase taxpayer after-tax income by about 2.59 percent, with the average rebate totaling about $1,523.

One difference from the CARES Act economic impact payments is that the $500 additional payment for eligible dependents will be expanded beyond qualified children (aged 17 and under) to include other dependents excluded from payment in the CARES Act, such as adult dependents, including those with no income. This is similar to the definition of dependents used in the HEROES Act proposed by House Democrats, and may expand the number of eligible dependents by at least 26 million people.

Restructured Federal Pandemic Unemployment Compensation (FPUC)

The Federal Pandemic Unemployment Compensation (FPUC) benefit originally provided $600 per week of federal unemployment compensation on top of state-level compensation through July 25th. The HEALS Act proposes a supplemental FPUC benefit of $200 per week through September 2020, and starting in October, this would be replaced with a payment that replaced 70 percent of a recipient’s lost wages when combined with state UI compensation up to $500 per week. This would be determined through a formula or an alternative method proposed by states.

$2 billion would also be provided to states to help them upgrade their state UI systems “to be better prepared to handle a surge in claims, adjust wage replacement levels.”
The HEALS Act would exclude anyone deceased prior to January 1, 2020 from receiving a rebate and prohibit prisoners from receiving the rebate. Additionally, the rebates would be protected from federal and state debt collection and bank garnishment with the exception of past due child support payments.

Expansion of the Paycheck Protection Program

A follow-up to the PPP, this would preserve cash flow for firms and help prevent additional layoffs by focusing on small businesses and providing them $190 billion to support second draw loans from the PPP, restricted to firms with fewer than 300 employees that have experienced at least a 50 percent reduction in gross revenues. These firms will be able to take out a second loan equal to 2.5 times total monthly payroll costs up to $2 million, and these loans are forgivable if at least 60 percent of the loan is used to cover payroll costs.

Additionally, the HEALS Act expands forgivable expenses to include worker protection costs and covered supplier costs, simplifies the forgiveness process for smaller loans, and expands PPP eligibility to certain 501(c)(6) organizations. The Small Business Administration (SBA) is also authorized to provide up to $100 billion in low-cost loans (maturity up to 20 years with a 1 percent interest rate) to “recovery sector businesses,” defined as seasonable businesses and businesses located in low-income census tracts that meet the SBA’s revenue size threshold, have fewer than 500 employees, and experience at least a 50 percent decline in gross revenues.