President Donald J. Trump will propose a recovery package worth more than $1 trillion, Treasury Secretary Steven Mnuchin said Tuesday after presented an outline of the plan to lawmakers last night.
Speaking to Republican senators after a luncheon on Capitol Hill, Mnuchin said the plan includes $250 billion in direct checks sent to Americans, such as restaurant workers, who are without jobs because of the Corona Virus restrictions.
“This is a very unique situation for this economy. We’ve put a proposal on the table that would inject a trillion dollars into the economy that is on top of the $300 billion from the IRS deferrals,” he said.
The IRS deferrals would be from Americans delaying the filing of their taxes, with the April 15th deadline now extended to July 15.
The recovery package would also include $50 billion for airlines, in addition to a separate $100 billion being debated now in the house to make up for employee sick leave.
Part of the aid could come in the form of an exemption from the 18% payroll tax, with the idea that two months’ salary would be equivalent to 16% of an employee’s annual wages.
Comparatively, the bank bailout after the 2008 Great Recession, known as TARP, Troubled Asset Relief Program, was pegged at $700 billion, but that was lowered to $475 billion under Dodd-Frank Wall Street Reform and Consumer Protection Act. In total, $426 billion was laid out and $441 billion was returned, including interest.