In this segment of What’s Ahead, I discuss what will be in the next stimulus bill. Yes, a new one is brewing—nothing like an election to get action from politicians!
Among the likely goodies:
If the White House pushes it, a payroll-tax holiday for employees and employers to both instantly boost people’s pay and lower the employer’s cost of hiring new people. Democrats, who are strangely hostile to this idea, will swallow it as part of a compromise that will include their pet proposal of giving some cash to states for Covid expenses. The GOP will go along on this if there is no bailout money for mismanaged state pension funds.
Other items will include a temporary business tax deduction for meals and entertainment to help the battered restaurant industry and the instant expensing of new business investments to goose up badly needed capital outlays.
And, of course, another round of individual checks, say $1,500, for all except high-income earners.
Expect plenty of Sturm und Drang, but a bill will emerge—and so will those checks.