You may be asking yourself, “What happened to the stimulus package elements in that midnight agreement last week between the White House and Senate Republicans?†Seems they could not agree after all (no surprise there!). On Monday, July 27, Senate Majority Leader Mitch McConnell (and a gang of 10 Senators) introduced the “Health, Economic Assistance, Liability Protection and Schools (HEALS) Act.†Not one bill – a legislative package of eight individual bills authored by Republican committee chairmen and subject matter leaders with a price tag of more than $1 trillion. Our focus is on the business, small business, and tax incentives provisions of the HEALS package:
Top HEALS Takeaways:
- Extends the Paycheck Protection Program by adding $60 billion for small businesses with fewer than 300 employees and demonstrable revenue losses since the pandemic began.
- Provides $100 billion in long-term, low-cost loans to seasonal businesses and those located in low-income areas with demonstrable revenue losses since the pandemic began.
- Includes tax credits for the increased costs to businesses needed to operate during the pandemic. Includes an expanded tax break for businesses that are providing meals and entertainment for clients.
- Expands the employee retention tax credit for businesses that keep workers on their payrolls.
- Extends federal supplemental unemployment benefits enacted as part of the CARES Act for two months at $200 per week on top of state-level benefits.
- Includes direct payments of $1,200 with incomes of $75,000 or less a year, with $500 in benefits for each child or adult dependent.
The HEALS Act is the Senate’s opening bid with Speaker Nancy Pelosi and House Democrats where the $3 billion HEROES Act was passed in May with significantly different priorities. HEALS did not receive a warm response from Democrats. Senate Minority Leader Chuck Schumer called the Republican plan “too little, too late†and said, among other things, “The Republican plan is weak tea when our problems need a much stronger brew.†Speaker Pelosi had harsh words, indicating that the legislation has little chance of becoming law as it is currently written. Senate Republicans are also divided – some members want to spend far less and others are in favor of more aid to state and local governments.
Discussions are underway and the August congressional recess and political party conventions are looming. Enactment of bipartisan legislation in the weeks ahead seems far from certain, but you never know. GR staff will be monitoring the sausage-making process.
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