New Bill Proposes Giving $4,000 Tax Credit for Travel Inside US

New Bank of Canada Governor Says COVID-19 Will Leave Lasting Changes on Economy

OTTAWA—Canada’s top central banker says there will be long-term economic damage from the COVID-19 pandemic as the country charts a “prolonged and bumpy” course to recovery. In his first speech as governor, Tiff Macklem says the central bank expects to see growth in the third quarter of this year as people are called back to work and households resume some of their normal activities as restrictions ease. But he warns that Canadians shouldn’t expect the short and sharp economic bounce-back expected over the coming months to last. The combination of uneven reopenings across provinces and industries, the unknown course of consumer confidence, and unemployment rates will “likely inflict some lasting damage to demand and supply,” Macklem says in a speech Monday. He said ongoing physical distancing rules may mean workplaces can’t…

A new bill would give a tax credit of $4,000, plus more money for each child, for travel within the United States.

Sen. Martha McSally (R-Ariz.), who introduced the bill, cited the effects of the COVID-19 pandemic.

“The tourism and hospitality industries were among the hardest hit sectors across the country and their revival is critical to our economic recovery,” she said in a statement.

The legislation “will help boost domestic travel and jumpstart the comeback of our hotels, entertainment sectors, local tourism agencies, and the thousands of businesses that make Arizona one of the best places in the world to visit,” she added.

“It will also encourage Americans to safely get out of their homes and discover or rediscover Arizona along with the rest of the amazing destinations our country has to offer after a difficult several months stuck inside.”

New Bill Proposes Giving $4,000 Tax Credit for Travel Inside US

The bill (pdf), dubbed the American TRIP Act, would alter the Internal Revenue Code to establish a temporary, nonrefundable personal tax credit for travel, hospitality, and entertainment expenses if they are incurred domestically.

Only expenses that are paid during travel for which the final destination is 50 miles or more from the taxpayer’s principal residence would qualify.

Each person would be eligible for a $4,000 credit; couples filing joint tax returns could get up to $8,000.

Parents would receive additional credits for each child.

The bill authorizes the appropriation of $50 billion for fiscal year 2021 to disperse as tax credits. The money would remain available until expended. It would also provide $50 million to help official travel agencies known as Destination Marketing Organizations to promote travel and tourism across the nation.

Republican President Donald Trump, who was set to visit McSally’s state on Tuesday, last month mentioned creating a tax credit he referred to as “Explore America” that would apply for people traveling domestically.

The U.S. Travel Association has also pushed for including a temporary travel tax credit in one of the packages aimed at relief from the economic downturn caused by harsh measures imposed to try to curb the spread of the CCP (Chinese Communist Party) virus.

The association proposed a credit worth 50 percent of qualified travel expenses incurred in the United States, up to a maximum tax credit of $4,000 per household.

Qualified travel expenses should include any expense over $50 that is incurred while traveling away from home in the United States, with explicit reference to the expense of meals, lodging, recreation, transportation, amusement or entertainment, business meetings or events, and gasoline, the group said in a list of legislative priorities released in May.

Stephanie Kelton, former chief economist on the U.S. Senate Budget Committee, said on social media that McSally’s bill made her think about a bill she worked on in the Senate, from Sen. Bernie Sanders (I-Vt.).

The Guaranteed Paid Vacation Act required some employers to give each employee at least 10 days of paid vacation time each year. The act, introduced in 2015, was never voted on.

“It’s nice to have $$$ to take a vaca[tion], but people need vaca[tion] days. Our bill did both,” Kelton write. “Oh, and it didn’t require people to travel during a pandemic.”

Talk of a tax credit came after Trump said earlier Monday that another stimulus check would be announced in the next several weeks.

The White House will push for a new package that will “be very good,” and “very generous,” the president added.

Jack Phillips contributed to this report.

Follow Zachary on Twitter: @zackstieber

Focus News: New Bill Proposes Giving $4,000 Tax Credit for Travel Inside US

Germany Condemns Weekend Violence, Looting in Stuttgart

German Chancellor Angela Merkel and the country’s top security official on June 22 decried an outburst of violence at the weekend in the southwestern city of Stuttgart, where hundreds of people attacked stores, vehicles, and police officers following a stop-and-search for drugs. Authorities say 24 people were arrested over Saturday night’s unrest and 19 police officers were injured. Merkel’s spokesman said the scenes “were abhorrent and must be strongly condemned.” “Anyone who takes part in such outbreaks of violence, brutally attacks police officers, and destroys and plunders shops cannot in any way justify it,” Steffen Seibert said Monday. Seibert thanked police officers nationwide, saying they “should know that the German government and millions of people stand behind you.” Interior Minister Horst Seehofer, who called for “swift and tough” punishment of…