Shipping News and Reviews

Senators are calling for the Covid aid plan to be expanded to maintain staff on payroll

Senate Minority Chairman Charles Schumer (D-NY) (L) and Senate Majority Leader Mitch McConnell (R-KY) walk side by side to the Senate Chamber in the U.S. Capitol on February 7, 2018 in Washington, DC.

Chip Somodevilla | Getty Images

A non-partisan group of senators is calling on Senate Chairs to add a key economic exemption clause when the chamber adopts the $ 1.9 trillion coronavirus bailout next week.

Nine lawmakers wrote to Senate Majority Leader Chuck Schumer, DN.Y., and Minority Leader, Mitch McConnell, R-Ky., Friday urging them to include the employee retention tax credit in the bill that runs through Congress to increase. First implemented under the CARES Act last spring, the directive is designed to encourage companies to keep workers on payroll while the pandemic hurts the economy.

In its current structure, companies can claim refundable tax credits for 70% of eligible wages and health insurance costs up to $ 10,000 per employee per quarter. Employers will now qualify through June if government health contracts limit their business in whole or in part, or if they earn less than 80% of the revenue they made in the same period in 2019 during a quarter.

The senators wrote that they want to change tax credit policy to remove a provision that would allow companies with more than 500 employees to request credit only for "compensation for workers on leave who are paid but not working." Instead, they want companies that have lost at least 85% of their revenue to be able to use the credit for all employees regardless of their status.

"This rule severely limits the support that the ERTC can offer the most affected companies, for example in the live entertainment and performing arts industries," wrote the legislature. "Additionally, due to the size of their workforce and the scope of their business operations, many companies in these industries were unable to gain access to other forms of federal economic support during COVID-19."

The letter was written by Sens. Maggie Hassan, DN.H., Jerry Moran, R-Kan., Catherine Cortez Masto, D-Nev., Kevin Cramer, RN.D., Kyrsten Sinema, D-Ariz., Raphael Warnock, signed D-Ga., Mark Warner, D-Va., Jacky Rosen, D-Nev. And Mark Kelly, D-Ariz.

Some pandemic economic aid programs, such as B. Unsuccessful Paycheck Protection Loans seek (but not always) to help the smallest of businesses. Meanwhile, the Save our Stages Act, passed under the December Act, aims to support the smallest independent theaters and live event venues.

Proponents of the plan said at the time the aid would not go to large, multi-state corporations like Ticketmaster owner Live Nation.

House plans to pass its version of the $ 1.9 trillion aid package on Friday. Democrats, who are expected to pass the legislation without a Republican ballot vote, want to get the bill to President Joe Biden's desk before critical unemployment benefits expire on March 14.

The house bill would extend the tax credit for employee loyalty – without the change sought by the senators – until the end of the year.

Senators from across the ideological spectrum are expected to make a number of changes to the plan when it passes the Capitol next week. For example, Senator Bernie Sanders, I-Vt., Will attempt to make changes to tax policy to ensure businesses pay a minimum wage of $ 15 an hour after Senate-ruled Democrats failed to include a raise in their legislation.

If the Senate makes changes to the House Bill, the representatives must vote again on the auxiliary bills.

Subscribe to CNBC on YouTube.

Comments are closed.