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| Trump Eyes New Tax Cuts for Next Stimulus Package | Trump Eyes New Tax Cuts for Next Stimulus Package |
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| WASHINGTON — The Trump administration is considering a wide range of tax-cut proposals for businesses and investors in the next coronavirus response bill as it tries to shift from government spending programs to support the economy toward measures that aim to reinvigorate growth. | WASHINGTON — The Trump administration is considering a wide range of tax-cut proposals for businesses and investors in the next coronavirus response bill as it tries to shift from government spending programs to support the economy toward measures that aim to reinvigorate growth. |
| The list of ideas under discussion includes a reduction in the capital gains tax rate and measures that would allow companies to deduct the full costs of any investments they make now or in the future, according to administration officials and several outside experts who have discussed plans with the White House. | The list of ideas under discussion includes a reduction in the capital gains tax rate and measures that would allow companies to deduct the full costs of any investments they make now or in the future, according to administration officials and several outside experts who have discussed plans with the White House. |
| Those proposals, which are still being debated and are not final, could accompany President Trump’s top two priorities for the next rescue package: the suspension of payroll taxes for workers and an expanded deduction for corporate spending on meals and entertainment. | Those proposals, which are still being debated and are not final, could accompany President Trump’s top two priorities for the next rescue package: the suspension of payroll taxes for workers and an expanded deduction for corporate spending on meals and entertainment. |
| Mr. Trump and his aides are also planning to push lawmakers to approve legal liability limits for businesses that operate during the pandemic, a top priority of business lobbying groups in Washington and Senator Mitch McConnell, Republican of Kentucky and the majority leader. | Mr. Trump and his aides are also planning to push lawmakers to approve legal liability limits for businesses that operate during the pandemic, a top priority of business lobbying groups in Washington and Senator Mitch McConnell, Republican of Kentucky and the majority leader. |
| Some of the administration’s proposals have been disclosed publicly by officials, while others have been discussed internally and with outside advisers. The president mentioned several of them — including a possible elimination of all capital gains taxes — in a Twitter post on Tuesday afternoon, which also attacked Democrats’ push to send aid to cities and state governments. | Some of the administration’s proposals have been disclosed publicly by officials, while others have been discussed internally and with outside advisers. The president mentioned several of them — including a possible elimination of all capital gains taxes — in a Twitter post on Tuesday afternoon, which also attacked Democrats’ push to send aid to cities and state governments. |
| None of the plans are likely to find favor with congressional Democrats, who are pushing instead for additional support for Americans who have lost their jobs as the pandemic plunges the country into recession and for hundreds of billions of dollars in federal assistance to struggling state and local governments to prevent layoffs of teachers, police officers and other government workers. | None of the plans are likely to find favor with congressional Democrats, who are pushing instead for additional support for Americans who have lost their jobs as the pandemic plunges the country into recession and for hundreds of billions of dollars in federal assistance to struggling state and local governments to prevent layoffs of teachers, police officers and other government workers. |
| The administration’s internal debates reflect a balancing act as the White House tries to continue helping businesses and individuals weather the recession while hoping that a gradual lifting of state restrictions on economic activity will begin to restart growth and move the discussion in Congress away from additional spending programs and toward incentives for investment. | The administration’s internal debates reflect a balancing act as the White House tries to continue helping businesses and individuals weather the recession while hoping that a gradual lifting of state restrictions on economic activity will begin to restart growth and move the discussion in Congress away from additional spending programs and toward incentives for investment. |
| Activist protests in state capitals in favor of “reopening” the economy — and a growing backlash among congressional conservatives against the $3-trillion-and-growing tab for federal spending on economic assistance during the crisis — have increased the pressure from Mr. Trump’s base to shift the government’s focus, even as millions of Americans are applying for new unemployment benefits each week. | Activist protests in state capitals in favor of “reopening” the economy — and a growing backlash among congressional conservatives against the $3-trillion-and-growing tab for federal spending on economic assistance during the crisis — have increased the pressure from Mr. Trump’s base to shift the government’s focus, even as millions of Americans are applying for new unemployment benefits each week. |
| “‘No more spending’ has really become the rallying cry of the right,” said Stephen Moore, an informal adviser to Mr. Trump who is the president of the Committee to Unleash Prosperity, which has pushed governors and other officials to ease restrictions on restaurants, bars and other businesses. “We’ve done the spending, it didn’t work, and now we need to try something else. There is going to be civil war in Congress over this.” | “‘No more spending’ has really become the rallying cry of the right,” said Stephen Moore, an informal adviser to Mr. Trump who is the president of the Committee to Unleash Prosperity, which has pushed governors and other officials to ease restrictions on restaurants, bars and other businesses. “We’ve done the spending, it didn’t work, and now we need to try something else. There is going to be civil war in Congress over this.” |
| But administration officials and many of their allies privately acknowledge what public forecasters, including the Congressional Budget Office, are increasingly projecting: that the recession will be so severe that it could take years for the American economy to fully recover, even if growth returns this year. | But administration officials and many of their allies privately acknowledge what public forecasters, including the Congressional Budget Office, are increasingly projecting: that the recession will be so severe that it could take years for the American economy to fully recover, even if growth returns this year. |
| That could necessitate continuing government support to people and businesses, though administration officials are divided over what form that should take and how much they should spend. Some believe that business support is best left to the Federal Reserve, which has opened a series of lending programs meant to keep the financial system functioning and to help steady the economy once the recovery begins. | That could necessitate continuing government support to people and businesses, though administration officials are divided over what form that should take and how much they should spend. Some believe that business support is best left to the Federal Reserve, which has opened a series of lending programs meant to keep the financial system functioning and to help steady the economy once the recovery begins. |
| There is debate within the administration, for example, over whether to continue spending hundreds of billions of dollars on the Paycheck Protection Program, which provides forgivable loans for smaller companies. Congress has already allocated $660 billion for the program and to help companies stay in business and keep paying workers, but it has quickly lost favor among lawmakers amid revelations that larger companies are benefiting from funds meant to help mom-and-pop shops. | There is debate within the administration, for example, over whether to continue spending hundreds of billions of dollars on the Paycheck Protection Program, which provides forgivable loans for smaller companies. Congress has already allocated $660 billion for the program and to help companies stay in business and keep paying workers, but it has quickly lost favor among lawmakers amid revelations that larger companies are benefiting from funds meant to help mom-and-pop shops. |
| Mr. Trump nodded to the tension in a Fox News virtual town hall on Sunday, telling a questioner who was experiencing economic duress: “There is more help coming. There has to be.” But, he added: “I think we’re going to have an incredible following year. We’re going to go into a transition in the third quarter, and we’re going to see things happening that look good. I really believe that. I have a good feel for this stuff.” | Mr. Trump nodded to the tension in a Fox News virtual town hall on Sunday, telling a questioner who was experiencing economic duress: “There is more help coming. There has to be.” But, he added: “I think we’re going to have an incredible following year. We’re going to go into a transition in the third quarter, and we’re going to see things happening that look good. I really believe that. I have a good feel for this stuff.” |
| Mr. Trump’s advisers are considering several measures that so-called supply-side conservatives have long proposed as a means to accelerate economic growth. In many cases, those measures would expand or make permanent provisions of the sweeping tax overhaul Mr. Trump signed into law in 2017. They include making permanent a provision that allows businesses to immediately deduct the full cost of their investments in equipment and other relatively short-lived assets, which is currently set to begin phasing out in 2022. | Mr. Trump’s advisers are considering several measures that so-called supply-side conservatives have long proposed as a means to accelerate economic growth. In many cases, those measures would expand or make permanent provisions of the sweeping tax overhaul Mr. Trump signed into law in 2017. They include making permanent a provision that allows businesses to immediately deduct the full cost of their investments in equipment and other relatively short-lived assets, which is currently set to begin phasing out in 2022. |
| In some cases, the proposals would reverse provisions tucked into the 2017 overhaul to help pay for the overall package, such as limiting deductions on research and development investments in 2022. | In some cases, the proposals would reverse provisions tucked into the 2017 overhaul to help pay for the overall package, such as limiting deductions on research and development investments in 2022. |
| Officials have also discussed extending the immediate deduction provision, known as “full expensing,” to structures — allowing anyone who buys a building to write off its cost right away. The Tax Foundation in Washington, which analyzes tax proposals and tends to find high economic effects from tax cuts, estimates that such an expansion would reduce federal revenues by $1.6 trillion over a decade, before accounting for additional growth. | Officials have also discussed extending the immediate deduction provision, known as “full expensing,” to structures — allowing anyone who buys a building to write off its cost right away. The Tax Foundation in Washington, which analyzes tax proposals and tends to find high economic effects from tax cuts, estimates that such an expansion would reduce federal revenues by $1.6 trillion over a decade, before accounting for additional growth. |
| Updated July 7, 2020 | |
| The coronavirus can stay aloft for hours in tiny droplets in stagnant air, infecting people as they inhale, mounting scientific evidence suggests. This risk is highest in crowded indoor spaces with poor ventilation, and may help explain super-spreading events reported in meatpacking plants, churches and restaurants. It’s unclear how often the virus is spread via these tiny droplets, or aerosols, compared with larger droplets that are expelled when a sick person coughs or sneezes, or transmitted through contact with contaminated surfaces, said Linsey Marr, an aerosol expert at Virginia Tech. Aerosols are released even when a person without symptoms exhales, talks or sings, according to Dr. Marr and more than 200 other experts, who have outlined the evidence in an open letter to the World Health Organization. | |
| Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days. | Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days. |
| Scientists around the country have tried to identify everyday materials that do a good job of filtering microscopic particles. In recent tests, HEPA furnace filters scored high, as did vacuum cleaner bags, fabric similar to flannel pajamas and those of 600-count pillowcases. Other materials tested included layered coffee filters and scarves and bandannas. These scored lower, but still captured a small percentage of particles. | Scientists around the country have tried to identify everyday materials that do a good job of filtering microscopic particles. In recent tests, HEPA furnace filters scored high, as did vacuum cleaner bags, fabric similar to flannel pajamas and those of 600-count pillowcases. Other materials tested included layered coffee filters and scarves and bandannas. These scored lower, but still captured a small percentage of particles. |
| A commentary published this month on the website of the British Journal of Sports Medicine points out that covering your face during exercise “comes with issues of potential breathing restriction and discomfort” and requires “balancing benefits versus possible adverse events.” Masks do alter exercise, says Cedric X. Bryant, the president and chief science officer of the American Council on Exercise, a nonprofit organization that funds exercise research and certifies fitness professionals. “In my personal experience,” he says, “heart rates are higher at the same relative intensity when you wear a mask.” Some people also could experience lightheadedness during familiar workouts while masked, says Len Kravitz, a professor of exercise science at the University of New Mexico. | A commentary published this month on the website of the British Journal of Sports Medicine points out that covering your face during exercise “comes with issues of potential breathing restriction and discomfort” and requires “balancing benefits versus possible adverse events.” Masks do alter exercise, says Cedric X. Bryant, the president and chief science officer of the American Council on Exercise, a nonprofit organization that funds exercise research and certifies fitness professionals. “In my personal experience,” he says, “heart rates are higher at the same relative intensity when you wear a mask.” Some people also could experience lightheadedness during familiar workouts while masked, says Len Kravitz, a professor of exercise science at the University of New Mexico. |
| The steroid, dexamethasone, is the first treatment shown to reduce mortality in severely ill patients, according to scientists in Britain. The drug appears to reduce inflammation caused by the immune system, protecting the tissues. In the study, dexamethasone reduced deaths of patients on ventilators by one-third, and deaths of patients on oxygen by one-fifth. | The steroid, dexamethasone, is the first treatment shown to reduce mortality in severely ill patients, according to scientists in Britain. The drug appears to reduce inflammation caused by the immune system, protecting the tissues. In the study, dexamethasone reduced deaths of patients on ventilators by one-third, and deaths of patients on oxygen by one-fifth. |
| The coronavirus emergency relief package gives many American workers paid leave if they need to take time off because of the virus. It gives qualified workers two weeks of paid sick leave if they are ill, quarantined or seeking diagnosis or preventive care for coronavirus, or if they are caring for sick family members. It gives 12 weeks of paid leave to people caring for children whose schools are closed or whose child care provider is unavailable because of the coronavirus. It is the first time the United States has had widespread federally mandated paid leave, and includes people who don’t typically get such benefits, like part-time and gig economy workers. But the measure excludes at least half of private-sector workers, including those at the country’s largest employers, and gives small employers significant leeway to deny leave. | The coronavirus emergency relief package gives many American workers paid leave if they need to take time off because of the virus. It gives qualified workers two weeks of paid sick leave if they are ill, quarantined or seeking diagnosis or preventive care for coronavirus, or if they are caring for sick family members. It gives 12 weeks of paid leave to people caring for children whose schools are closed or whose child care provider is unavailable because of the coronavirus. It is the first time the United States has had widespread federally mandated paid leave, and includes people who don’t typically get such benefits, like part-time and gig economy workers. But the measure excludes at least half of private-sector workers, including those at the country’s largest employers, and gives small employers significant leeway to deny leave. |
| So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement. | So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement. |
| Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks. | Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks. |
| A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study. | A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study. |
| If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.) | If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.) |
| If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others. | If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others. |
| Administration officials have also weighed a less-costly substitute for that proposal, which would allow companies to deduct investments in structures over time, but with adjustments for inflation and other factors, in order to increase the value of the deduction. That “neutral cost recovery” system would reduce revenues by about $1.3 trillion before accounting for growth effects, the Tax Foundation estimates. | Administration officials have also weighed a less-costly substitute for that proposal, which would allow companies to deduct investments in structures over time, but with adjustments for inflation and other factors, in order to increase the value of the deduction. That “neutral cost recovery” system would reduce revenues by about $1.3 trillion before accounting for growth effects, the Tax Foundation estimates. |
| Officials are also considering some way to encourage individual investors to take risk, perhaps by reducing the rate on capital gains taxes, a senior administration official said. Those taxes, which range from 0 to 20 percent based on income levels, are assessed on realized profits from sales of stock and other investments. | Officials are also considering some way to encourage individual investors to take risk, perhaps by reducing the rate on capital gains taxes, a senior administration official said. Those taxes, which range from 0 to 20 percent based on income levels, are assessed on realized profits from sales of stock and other investments. |
| Mr. Trump has made clear, officials and allies said, that his top priorities are a suspension of all payroll taxes paid by employees and an expansion of business deductions for meals, entertainment and sporting events. | Mr. Trump has made clear, officials and allies said, that his top priorities are a suspension of all payroll taxes paid by employees and an expansion of business deductions for meals, entertainment and sporting events. |
| Democrats have already begun to criticize Mr. Trump for pushing tax cuts they say are unrelated to the economy’s current situation — where activity is limited and slow to return even in areas where restrictions have been lifted, because would-be consumers continue to fear contracting the virus — and unlikely to help hard-hit workers and small-business owners. | Democrats have already begun to criticize Mr. Trump for pushing tax cuts they say are unrelated to the economy’s current situation — where activity is limited and slow to return even in areas where restrictions have been lifted, because would-be consumers continue to fear contracting the virus — and unlikely to help hard-hit workers and small-business owners. |
| “It’s extraordinarily naïve to think that tax cuts are going to bring this economy back faster,” said Representative Donald S. Beyer Jr., Democrat of Virginia and the vice chairman of the Joint Economic Committee. “I have not talked to a single economist yet who says tax cuts are a viable solution here.” | “It’s extraordinarily naïve to think that tax cuts are going to bring this economy back faster,” said Representative Donald S. Beyer Jr., Democrat of Virginia and the vice chairman of the Joint Economic Committee. “I have not talked to a single economist yet who says tax cuts are a viable solution here.” |
| Mr. Beyer and two Democratic counterparts in the Senate, Michael Bennet of Colorado and Jack Reed of Rhode Island, released a plan on Tuesday for a very different sort of economic response to the virus. It would tie enhanced unemployment benefits to economic conditions, phasing them down from the current benefit — which adds $600 per week to every unemployment check — once the crisis abates and the unemployment rate begins to fall. If the rate stays near 10 percent for years to come, the benefits could last until as late as April 2022. | Mr. Beyer and two Democratic counterparts in the Senate, Michael Bennet of Colorado and Jack Reed of Rhode Island, released a plan on Tuesday for a very different sort of economic response to the virus. It would tie enhanced unemployment benefits to economic conditions, phasing them down from the current benefit — which adds $600 per week to every unemployment check — once the crisis abates and the unemployment rate begins to fall. If the rate stays near 10 percent for years to come, the benefits could last until as late as April 2022. |
| Republicans have pushed to end the enhanced unemployment benefits earlier than scheduled, saying they are dissuading workers from staying on payrolls or returning to their jobs. | Republicans have pushed to end the enhanced unemployment benefits earlier than scheduled, saying they are dissuading workers from staying on payrolls or returning to their jobs. |
| Some Republican senators urged a pause in stimulus measures on Tuesday, while others expressed openness to more government aid. | Some Republican senators urged a pause in stimulus measures on Tuesday, while others expressed openness to more government aid. |
| “We’ve already appropriated a lot of money,” said Senator John Kennedy of Louisiana. “I think at this juncture it’s appropriate to step back and see what’s working and what’s not. I know our businesspeople still need help. I know our state and local governments still need help.” | “We’ve already appropriated a lot of money,” said Senator John Kennedy of Louisiana. “I think at this juncture it’s appropriate to step back and see what’s working and what’s not. I know our businesspeople still need help. I know our state and local governments still need help.” |
| Senator Mitt Romney of Utah arrived for a Republican lunch on Tuesday with a poster board displaying state budget data. It was titled “Blue states aren’t the only ones who are screwed.” | Senator Mitt Romney of Utah arrived for a Republican lunch on Tuesday with a poster board displaying state budget data. It was titled “Blue states aren’t the only ones who are screwed.” |
| Emily Cochrane contributed reporting. | Emily Cochrane contributed reporting. |