FOR IMMEDIATE RELEASE:
March 20, 2020
Contact: Press@paul.senate.gov, 202-224-4343
WASHINGTON, D.C. – Today, U.S. Senator and physician Rand Paul (R-KY) announced he will soon introduce his COVID-19 Recovery Act, a plan that confronts the novel coronavirus pandemic’s effects by providing relief to American families and businesses without adding to the skyrocketing debt that also threatens our country.
“The national emergency we face may be new, but the answers out of Washington have so far been the same: more spending, more debt, and more mandates on the American people. Instead, we can ease concerns by putting the responsibility on government, not our families. My plan gets counter-productive regulations out of the way so we can recover faster, trusts Americans by enabling them to keep more of their own money, and provides incentives to give the relief of extra time to those paying off debt,” said Dr. Paul.
As an alternative to the plans Congress is ramming through over the concerns of small business owners and other Americans, Dr. Paul’s proposal implements President Trump’s call for a payroll tax cut, creating a 60-day payroll tax holiday for both workers and businesses.
To prevent government from further burdening businesses already struggling with the virus’ impact, the Paul plan replaces recently passed mandates with reforms from an amendment introduced earlier this week by Senator Ron Johnson (R-WI) that echoed Dr. Paul’s calls for change in the system and received bipartisan support. Among its provisions, the language expands unemployment insurance for those who have lost their jobs due to the pandemic and removes the waiting period to receive the insurance. In addition, Dr. Paul has added language widening eligibility to include self-employed Americans.
The COVID-19 Recovery Act also extends the deadline for filing income taxes by 90 days for workers and by one quarter for businesses, while waiving all fees and penalties, and it provides lenders with a tax credit incentive so Americans will have more time and flexibility on their loan payments to help them meet pressing needs.
You can find a summary of Dr. Paul’s proposal below:
Dr. Rand Paul’s COVID-19 Recovery Act
- Is subject to PAYGO rules
- Creates an immediate 60-day payroll tax holiday for both workers and businesses
- This gives businesses immediate relief by reducing their employment cost by 8.3%, making it easier to “restart” after the COVID-19 crisis.
- This also would give workers an immediate 8.3 percent raise.
- Replaces Congress’ crushing mandates on paid leave with reforms from an amendment introduced by Senator Ron Johnson (R-WI) that echoed Dr. Paul’s calls for change in the system and received bipartisan support to expand unemployment-based sick leave, putting the burden on government instead of the American people
- This language, which would help address concerns Dr. Paul has heard from Kentuckians about Congress’ recently passed response legislation, would especially provide relief for small businesses. The amendment allows for temporary enhancements to states’ unemployment programs so that Americans who cannot work due to the coronavirus are protected with expanded unemployment benefits. The federal government will pick up the cost of the states’ expansion afterward.
- In addition, Dr. Paul’s plan would make self-employed workers eligible for unemployment insurance.
- Moves back the IRS Tax Filing Deadline to July 15 for workers and by one quarter for businesses
- Dr. Paul’s COVID-19 Recovery Act waives all fees and penalties for both workers and businesses.
- In this time of crisis, the last thing anyone wants to have to think about is filing their taxes.
- This will help small businesses focus on reopening instead of filing taxes.
- Encourages lenders that suspend payment for 60 days (without accruing interest) by affording them a tax credit equal to their lost interest as a result of this policy.
- The tax credit cannot exceed 3% of gross income in any given year and can be carried back one year and forward 20 years – in full or in part.
- This is standard for carry back/forward.