Did anyone see this yet?
I did see it.
Although I’m no fan of the administration, I don’t think this is a bad idea per se. It would be a good way to bump the economy. I believe the plan is a 50% tax break on all domestic travel and restaurants at least 50 miles from home.
Up to $4000, yes. Would be great for our Disney trip in May 2021.
Ha!!! This world is officially gone mad but happy to do my part!
I don’t know to think of this. What we don’t need is more national debt.
At the same time, encouraging travel to help the businesses affected so bad is admirable. I’m just not convinced it will help anything. Those who can afford to travel probably will as soon as people feel it is safe to do, with or without a credit. So I think the credit probably isn’t a great idea.
I agree with you regarding the national debt.
But I think there are many people afraid to travel, especially fly. Most of the people I know are doing local trips. The furtherest they are going is the beach, camping, and a national park (the closest one is 45 minutes away). This may be more of an incentive to fly and go beyond the beach and parks.
The tourism industry is one of the worst-paying professions in the United States. A study by researchers at Florida State University last year found that leisure and hospitality workers earned an average of $311 per week — less than half of the $710 a week economy-wide average. And the gap has been widening over time; the same study found that, for every $1 increase in economy-wide wages, leisure and hospitality wages grow just 81 cents.
From just a return-on-investment perspective, it would be more economically stimulating to fly helicopters over apartment complexes in central Florida and push bales of cash out the doors.
In Florida, for instance, the Florida Restaurant & Lodging Association is raising money to fight a proposed amendment to the state Constitution that will be on the ballot this fall. If approved by voters, the measure would lift to the state minimum wage, currently $8.56 an hour, to $10 an hour next year and to $15 an hour by 2026.
Good luck with that. The last time we had a minimum-wage-hike amendment on the ballot in Florida, it passed by a supermajority in all 67 counties.
I’m the opposite. I am extremely pleased with the administration, but I think it would make more sense just to send the money to the businesses that need it… well - if I thought giving away more taxpayers money was a good idea…
My reservations about traveling right now aren’t all financial.
• My family would not want to go somewhere that wasn’t operating at 100% fun.
• My family has made it clear it wouldn’t be vacation if they had to wear a mask.
• We are using every “extra” dollar we have to update our house so we can move out of NY. Said travel incentives would likely not cover an entire trip and I’d be shooting myself in the foot.
I am doubtful this will get off the ground.
In a sense, that’s exactly what the tax credit would do. If you, as a taxpayer, can only get the tax credit if you spend the money on travel, and IF you wouldn’t have traveled otherwise, then you are effectively handing over to the businesses the money, by way of the taxpayer. It then becomes up to the taxpayers to decide which travel businesses to give the money to rather than the government.
In that sense, it is a good plan…AGAIN, IF I thought it would actually make a difference AND not add to the national debt. But it will definitely do the latter, and will unlikely accomplish the former.
I am fortunate enough that both my wife and I are currently employed. The only thing we need to “stimulate” us to spend more and travel is knowing that 1) it is safe to do so AND 2) we are able to get the “full” experience. We cancelled our August trip to WDW and UOR because we don’t feel 1 and 2 will be possible.
Yes, just seen earlier today. I think it’s a great idea.
Yeah, more of the same. Good for here and now but potentially catastrophic for our country and children in the future. US dollar won’t be the world’s reserve currency forever…
Agreed, policy and economic wise, this admin has done a phenomenal job.
Same here. But, I will say we have saved quite a bit of money by not traveling. We don’t really budget, we pay for the things that must be paid for, a set amount for savings and the rest for “whatever”.
When travel (for up to 5 people) is one’s usual “whatever”, it is a real eye-opener to suddenly stop doing it and watch the bank account. I wouldn’t trade our trips for anything, but it does drive home what a luxury they really are.
It’s one thing to re-open things, but to give people monetary incentives specifically to travel distances and possibly increase the spread? Not sure that’s a well thought out approach…
This is us too. Watching the bank account grow and grow during this time has been eye opening to how much we spend on travel and fun in general. I too wouldn’t change past or future travel either, it is so worth it to us. But yes, it is amazing how much money you can make just working and not spending/traveling!
Where do I sign up for this bank account growing and growing thing?
Our trips are funded by our giant annual tax returns. We realized decades back that we really need Uncle Sam to hold on to it for us - we even let him earn some interest - and then give it back to us as five figures.
This year we focused on the house. One silly contractor took as much as a 7-night cruise for 8 people just to do a shower and floor in a 4x4 bathroom…
I am in the wrong business.
The money we saved on reading tutors, speech pathologists, and music lessons did buy a lot of light fixtures, paint brushes and wallpaper!
Bathrooms cost the same square footage as kitchens. The two most expensive rooms in the house. When we bought our mountain home, it was key that the kitchen and two of three bathrooms had already been remodeled- but the third… I thought “It’s small, how bad could it be?”
Bad. Very bad.
Not just a cruise, a luxury cruise.
The good thing about it was that since that was 90% labor, I didn’t give a damn about the costs of the fixtures and tile, they were just a drop in the bucket, so at least it looks really nice!
So the interesting part is that if it is a tax credit through the end of 2021 that would lead me to believe that you could get the $4000 tax credit for 2020 and another $4000 tax credit for 2021. When you file your taxes you are not able to claim prior year deductions so that is why I would think if they get it approved you may be able to take advantage of it twice.