September 28, 2020

Treasury sees “high probability” of another US tax bailout plan



US Treasury Secretary Steven Mnuchin acknowledged Thursday that there is a “high probability” that another fiscal stimulus package will be necessary given the severity of the crisis unleashed by the coronavirus pandemic, but rejected the proposal to the democratic opposition assuring that it is convenient to wait “a few weeks”.

“We are going to carefully review the next few weeks. I think there is a high probability that we will need another one, but we just injected $ 3 trillion into the economy,” Mnuchin said in a virtual interview with The Hill newspaper, referring to the package. passed in April, the largest in US history.

“We are going to step back for a few weeks and think very clearly about how we have to spend the money and if we have to,” he added.

This Thursday, the new weekly report on unemployment benefit petitions was released, which added 2.4 million additional applications, putting the number of Americans who have signed up for unemployment in the last six weeks at 39 million.

Mnuchin rejected as “partisan” the proposal passed last week by the Democrat-controlled House of Representatives for a new $ 3 trillion rescue plan to ease the economic impact.

In the same vein, the main economic adviser to the White House, Larry Kudlow, who rejected the inclusion in the new stimulus program of the reinforcement of unemployment benefits and cash transfers present in the previous one, expressed himself.

“What the Americans want is to go back to work,” he said in an interview with the Washington Post newspaper, pointing to the possibility of a tax cut to boost economic activity.

The Democrats’ new economic package includes a trillion dollars to rescue states and local governments, as well as another round of direct payments of $ 1,200 to taxpayers with incomes below $ 75,000 annually, this time including immigrants without papers.

The White House and Republicans – as well as some Democrats – are opposed to turning to the undocumented as well as rescuing the states, since they warn that in some cases their financial problems are prior to the pandemic.

According to the Congressional Budget Office (CBO), the US Gross Domestic Product (GDP) It will drop at an annualized rate of 38% in the second quarter of this year due to social distancing and mobility restriction measures to contain the spread of the coronavirus.

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