A Republican senator has proposed a $4,000 tax incentive for Americans to go on vacation in a bid to reboot the tourism sector after the coronavirus pandemic.
Martha McSally’s bill – the American Tax Rebate and Incentive Program Act, or American TRIP Act – would also offer an $8,000 deduction for couples and an additional $500 per child.
The credit would cover expenses on food, hotels, transportation and entertainment through the end of 2021 – but only for vacations that are within the United States and at least 50 miles from home.
The Arizona senator said the tourism sector in her state was suffering a 35 per cent unemployment rate because of the economic standstill caused by the pandemic.
Martha McSally (left), pictured exiting Air Force One with Donald Trump yesterday, has proposed a $4,000 tax credit to encourage domestic tourism after coronavirus
‘The tourism and hospitality industries were among the hardest hit sectors across the country and their revival is critical to our economic recovery,’ McSally said.
‘My legislation will help boost domestic travel and jumpstart the comeback’ of the hotel and entertainment sectors, she said.
‘It will also encourage Americans to safely get out of their homes and discover or rediscover Arizona along with the rest of the amazing destinations our country has to offer after a difficult several months stuck inside.
‘I look forward to working with both sides of the aisle in the Senate and House to restart an important part of the economy by passing this bill.’
The proposed law would deduct up to $4,000 from an individual’s tax bill for vacation expenses including food, lodgings and transportation.
The vacation would have to be within the United States and no less than 50 miles from the person’s home.
It would cover vacations between January 2020 and December 2021, meaning people could claim for travel earlier this year.
The proposed tax credit would even include travel to a holiday home, although the costs of running the property would not be covered.
McSally’s bill would also provide $50million to help help Destination Marketing Organizations promote travel and tourism across the nation, her office said.
McSally (third from left) applauds as Trump signs a plaque on the border wall in Arizona
McSally yesterday joined Donald Trump in visiting part of a border wall as the president went to Arizona for a rally.
Polls show McSally trailing her Democratic challenger Mark Kelly ahead of November’s election.
Some polls have also shown Trump trailing Joe Biden in Arizona, which has only voted for a Democratic presidential candidate once since 1948.
Arizona yesterday reported a record 3,591 new coronavirus cases, taking the state’s total to 58,179.
There have been 1,384 deaths.
The state also saw record hospitalizations, record patients in intensive care, and a record number of patients on ventilators.
Maricopa County, which includes Phoenix, accounts for more than half of Arizona’s total number of infections with 33,883.
Biden called Trump’s visit reckless as Arizona’s infection rate continues to mount.
‘Once again, instead of doing the hard work needed to solve the public health and ceylon economic crises facing America, Donald Trump remains focused on his expensive, ineffective, and wasteful “wall” on our Southern Border,’ he said in a statement.