Administration Promises Tax Payment Relief in Response to Virus

By:
Chris Gaetano
Published Date:
Mar 12, 2020
1280px-U.S._Treasury_Building_and_Albert_Gallatin_Statue

The president, speaking last night, said that the Treasury Department will defer tax payments in response to the coronavirus outbreak. 

"Using emergency authority, I will be instructing the Treasury Department to defer tax payments, without interest or penalties, for certain individuals and businesses negatively impacted," he said in his speech. "This action will provide more than $200 billion of additional liquidity to the economy."

The announcement was short on details, such as whether this also meant that the filing deadline was pushed back or if the deferment applied only to payments; how long the payments would be put off; or who would qualify. However, previous comments made by Treasury Secretary Steven Mnuchin, as well as further clarification by others, indicate that the administration means both a filing and payment deferment, that the delay can be up to six months or a year if the president declares a national emergency, and that the relief would benefit most Americans and small businesses, save for very rich individuals and very large corporations. 

Beyond the tax relief, the administration also promised that the Small Business Administration would provide low-interest loans for businesses affected by the outbreak. He also reiterated his previous calls for Congress to pass a payroll tax cut to provide further relief. 

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