The payroll support is split between 70% outright funding airlines do not need to pay back, and 30% low-interest loans.
Wouldn’t a GM-style bailout, which turned a profit, be better than simply handing them our tax dollars?
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Why cant they pull themselves up by their bootstraps?
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looks like we do get a little ownership:
from the article:
Airlines will further issue warrants to the government. That would give the government low single-digit shareholding in the airlines, to be bought based on recent stock prices.
Just for the airlines or for ALL businesses that take stimulus $$?
That’s a good question.
Airlines seem to be in a special category. They are a) a huge part of our economy and b) constantly needing bailed out.
Have to ponder this some more.
Shouldn’t matter. There are different parts of the bail out going to different area’s. Should citizens have to pay back the $1,200+ plus interest so the government makes a profit?
the tea party argument here would be, the $1,200 is OUR tax money. As is the billions going to teh airline.
How much assistance has Trump given to the USPS compared to the airlines?
Either that or perhaps after this is over it’ll be time to consider raising taxes
And your thoughts are? If the airlines should be like tarp and need to be repaid and make a proffit, does the personal payment need to have the same done. Simple question since you brought up the airline payments.
Or leave them be and after we return to normal cut the budget.
You are being a bit misleading.
The money the airlines don’t have to pay back is only for payroll purposes. That money must be used in payroll. So to really figure out if it’s good or bad you would have to figure out if not done, how much would the Government payout on unemployment and other money for unemployed.
The parts they can use on general expenses are a loan.
In addition, the airlines must agree to keep flying to certain locations. Since most flights are empty if not for these grants and loans most would just stop flying all together now.
The ripple effect on that would be massive. Besides people not being able to get anywhere (representatives back to district and DC. Doctors not being able to go where needed. Families not being able to be with loved ones during medical issues, etc) there would be even more unemployment (airport workers, etc).
Not having studied all the math I can’t say it’s net good or bad, but can say it’s not as simply as “we are giving them all this money and get nothing”
Do both
How about this for taxes:
personal: Single tax rate. One tax payer per tax form. A single deduction per tax form equal to 80% of the federal minimum wage. No other credits or deductions allowed, and no refundable credits.
corporate: Single tax rate. Only deductions are those that the company pays that are taxed on the individual leval. Then they get a single 30% deduction.
All income earned and unearned subject to income tax.
Deal?
ETA: Both personal and business also get to deduct any tax paid to a foriegn country from what is owed on their taxes.
BUT places like apple that stash money overseas. That money through their whatever is counted as income NOW, not when re-patriated.
I’m of the mind that the $1200 is a return of our tax dollars during a time of need.
I’d rather see us buy into the airlines in a larger way, in a deal more similar to the GM bailout.
Those are fair points.
I have to say though, as I work through the PPP program, I don’t have a lot of faith in the cast of characters putting these deals together. The PPP program is riddled with errors and inconsistencies, and is at fundamental odds with other bailout programs like the enhanced UE benefits.
At what point would the individual tax kick in? Do you tax starting with the first dollar earned? I’m not sure I follow how your deduction would work.
Do you think eliminating a joint return is a good idea? Wouldn’t that make having a stay at home parent even harder?
Do you think eliminating deductions that make home ownership easier is smart?
There is never a normal.
Honestly, the last 1-2 years of Obama and the first 3 of trump are probably the closest to normal we’ve had in the last 30 years. Obama and the GOP congress did OK in moving the deficit down, but Trump blew it back up again.
The airlines have been experiencing great profitability in recent years, and have used a substantial portion of their profits in stock buybacks that inflate the value of their stock. Since their executives have much of their compensation tied to stock this strategy greatly inflated executive pay. They have not used their profits to raise employee wages across much of the scale or to improve customer service and experience, which as most of us know has deteriorated substantially in the past twenty years.
Why aren’t the airlines being compelled to match the federal funds by selling stock – recouping their own profits for use in payroll?
Why does the entire cost have to be shifted to taxpayers?
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Right now federal minimum wage is $7.25 an hour or $15,080 a year.
With my proposal . . say the tax rate is 18%.
Mom works full time minimum wage – her tax form would show 15,080 income - 12,064 deduction. and pay 18% tax on 3,016 . . . 542 in federal tax.
Now guy down the street up on the hill, has a total income of 15 million dollars - 12,064 deduction. Would pay 18% on 17,987936 . . . . 3.2 million (plus change) in Federal Tax.
