People need help and relief now more than ever as the coronavirus pandemic sweeps across the nation and the world.
What they do not need is the Internal Revenue Service breathing down their necks demanding payments when they are out of work.
That is why it had to be a relief for many to hear Treasury Secretary Steven Mnuchin say that tax payments up to $1 million could be deferred for up to 90 days.
The secretary made the announcement on Tuesday where he also said that the payments would be interest and penalty free.
He said that the deferral of near $300 billion would create “an enormous amount of liquidity in the system” at a time when it is needed most.
And he said if you are able to file your taxes by the original April 15 deadline, which has now been moved to June 15, you should do so.
“For many Americans, you will get tax refunds, and we don’t want you to lose out on those tax refunds,” the secretary said.
But the secretary did not have such rosy news on Sunday when he predicted that the lockdown to stop coronavirus could go on for as many as 12 weeks.
To combat the affect on the lives of Americans Mnuchin said that he expects a stimulus bill will be finalized today that would get everyone through the tough period.
“I think we have a fundamental understanding and we look forward to wrapping it up today,” he said on “Fox News Sunday.”
Part of it would be what is called “small business retention loans,” that would provide small businesses with the cash they need to pay their employees for two weeks.
“You need to retain them. You’ll also get some overhead. And if you do that, those loans will be forgiven,” he said. “That will allow small businesses to keep people, and make sure when we open up the economy, they’re up and running.”
He also said that direct payment to an average family of four would be somewhere in the area of $3,000 per month during the crisis.
Another part, he said, is “a significant package working with the federal reserve, which will provide up to $4 trillion of liquidity that we can use to support the economy.”
He said the plan is meant to sustain the United States for a 10 – 1 week period bu that more would be done if it lasts longer.
And he said that expects that the economy would make a full recovery when the pandemic was over.
“The U.S. economy is strong. We’ve stopped major parts of it, but when we get through this virus, as I’ve said, I think you’re gonna see the U.S. economy come back to the strength, we have great companies, we have great workers,” the secretary said. “What we need to do is have a bridge to get through this. And this isn’t the financial crisis that’s gonna go on for years.”
The Senate is expected to have a procedural vote on the package on Sunday and then further negotiations are expected, butt he sides are said to be very close.