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DC Tax Flash: Senate Sends Virus Bill to President

Tax Alert

The Senate today overwhelmingly approved House-passed legislation (H.R. 6201) to respond to the coronavirus outbreak. The "Families First Coronavirus Response Act" passed on a 90-8 vote. It now goes to the president, who will sign it into law. 

The bill's major provisions include free testing, employer tax credits for paid sick and family care leave, unemployment insurance, food assistance, and more.

The 110-page text of the legislation is posted here

A Joint Committee on Taxation explanation of the bill's provision to provide employer tax credits for paid sick and family care leave is posted here.

Attention now shifts to a more comprehensive package of proposals to rescue an economy staggered by widespread limits on commercial activities and transactions, socialization, travel, dining, and entertainment. One major aspect of the emerging proposal gaining support is a direct transfer of federal money to taxpayers to ease the hardship facing millions who have been idled by quarantines and closures.  

"As we speak, Chairman Grassley and others are determining the best pathway to put money directly in the hands of the American people," Senate Majority Leader Mitch McConnell (R-KY) said today.

​Asked today about reports that payments could be in $1,000 increments, the president said his team is considering a range of figures. "We're looking at timing that would be different - splitting the times, splitting the payments," he told reporters. "It hasn't been determined yet, but it will shortly be determined. [E]verybody seems to want to go big." A transcript of the president's press conference is posted here.

Treasury Secretary Steve Mnuchin has outlined a proposal that would start payments to taxpayers early next month. The administration's "Stage Three Proposal" is posted here



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