The "Explore America Tax Credit" is a stupid idea

COVID-19 has rocked the American economy. After Congress passed a massive stimulus package that saw most American tax-payers receive a paltry $1,200 check from the IRS (plus a little more if you have kids). We are now approaching three months since the stimulus checks began being dispersed to Americans, and with unemployment figures still at their highest since the Great Depression, many have been left wondering, “will there be another round of checks?”

Many Republicans in Congress, including Senate Majority leader and anthropomorphic tortoise Mitch McConnell, have announced that they have little desire to pass another round of stimulus checks. In early May, Treasury Secretary Steven Mnuchin announced that the Trump administration was considering what it calls the “Explore America” tax credit which would, in essence, “create a tax credit worth 50 percent of qualified travel expenses incurred in the US between the date of enactment and December 31, 2021, up to a maximum tax credit of $4,000 per household.”

In layman’s terms, this means that an American family would be able to take an $8,000 vacation within the United States and write half of it off of their taxes. While this seems like a great way to bolster the economy of parts of the country that depend heavily on tourism, it is not going to help the average person in this country.

Like many of the fiscal policies enacted by this administration, the “Explore America” tax credit seems to be completely out of touch with the financial realities of the average American and seems to disproportionately benefit the well-off. I guess you can’t expect much from a “self-made” “billionaire” who made his fortune after getting “a small loan of $1 million” from his father.

The real state of America’s financial wellbeing:

• The United States has no federally mandated vacation time (much less paid vacation time)

• 40% of Americans would be unable to afford an unexpected $400 expense (source)

• 78% of American workers live “paycheck-to-paycheck” (source)

• 51% of Americans “would need to access savings to cover necessities if they missed more than one paycheck” (source)

• 29% of American households have less than $1000 in savings (source)

A huge percentage of the American populace is financially unable to take time off work, much less go on vacation. Millions of households are falling behind on rent and sadly, although many local governments have passed bans on evicting people from their homes during this crisis, people will still be expected to make up their missed payments.

During these unprecedented times, the average American needs financial relief to be able to afford the most basic of necessities like rent, utilities, and groceries. Giving Americans the option to subsidize their vacations does nothing to help people who actually it. Congress needs to pass another economic relief package to put money in the hands of the average person and to enact a freeze on mortgage and rent payments.