WASHINGTON – Today, as Republican Members of Congress refuse to support a House bill designed to provide relief to those affected by the coronavirus outbreak, and President Trump continues to advocate for corporate tax cuts and payroll tax cuts as the answer to the virus’ economic effects, Morris Pearl, the Chair of the Patriotic Millionaires and a former managing director at BlackRock, Inc., released the following statement:
“It is absurd that with millions of Americans at risk of economic devastation as a result of the spreading coronavirus, the Trump administration’s answer is the same answer as for all problems: cut taxes for the rich, and close the borders. The shareholders of the hotel, cruise, and airline companies should not get a dime in taxpayer relief until every single low-wage worker in America is taken care of. Even the administration’s most progressive proposal, payroll tax relief, is still too regressive and ineffective.
A payroll tax cut would give five times more relief to someone making $100,000 a year than someone making $20,000. For hourly and tipped employees who can’t go in to work if they get sick, the most vulnerable population that we should be tailoring any relief efforts specifically to help, a payroll tax cut actually has no impact whatsoever. Payroll tax cuts aren’t the answer to the economic damage caused by the spreading coronavirus.
At the very least these workers need immediate paid sick leave, but for them to be able to pay their bills and support their families, they need economic relief more than any other group of Americans. Any form of economic stimulus must do that, and a payroll tax cut is a much less effective way to help them than direct cash payments or expanded unemployment insurance.”
For further comments or questions, please contact Sam Quigley at sam@patrioticmillionaires.org.