The GOP's Lampoon Vacation - WSJ Editorial
The fallout from the coronavirus is leading to all sorts of bad ideas...Republicans prefer their subsidizing through the tax code. A bad example of the latter is Senator Martha McSally’s proposal for a $4,000 vacation tax credit.
The Arizona Republican last week introduced the American Tax Rebate and Incentive Program Act, or TRIP Act, offering a subsidy for Americans who travel anywhere in the U.S. that is more than 50 miles from home until 2022. Married couples can claim up to $8,000, and credits that directly reduce tax liability are much more generous than mere deductions that reduce taxable income. Eligible credit expenses include: travel, lodging, live entertainment, food and drink.
The bill answers the question millions of suffering Americans aren’t asking: What about my second home? Travel to another residence is eligible for the credit as long as you don’t try to write off the lodging. The commute to that weekend retreat in Sedona or the Hamptons would suddenly cost less.
The travel and tourism industries have been slammed by the pandemic, but this idea is a howler even by the low standards of Congress. Like nearly all tax credits, it would subsidize behavior that would have happened anyway... Other industries will also demand the same treatment. Why not a tax credit to shop at retail stores? Check that, we don’t want to give Senators any more bad ideas.
https://www.wsj.com/articles/the-gops-lampoon-vacation-11593472565 (subscription)
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