In this week’s roundup, we look at President Trump’s proposals intended to dampen the negative economic impact of the coronavirus outbreak—including a tax holiday for workers and businesses. Also, we provide a summary of the Securities and Exchange Commission’s proposal to soften exempt offerings, which are used in the capital formation process.
Trump Floats Tax Holiday to Inoculate Economy from Coronavirus
President Trump met with Republican senators on Capitol Hill this week to drum up support for an economic stimulus package to soften the impact of the novel coronavirus outbreak.
The proposals, which the president brought to legislators on March 10, include financial assistance to workers without paid sick leave, tax relief to industries hit hardest by the outbreak, and a temporary payroll tax cut that would last through the end of 2020, according to members of Trump’s Coronavirus Task force during a press conference.
The proposal to cut payroll taxes through the end of the year would cost an estimated $700 billion, but the White House has offered no details on the measures or how it would make up for lost revenue.
Democrats oppose the proposal, but even some Republicans voiced doubt.
“I don’t know if a payroll tax cut is the right stimulus, but we need something,” said Lindsey Graham, R-N.C., to reporters following a meeting with the president.
The House is set to vote today on an aid package it introduced Wednesday night, according to reporting from the New York Times.
SEC Proposes Rule Changes to Simplify the Exempt Offering Framework
The Securities and Exchange Commission has proposed a set of amendments that would simplify the exempt offering framework to promote capital formation.
The proposed rules, announced on March 4, are designed to reduce friction points in the offering framework to help market participants navigate the exempt offering process.
Click here for more information on the SEC’s proposal.
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Benjamin Glick is ACG Global’s marketing and communications associate.