U.S. equity futures were lower Thursday night after Senate Republicans unveiled their third phase coronavirus stimulus package. S&P 500 futures and Dow futures were both down 1.8%.
The plan, outlined by Senate Majority Leader Mitch McConnell, would pay up to $1,200 to individual taxpayers, and up to $2,400 for married couples.
The payments would be lower for anyone making more than $75,000, or couples making more than $150,000. Individuals making more than $99,000, or couples earning more than $198,000, would not get such payments. Those with no federal income tax liability would get a minimum of $600.
“No tangled Washington process with a thousand cooks in the kitchen,” said McConnell. “No piles of forms for laid-off workers or busy families to fill out. Money for people. From the middle class on down. Period.”
The Republican plan sets forth $300 billion for loan guarantees to small businesses. It also includes billions in loan guarantees for passenger air carriers, cargo air carriers, and another $150 billion for other large businesses. It authorizes the government to take equity stakes in businesses—something that could dilute existing shares.
“We are not talking about a taxpayer-funded cushion for companies that made mistakes,” he said. “We are talking about loans, which must be repaid, for American employers whom the government itself is temporarily crushing for the sake of public health.”
House Speaker Nancy Pelosi and Senate Minority Leader Chuck Schumer said in a joint statement that in order to get support from Democrats in Congress, such a stimulus plan would need to include “new, strong and strict provisions that prioritize and protect workers, such as banning the recipient companies from buying back stock, rewarding executives and laying off workers.”
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