What Do The “Historical” Incentive Packages Of The USA And Germany Cover?
States are preparing unprecedented incentive packages against economic and social damage caused by the coronavirus pandemic.
The U.S. Senate approved the $ 2 trillion-dollar incentive package, prepared to address the social and economic damage of the coronavirus epidemic, and tossed the ball to the House of Democrats, where the Democrats were predominant, to be presented to US President Donald Trump. The incentive package was accepted with 96 votes against zero.
The package includes unprecedented credit injections and tax benefits to support large firms and individual taxpayers due to the economic damage caused by people avoiding social contact and closing businesses to prevent the spread of the virus.
Among the items of this package;
Extending the $ -260 billion unemployment benefit: Increasing all unemployment benefits by $ 600 per week, including jobs that are not normally eligible for unemployment benefits, additional 13-week benefits, and other changes,
-290 billion dollar one-time payments: $ 2,200 direct payment for individuals, $ 2,200 for couples, including $ 500 for each child,
Providing loans and grants for small businesses worth $ -377 billion: $ 25 billion for passenger airlines, $ 4 billion for cargo airlines, $ 17 billion for national security companies, and the Fed’s businesses, states and allowance for municipalities to offer up to $ 4.5 trillion in loans,
Support to $ 175 billion states and local governments: $ 150 billion in support and $ 25 billion in additional infrastructure investments, provided that at least $ 1.25 billion for each state,
Health-related expenditures of $ -180 billion: $ 100 billion for the hospital and public health fund, $ 27 billion under the preparatory fund, $ 6 billion for the community health center fund, $ 20 billion for home and tele-examination services, $ 20 billion to increase spending on veterans and healthcare professionals,
– $ 32 billion for education spending,
– $ 31 billion for spending on educational support for ghosts and other crises from Covid 19,
– $ 42 billion for spending on the security network,
-45 billion dollars for disaster relief expenses,
-10 billion dollars within the scope of lowering individual taxes,
– 280 billion dollars within the scope of lowering the business tax,
-35 billion dollars budget within other expenditures
What does the incentive package of Germany cover?
The government of Chancellor Angela Merkel in Germany has activated the emergency spending, by approving the 750 billion euro historical rescue package, which was prepared to eliminate the damage caused by the coronavirus pandemic.
The majority of lawmakers in the Bundestag approved the law, which allowed additional borrowing to combat the crisis in Wednesday’s vote, according to the parliament speaker. Bundesrat, the upper wing of the parliament, will vote on the package Friday.
Unusual empowerment is part of the legislative package aimed at protecting employment and businesses in Germany. The 156 billion euro ($ 169 billion) additional borrowing marks an amount equal to half of Germany’s normal annual spending.
“There is no model to balance such a crisis,” Finance Minister Olaf Scholz said at the Bundestag in Berlin, instead of Merkel, who was in quarantine at home for the measure. ”
The details of Germany’s package are as follows;
– 4.5 percent of GDP for additional social spending or an additional budget of 156 billion euro and 50 billion euro liquidity fund for freelancers,
– 600 billion euro rescue fund,
– 100 billion euro loan by the state-sponsored development bank KfW,
-400 billion euro collateral,
In addition, the state-sponsored KfW bank is 500 billion euros to increase the liquidity of Lamna companies.