President Trump called on congressional Democrats Friday to drop their demands for extra spending in an administration proposal to replenish a fund to help small businesses keep their employees on the payroll during the coronavirus crisis.
“Democrats are blocking a 251 Billion Dollar funding boost for Small Businesses which will help them keep their employees. It should be for only that reason, with no additions,” Mr. Trump tweeted.
Senate Democrats on Thursday objected to Senate Majority Leader Mitch McConnell’s bid to add the money to the Paycheck Protection Program, which offers small businesses up to $10 million in grants and loans if they keep employees paid for two months during the coronavirus shutdown. Republicans say the demand is so high that the current $350 billion fund will run dry in a few days.
Democrats said there should be hundreds of billions added for food stamps, low-income communities, states and hospitals.
The president said there will be more economic relief provided when Congress and the administration tackle a “phase four” bill in the coming weeks to boost a recovery.
“We should have a big Infrastructure Phase Four with Payroll Tax Cuts & more. Big Economic Bounceback!” Mr. Trump said on Twitter.
SEE ALSO: Senate Democrats block additional $250 billion for small business loans
The president also urged lawmakers to “go back to DEDUCTIBILITY by businesses if Restaurants, Clubs & Entertaiment is expected to flourish (like never before)!”
The 2017 tax cuts revoked a provision allowing corporations to deduct entertainment expenses annually, and limited deductions for meals.
IRS guidance in 2018 allowed corporations to deduct 50 percent of the cost of meals not considered “lavish or extravagant.”
Prior to the law, businesses also could deduct up to 50% of expenses such as sports tickets, golf outings and casinos.
• Dave Boyer can be reached at dboyer@washingtontimes.com.
Please read our comment policy before commenting.