My Simple COVID Relief Plan Actually Provides Relief

Some families could get more than $14,000 in new Covid relief - | Chattanooga News, Weather & Sports

[Updated March 7, 2021]

We are going off topic because this article has nothing to do with selling although it is related because some of the businesses that were hurt by the pandemic and the government’s reprehensible shut downs have sales organizations.

In the US, the COVID relief bill has passed the House of Representatives and the Senate and we learned that only 9% of the $1.9 trillion in the plan goes to actual COVID relief.  The 9% includes $1,400 for individuals earning less than $50,000 and several hundred billion dollars for small business relief although it’s unclear how the small business money will directly help the specific small businesses that were hurt the most.  It seems clear that this is another bill that won’t do what is needed but will certainly lead to a tax increase. Joe Biden said this could increase GDP by $1 trillion.  Imagine that.  Spend $1.9 trillion for a $1 trillion return.  Where I come from that’s a pretty bad investment so in response to their bloated, stupid bill, I present my simple plan and explain how it will help everyone involved.

Individuals are an easy demographic to help.  The IRS has income tax returns on file for both 2019 and by April 15, for 2020.  It’s easy to determine to what degree people earning under $50,000 were hurt by the pandemic.  Subtract their 2020 income from their 2019 income, add back unemployment benefits and stimulus money received, and you have the exact amount of their suffering.  Send them a check for that exact amount.  People who weren’t hurt won’t get any money and people who have been out of work for months get their 2019 earnings less what they collected in unemployment benefits in 2020.  The IRS has the numbers. It costs what it costs.  No applications needed.  Done. Period. Over. Everyone becomes whole.

Small businesses are almost as easy.  The IRS has corporate income tax returns on file for both 2019 and by April 15, for 2020.  In my experience there are several numbers that should be considered.  Rent, leases, insurance and utilities have to be paid regardless of whether a business was open.  Most small businesses are S corporations so the owner’s income is often the same as the business’ profit.  If the owner isn’t covered by the individual plan, we can take their 2019 net profit less the 2020 net profit and add rent, leases, insurance and utilities.  As with individuals, the IRS has the numbers, it costs what it costs, no applications or proof will be needed and small businesses and their landlords become whole.

There are businesses that don’t qualify as small businesses but still need help, like tourism and entertainment.  A similar plan can be offered to them except instead of matching profit, we simply get them back to break-even.

With this plan, we don’t need to pay off student debt, bail out states (they will be fine when both individuals and small businesses pay taxes on their replacement income), or spend any other taxpayer money on anything else except getting people back to where they were.

I’m sure my plan has flaws but it targets the people and businesses who need the help and doesn’t make the aid arbitrary.  While I have no idea how much this plan will actually cost (I’m a sales expert not an economics expert) I’d bet my business that it’s less than $1.9 trillion.

Schools don’t need money to reopen; they simply need to open the doors while the teachers need to live up to the contract under which they are being paid – or be terminated.  If everyone else has to show up for work, teachers should too.

What do you think?