Free Consultation: 858.450.1040 Payment | Client Login

MENUMENU
  • EDD
  • IRS
    • IRS Notices – What They Mean
  • About Us
    • MEET THE TEAM
    • PRACTICE AREAS
    • CONTACT US
  • TAX LAW & EDD RESOURCES
    • SMALL BUSINESS OWNERS TAX LAW GUIDE
    • EDD & IRS AUDITS
    • CRIMINAL TAX
    • SAN DIEGO TAX ATTORNEY
    • Orange County Tax Attorney Services
    • TAX BALANCE
    • INNOCENT SPOUSE RELIEF
    • OTHER TAX LAW MATTERS
    • SALES TAX AUDITS
    • UNFILED TAX RETURNS
    • OFFERS IN COMPROMISE
    • CALIFORNIA INCOME TAXES
    • INTERNATIONAL TAX
    • TAX COLLECTIONS
    • CORPORATE | BUSINESS TAX
    • PAYROLL TAX AUDITS
    • TAX LEIN
    • FAQs
  • SBA Loan Resources
    • PPP FORGIVENESS DENIAL APPEAL
    • SBA Criminal Defense
    • FAQs
  • RESOURCES
    • Blog
    • VIDEO LIBRARY
Home > Blog > What Do Stimulus Packages Look Like Around The World?

What Do Stimulus Packages Look Like Around The World?

June 23, 2020

2019 was an exceptionally strong year for the U.S. economy — the Dow Jones consistently hit record highs and unemployment rates dropped to a record low of just 2.1%. However, even a record-breaking year like that one could not prepare the American economy for the COVID-19 pandemic of 2020. 

But the U.S. is not alone in this dire situation— unusual circumstances brought about by the coronavirus have impacted economic growth around the world. In this article, we look at how the global market has changed over the last several months and what certain countries are doing to stimulate their economies through massive government programs. 

Governments around the world are acting decisively to protect their businesses and people from the economic disruption being caused by the COVID-19 virus pandemic. Whether through tax cuts, investment incentives, or changes to filing deadlines, tax systems will play a particularly significant role in helping to alleviate the financial and economic turmoil that is now occurring.

  • The United States has implemented a $2 trillion stimulus package, the largest in the country’s history.
  • Australia has guaranteed struggling businesses A$1,500 every two weeks per employee.
  • The European Central Bank will spend over 1 trillion euros on Eurozone bonds over the next nine months.
  • Canada has guaranteed C$2,000 a month to individuals affected by the coronavirus outbreak.

The Five G20 Countries with the Largest Coronavirus Stimulus Programs

  1. United States: $2.3 trillion (11% of GDP)
  2. Germany: $189.3 billion (4.9% of GDP)
  3. China: $169.7 billion (1.2% of GDP)
  4. Canada: $145.4 billion (8.4% of GDP)
  5. Australia: $133.5 billion (9.7% of GDP)

In the United States, President Trump announced that the $2 trillion American relief package was “twice as large” as any prior program. This program provided $1,200 to qualifying Americans to cover costs incurred by the pandemic and subsequent economic slowdown. However, there are significant logistical challenges, including the reality that taxpayers who haven’t set up their IRS direct deposit may not receive their check for months.

The Australian government has made a commitment to provide wage subsidies of A$1,500 every two weeks per employee. 

Canada has also guaranteed a direct payment option to its citizens, which is equal to $2,000 every four weeks for up to 16 weeks for all workers affected by the pandemic. The program is part of Canada’s C$52 billion ($36.62 billion) program, which was doubled from an initial C$27 billion program.

Germany and other European countries were also quick to pass their own economic stimulus programs, including a promise from the European Central Bank (ECB) to spend over 1 trillion euros on Eurozone bonds over the next nine months. If you need help navigating the complicated world of stimulus packages and taxes, please contact a representative at Milikowsky Tax Law today!

If your organization is looking to reduce overall tax costs, control information technology expenses, and redirect internal resources to more strategic activities, co-sourcing to a third party might be the right decision for your team. Utilizing a third party, like Milikowsky Tax Law, will also give your organization the ability to leverage our considerable and ongoing investments in the necessary talent and technology to keep pace with an ever-changing world. Contact us today to learn more!

Filed Under: Blog, COVID-19, News Tagged With: Accounting, Economy, Tax Preparation

Archives

Search

Categories

Questions About
Tax Audit/Controversies?

A representative will be in contact within 1 business day
PRIVACY POLICY

Get Monthly Updates on Important Tax Law Matters



Milikowsky Tax Law is located at: 4250 Executive Square, Ste. 650, La Jolla, CA 92037
o. (858) 450-1040 | m. (858) 212-0542 |
Privacy Policy

DISCLAIMER:
The information on this website is for general information purposes only. Nothing on this site should be taken as legal advice for any individual case or situation. This information is not intended to create, and receipt or viewing does not constitute, an attorney-client relationship.

Milikowsky Tax Law © All Rights Reserved. Clear1099.com | Cal1099.com | California1099.com © All Rights Reserved.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Cookie settingsACCEPT
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Non-necessary
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
SAVE & ACCEPT