WASHINGTON (AP) — The nation’s largest business organization is asking government leaders to act rapidly to help companies have access to cash and avert a “potentially devastating” hit to the economy as the coronavirus pandemic forces closures and quarantines worldwide.
In a letter to President Donald Trump and congressional leaders, the U.S. Chamber of Commerce called for legislation including a three-month cancellation of the taxes companies pay to support Social Security, Medicare and unemployment insurance.
They also recommended an easing of restrictions on loans for businesses that employ less than 500 workers and an expanded system of loans and loan guarantees for larger companies.
The chamber said in a statement accompanying the letter that acting quickly could “mitigate the potentially devastating economic effects” of the virus’ spread.
In the letter, Chamber CEO Thomas J. Donohue said his organization considers the crisis “a temporary event” and said it expects that much business activity that’s halted now will occur after the virus eases.
Nonetheless, Donohue wrote, “No family and no business should go bankrupt just because of the temporary disruption in income caused by the coronavirus.”
The letter did not specify the overall cost of the chamber’s requests, but said that halting businesses’ payments of payroll taxes would cost over $100 billion per month.
A top executive with the group said the price tag on business loans were hard to estimate because of unknowns that include the length and severity of the economic downturn.
The House last week approved a relief measure aimed chiefly at workers that included free coronavirus testing and paid sick leave. The Senate is expected to turn to that legislation this week.