McConnell unveils GOP economic rescue plan

WASHINGTON — Senate Majority Leader Mitch McConnell unveiled a sweeping economic rescue plan Thursday to pump $1,200 direct checks to taxpayers, $300 billion for small businesses to keep idled workers on payroll and $208 billion in loans to airlines and other industries.

It’s the initial Republican offer on the biggest legislative package yet to respond to the coronavirus outbreak.

The GOP leader’s effort builds on President Donald Trump’s request for Congress to “go big” as lawmakers race to craft a $1 trillion economic aid and stimulus package amid the pandemic crisis that’s hurtling the country toward a likely recession.

The 247-page McConnell CARES Act puts the leader’s imprint on an opening talks with Democrats in Congress as lawmakers prepare to work through the weekend to fast-track perhaps the biggest legislative undertaking since the 2008 financial crisis. Negotiations start Friday.

Under the GOP leader’s plan, one-time $1,200 stipends would be sent to individuals — $2,400 for couples — phased out at income thresholds of $75,000 for individuals and $150,000 per couple. Additionally, there would be $500 payments for each child.

Individuals and families could also make penalty-free withdrawals of up to $100,000 from their tax-deferred 401(k) retirement funds. The plan would also loosen tax rules on charitable giving.

Additionally, the McConnell bill would provide $300 billion to small businesses, with loans that would eventually be forgiven for employers who use them to meet payroll expenses.

To shore up industry, McConnell’s plan would provide $208 billion in loans and loan guarantees to distressed sectors, including $50 billion for commercial airlines, $8 billion for air cargo carriers and $150 billion for other eligible businesses, but those loans would have to be paid back.

Businesses would also be allowed to defer payment of the 6.2 percent employer payroll tax, and receive more generous rules for business deductions of losses and interest costs, under the GOP leader’s plan.

Trump administration officials, including Treasury Secretary Steven Mnuchin and economic adviser Larry Kudlow, are expected to return to Capitol Hill on Friday to launch bipartisan negotiations with Senate Democrats.