Help considered for ailing industries

White House may defer taxes for cruise, travel, airline, other affected sectors.

WASHINGTON — White House economic adviser Larry Kudlow said Friday the administration may propose “timely and targeted” federal interventions to help workers, firms and industries hurt by the coronavirus, as fears mount over the growing economic impact of the spreading outbreak in the U.S.

White House officials are considering deferring taxes for industries hurt by the coronavirus outbreak, including the cruise, travel and airline industries, among other things, two people briefed on the discussions said. The talks remain fluid and preliminary.

His comments were the most definitive a White House official had made so far about offering government assistance to companies that had been adversely impacted. For several weeks, White House officials had mostly minimized the economic impact of the outbreak and said it would be short-lived.

Speaking on CNBC and Fox Business, Kudlow rejected suggestions of a larger stimulus package in part because he claimed that the virus is largely “contained” and the U.S. economy remains strong.

But Kudlow said Friday the U.S. government may provide help to certain sectors, such as the hospitality and airline industries. The federal government may also step in and help people in certain parts of the country forced to stay at home because of coronavirus, as well as small business who may need “cash flow” help amid the outbreak, according to Kudlow.

Kudlow didn’t specify what types of assistance the government could offer.

White House officials, including Kudlow, have been accused of trying to minimize the danger of coronavirus to stabilize the markets and the economy.

Some experts, such as Obama administration economist Jason Furman, have called for wider rebate payments to boost the economy. Kudlow rejected that approach.

“I don’t think we should be ... throwing cash in these short-term rebate kind of models that have never worked in the past,” Kudlow said.

He added on CNBC: “I would still argue to you that this thing is contained.”

Larry Kudlow