Are Cruise Lines Going to Get a Bailout?
The $2 trillion stimulus bill passed Friday, March 27, 2020, in response to COVID-19. Will the cruise lines, who are undoubtedly losing massive amounts of business right now get bailed out?
Probably not. Did you know most cruise lines do not pay federal income tax in the U.S.? That’s because most cruise lines do not incorporate or domesticate in the U.S. If they did, they would pay a lot more federal income tax to the U.S.
For example, according to this article, Carnival would have to pay approximately $600 million in corporate taxes for 2019 if it was domesticated in the U.S.
Accordingly, the cruise lines will not be included in the bailout to the extent they are not domesticated in the U.S. It makes sense… for once.
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