Cruise companies paid an average tax rate of less than 1%, well below the mandated 21% corporate tax rate in the U.S.
Trump said though its very hard to consider making them eligible for loans, he noted they do employ many people and promote economic activity.
While the package - the largest funding bill in USA history - should help struggling airlines and hotel businesses, cruise lines that have virtually stopped sailing, including Carnival, Royal Caribbean and Norwegian, do not seem to be able to benefit from loans or relief. subsidies. According to the Cruise Lines International Association, the cruise industry annually contributes almost $53 billion to the USA economy. They do pay state income taxes and port fees, according to The Wall Street Journal. (CCL), which owns the Princess cruise lines, is incorporated in Panama; while Royal Caribbean Cruises (RCL) is incorporated in Liberia, Africa; and Norwegian Cruise Lines (NCLH) in domiciled in Bermuda.
Rep. Hakeem Jefferies (D-N.Y.), Chairman of the House Democratic Caucus and Member of the Judiciary and Budget Committees, tweeted: "The major cruise lines sail under foreign flags to avoid paying the USA corporate tax rate - now some want the American taxpayer to bail them out? Get". Getting a loan guarantee would be helpful, Carnival chief executive Arnold Donald said recently on HBO.
"It's very hard to make a loan to a company when they are based in a different country", Trump said.
The decision to halt cruises until the COVID-19 threat was under control, began a downward economic spiral for Bahamian business owners who relied heavily on thousands of cruise passengers daily for their livelihoods.
When asked about the USA funding bill, Royal Caribbean directed reporters to a March 23 press release that said the company had "entered into a $ 2.24 billion, 364 day guaranteed term loan facility.", thereby improving its liquidity position.
The Cruise Lines International Association (CLIA) applauded the stimulus package Thursday thanks to its inclusion of relief for more than 30,000 CLIA travel agent members.
The cruise line is also working on ending any current voyages which had already departed before the time of suspension. "We continue to take decisive actions to protect the company's financial and liquidity positions as they enable us to keep focused on our guests, our crew and our long-term plans".
"We are grateful that they will receive support as a result of this bill", she said. Jackie Speier (D-Hillsborough) and John Garamendi (D-Walnut Grove) wrote to House Speaker Nancy Pelosi (D-San Francisco) and Majority Leader Steny Hoyer (D-Md.) on Monday, urging that strong conditions be included in the package before any aid is offered to cruise lines. The cruise line business is very important.