NEW: Republicans' $1T stimulus is being held up over competing ideas for replacing unemployment insurance, GOP officials tell me & @ericawerner
Tl;dr -- Some in GOP want complex "wage replacement" scheme -- others warn states cannot pull this off
washingtonpost.com/business/2020/…
Tl;dr -- Some in GOP want complex "wage replacement" scheme -- others warn states cannot pull this off
washingtonpost.com/business/2020/…
To sum up the split:
GOP plan 1: Cut $600/week benefit to $200/week; keep $200/week likely through 2020
GOP plan 2: Cut $600/week to $200/week for several weeks - then replace bonus w/ individualized "wage replacement" based on 70% of prior income
washingtonpost.com/business/2020/…
GOP plan 1: Cut $600/week benefit to $200/week; keep $200/week likely through 2020
GOP plan 2: Cut $600/week to $200/week for several weeks - then replace bonus w/ individualized "wage replacement" based on 70% of prior income
washingtonpost.com/business/2020/…
Plan 1:
GOP says they want "70 percent replacement" -- ie, workers get from UI 70% of what they had been earning
Currently, states provide ~45% of prior income. W/ a federal bonus of ~$200/week -- way down from current $600 -- UI would replace ~70% on average for typical worker
GOP says they want "70 percent replacement" -- ie, workers get from UI 70% of what they had been earning
Currently, states provide ~45% of prior income. W/ a federal bonus of ~$200/week -- way down from current $600 -- UI would replace ~70% on average for typical worker
Some in GOP dont like Plan 1
The issue: Flat $200/week federal bonus doenst reflect differences in prior income. Ppl could still earn more on UI than they had been
Where Plan 2 emerges
Plan 2: Have feds kick in 50% of the ~45% kicked in by state -- gets you to ~70%, targeted
The issue: Flat $200/week federal bonus doenst reflect differences in prior income. Ppl could still earn more on UI than they had been
Where Plan 2 emerges
Plan 2: Have feds kick in 50% of the ~45% kicked in by state -- gets you to ~70%, targeted
Big potential problems here
Most significant: States have had *enormous* difficulty w/ simple flat $600 bonus from feds
Sen. Wyden says Trump's labor secretary has said it can't be done
Think states are struggling to disburse UI benefits now?
Most significant: States have had *enormous* difficulty w/ simple flat $600 bonus from feds
Sen. Wyden says Trump's labor secretary has said it can't be done
Think states are struggling to disburse UI benefits now?
Economists, Dems say cutting the benefit from $600 to $200 would spell disaster for +20 million ppl on UI & the broader economy
@ernietedeschi warns the attempt to target at 70% could exacerbate the situation as already overwhlemed state UI offices struggle to make the change
@ernietedeschi warns the attempt to target at 70% could exacerbate the situation as already overwhlemed state UI offices struggle to make the change
What if states can't make the shift? If the $200 bonus is not enough?
White House Chief of Staff Mark Meadows said the difference would be made up by the $1,200 payments
Treasury Secretary Mnuchin added: "There's plenty of banks that are willing to extend credit to people"
White House Chief of Staff Mark Meadows said the difference would be made up by the $1,200 payments
Treasury Secretary Mnuchin added: "There's plenty of banks that are willing to extend credit to people"
