My Authors
Read all threads
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…
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…
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
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
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?
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
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"
Missing some Tweet in this thread? You can try to force a refresh.

Keep Current with Jeff Stein

Profile picture

Stay in touch and get notified when new unrolls are available from this author!

Read all threads

This Thread may be Removed Anytime!

Twitter may remove this content at anytime, convert it as a PDF, save and print for later use!

Try unrolling a thread yourself!

how to unroll video

1) Follow Thread Reader App on Twitter so you can easily mention us!

2) Go to a Twitter thread (series of Tweets by the same owner) and mention us with a keyword "unroll" @threadreaderapp unroll

You can practice here first or read more on our help page!

Follow Us on Twitter!

Did Thread Reader help you today?

Support us! We are indie developers!

This site is made by just two indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3.00/month or $30.00/year) and get exclusive features!

Become Premium

Too expensive? Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal Become our Patreon

Thank you for your support!