thefiscaltimes--2020-06-30--Tax Day Won’t Be Postponed Again, Treasury and IRS Say

The Treasury Department and Internal Revenue Service announced late Monday that the July 15 tax-filing deadline , pushed back from April 15 due to the coronavirus pandemic , will not be postponed again .
They said taxpayers who can ’ t meet the deadline can still file for an automatic extension until October 15 as usual , though that extension applies only to filing a return , not to paying any taxes due .
“ After consulting with various external stakeholders , we have decided to have taxpayers request an extension if more time is needed , ” Treasury Secretary @ @ @ @ @ @ @ “ I would encourage Americans to file their taxes as soon as possible , so those who are due refunds can receive them quickly.
” The IRS encouraged people who can not pay in full , including those affected by Covid-19 , to pay what they can now to avoid additional interest and penalties and explore other payment options available , including those on the IRS website , for the balance .
The IRS said that , as of June 19 , it had received more than 138 million returns , down 4.4 @ @ @ @ @ @ @ nearly 127 million of those filings , down 11.4 % from last year .
The number of refunds issued , more than 93 million , was down by nearly 11 % while the total amount of those refunds — some $ 258 billion — was down about 10 % .

The Treasury Department and Internal Revenue Service announced late Monday that the July 15 tax-filing deadline, pushed back from April 15 due to the coronavirus pandemic, will not be postponed again. They said taxpayers who can’t meet the deadline can still file for an automatic extension until October 15 as usual, though that extension applies only to filing a return, not to paying any taxes due.
“After consulting with various external stakeholders, we have decided to have taxpayers request an extension if more time is needed,” Treasury Secretary Steven Mnuchin said in a statement. “I would encourage Americans to file their taxes as soon as possible, so those who are due refunds can receive them quickly.”
The IRS encouraged people who cannot pay in full, including those affected by Covid-19, to pay what they can now to avoid additional interest and penalties and explore other payment options available, including those on the IRS website, for the balance.
The IRS said that, as of June 19, it had received more than 138 million returns, down 4.4% from 2019, and had processed nearly 127 million of those filings, down 11.4% from last year. The number of refunds issued, more than 93 million, was down by nearly 11% while the total amount of those refunds — some $258 billion — was down about 10%.


thefiscaltimes--2020-06-30--With PPP Ending, Lawmakers Eye Ways to Repurpose $130 Billion Left Over

The emergency coronavirus relief program for small businesses is set to stop accepting new applications just before midnight , having approved about $ 520 billion in forgivable loans as of Monday — but leaving more than $ 130 billion in funding left untapped .
Lawmakers are considering how to repurpose the remaining money from the expiring Paycheck Protection Program to deliver more aid to businesses .
The Washington Post reports : “ Sens .
Marco Rubio ( R-Fla. ) and Ben Cardin ( D-Md . )
are leading a group considering how best to use the remaining funds to help @ @ @ @ @ @ @ .
The issue is not expected to be resolved , however , until the Senate gets to work in late July on what Majority Leader Mitch McConnell ( R-Ky. ) has said will be the final major coronavirus relief bill.
” Treasury Secretary Steven Mnuchin said Tuesday that the Trump administration supports the idea of using the money to help businesses hit hardest by the pandemic , including restuarants and hotels .
`` I ’ ve already had conversations with the SBA committee in the Senate about re-purposing that $ 135 billion and @ @ @ @ @ @ @ look forward to working with both the House and the Senate so we can pass legislation by the end of July , ” Mnuchin said , according to the Post .
A draft copy of Rubio-led legislation obtained by the Post would expand the possible uses for the money and would dedicate $ 25 billion to businesses with fewer than 10 employees .
It would also prevent hotel and restaurant chains from receiving more than $ 2 million .
Democrats , meanwhile , have proposed extending the application deadline by six months and @ @ @ @ @ @ @ 100 or fewer employees and those hurt most by the virus .
Rubio said that there may be better ways to use the money than extending the current PPP program , which , despite a chaotic rollout and frustration from some borrowers and lenders , has provided money to nearly 5 million businesses and helped mitigate or reverse some of the labor market devastation caused by the pandemic shutdowns .
“ PPP has been widely successful .
There are more companies that could benefit from it .
It would be great if extending @ @ @ @ @ @ @ my sense is the greater need right now is in companies that have received that assistance but now need new or different kinds of assistance , ” he told the Post .
Why it matters : “ Small businesses employ about half of America ’ s nongovernment workers , and a fresh wave of deep reductions or permanent closures would quickly cascade through the national economy , ” Stacy Cowley writes at The New York Times .
“ The pain would be even more acute in hard-hit industries , like the service sector @ @ @ @ @ @ @ small employers.
” Read more at The Washington Post or The New York Times .

The emergency coronavirus relief program for small businesses is set to stop accepting new applications just before midnight, having approved about $520 billion in forgivable loans as of Monday — but leaving more than $130 billion in funding left untapped.
Lawmakers are considering how to repurpose the remaining money from the expiring Paycheck Protection Program to deliver more aid to businesses. The Washington Post reports:
“Sens. Marco Rubio (R-Fla.) and Ben Cardin (D-Md.) are leading a group considering how best to use the remaining funds to help small businesses as they begin to reopen. The issue is not expected to be resolved, however, until the Senate gets to work in late July on what Majority Leader Mitch McConnell (R-Ky.) has said will be the final major coronavirus relief bill.”
Treasury Secretary Steven Mnuchin said Tuesday that the Trump administration supports the idea of using the money to help businesses hit hardest by the pandemic, including restuarants and hotels. "I’ve already had conversations with the SBA committee in the Senate about re-purposing that $135 billion and think that should be done, and look forward to working with both the House and the Senate so we can pass legislation by the end of July,” Mnuchin said, according to the Post.
A draft copy of Rubio-led legislation obtained by the Post would expand the possible uses for the money and would dedicate $25 billion to businesses with fewer than 10 employees. It would also prevent hotel and restaurant chains from receiving more than $2 million.
Democrats, meanwhile, have proposed extending the application deadline by six months and targeting the new funds to businesses with 100 or fewer employees and those hurt most by the virus.
Rubio said that there may be better ways to use the money than extending the current PPP program, which, despite a chaotic rollout and frustration from some borrowers and lenders, has provided money to nearly 5 million businesses and helped mitigate or reverse some of the labor market devastation caused by the pandemic shutdowns.
“PPP has been widely successful. There are more companies that could benefit from it. It would be great if extending the deadline would help them. But my sense is the greater need right now is in companies that have received that assistance but now need new or different kinds of assistance,” he told the Post.
Why it matters: “Small businesses employ about half of America’s nongovernment workers, and a fresh wave of deep reductions or permanent closures would quickly cascade through the national economy,” Stacy Cowley writes at The New York Times. “The pain would be even more acute in hard-hit industries, like the service sector, and communities that disproportionately rely on small employers.”
Read more at The Washington Post or The New York Times.


thefiscaltimes--2020-07-02--The Decline of the IRS

The Decline of the IRS

ProPublica has been documenting what it calls “ the descent of the IRS ” over the last decade as the agency struggles with budget cuts and hostility from lawmakers .
In a report Thursday , the independent news organization says that the latest data from the IRS point to “ historic lows for U.S. tax enforcement.
” Reviewing the IRS ’ s annual release of enforcement statistics , ProPublica highlights some interesting data points : • In 2019 , the IRS reported “ the lowest audit rate in generations.
” • Revenues from audits fell to $ 11 billion in @ @ @ @ @ @ @ $ 28 billion collected in 2010 .
• Expiring debt – payments owed to the IRS but not yet collected – totaled $ 6.7 billion in 2019 , up from $ 564 million in 2010 .
• Enforcement staff has been cut by 36 % since 2010 .
• Audit rates for the wealthy have fallen to 2.4 % , down from 12.5 % in 2011 .
Sen. Ron Wyden ( D-OR ) , who has opposed budget cuts at the IRS , said the data reaffirms the need to beef up the @ @ @ @ @ @ @ “ It ’ s a national scandal that the wealthy are stealing tens of billions from American taxpayers , ” he told ProPublica .
“ Paying taxes has become increasingly voluntary for those at the top .
… The IRS needs to tackle this challenge head on , and one of my top priorities if Democrats take control of the Senate will be to rebuild the IRS.
” For more details , see the ProPublica analysis here .

ProPublica has been documenting what it calls “the descent of the IRS” over the last decade as the agency struggles with budget cuts and hostility from lawmakers. In a report Thursday, the independent news organization says that the latest data from the IRS point to “historic lows for U.S. tax enforcement.”
Reviewing the IRS’s annual release of enforcement statistics, ProPublica highlights some interesting data points:
In 2019, the IRS reported “the lowest audit rate in generations.”
Revenues from audits fell to $11 billion in 2019 – down 61% from the $28 billion collected in 2010.
Expiring debt – payments owed to the IRS but not yet collected – totaled $6.7 billion in 2019, up from $564 million in 2010.
Enforcement staff has been cut by 36% since 2010.
Audit rates for the wealthy have fallen to 2.4%, down from 12.5% in 2011.
Sen. Ron Wyden (D-OR), who has opposed budget cuts at the IRS, said the data reaffirms the need to beef up the tax agency’s enforcement capabilities. “It’s a national scandal that the wealthy are stealing tens of billions from American taxpayers,” he told ProPublica. “Paying taxes has become increasingly voluntary for those at the top. … The IRS needs to tackle this challenge head on, and one of my top priorities if Democrats take control of the Senate will be to rebuild the IRS.”
For more details, see the ProPublica analysis here.


thefiscaltimes--2020-07-01--Small Business Relief Program Gets a Surprise Extension

The Senate passed an unexpected extension of the Paycheck Protection Program Tuesday night , just a few hours before the $ 660 billion effort to aid small businesses was scheduled to cease receiving applications .
The House approved the last-minute bill Wednesday , and if President Trump signs it as expected business owners will have until August 8 to apply for forgivable loans through the program .
The extension itself may not have a significant effect on participation in the loan program , however .
While the PPP has approved about $ 520 billion in loans for nearly 5 million @ @ @ @ @ @ @ 130 billion has gone unclaimed , and applications have slowed to a trickle in the last few weeks .
One problem for the program has been its requirement that the majority of the borrowed funds be used for payroll expenses in order for the loans to be converted to grants , a condition many small business owners such as restaurateurs fear they may not be able to satisfy .
While the extension , which required the agreement of all 100 senators , may not have a significant effect in the short run , @ @ @ @ @ @ @ about providing more aid for small businesses .
Treasury Secretary Steven Mnuchin said this week that he was looking into the possibility of reprogramming any remaining PPP funds to help businesses in other ways .
Whatever the mechanism , senators made it clear that they want to include new federal aid for small businesses in the next stimulus package , which could come up for a vote later this month .

The Senate passed an unexpected extension of the Paycheck Protection Program Tuesday night, just a few hours before the $660 billion effort to aid small businesses was scheduled to cease receiving applications. The House approved the last-minute bill Wednesday, and if President Trump signs it as expected business owners will have until August 8 to apply for forgivable loans through the program.
The extension itself may not have a significant effect on participation in the loan program, however. While the PPP has approved about $520 billion in loans for nearly 5 million small businesses so far, another $130 billion has gone unclaimed, and applications have slowed to a trickle in the last few weeks.
One problem for the program has been its requirement that the majority of the borrowed funds be used for payroll expenses in order for the loans to be converted to grants, a condition many small business owners such as restaurateurs fear they may not be able to satisfy.
While the extension, which required the agreement of all 100 senators, may not have a significant effect in the short run, it does signal that lawmakers are serious about providing more aid for small businesses. Treasury Secretary Steven Mnuchin said this week that he was looking into the possibility of reprogramming any remaining PPP funds to help businesses in other ways. Whatever the mechanism, senators made it clear that they want to include new federal aid for small businesses in the next stimulus package, which could come up for a vote later this month.


thefiscaltimes--2020-07-01--$1.5 Trillion Infrastructure Plan Is DOA: McConnell

A $ 1.5 trillion infrastructure bill is expected to get a vote in the House Wednesday , but according to Senate Majority Leader Mitch McConnell ( R-KY ) , the effort is for naught .
`` So naturally this nonsense is not going anywhere in the Senate .
It will just join the list of absurd House proposals that were only drawn up to show fealty to the radical left , '' McConnell said Wednesday .
The White House also said it opposes the bill , saying Tuesday that it is “ not a serious proposal ” and “ entirely @ @ @ @ @ @ @ increases in spending for roads and bridges , clean water , rural broadband , public housing , schools , hospitals and clean energy .
Democrats have not addressed how they plan to pay for the bill , but House Speakers Nancy Pelosi ( D-CA ) recently said that “ with the interest rates where they are now there 's never been a better time for us to go big.
” Pelosi also said she didn ’ t expect McConnell to embrace the legislation .
“ As you know , the Grim Reaper said @ @ @ @ @ @ @ the Senate , ” Pelosi said , using a nickname the senator has given himself .
“ But there is tremendous interest in the country in building the infrastructure .
”

A $1.5 trillion infrastructure bill is expected to get a vote in the House Wednesday, but according to Senate Majority Leader Mitch McConnell (R-KY), the effort is for naught.
"So naturally this nonsense is not going anywhere in the Senate. It will just join the list of absurd House proposals that were only drawn up to show fealty to the radical left," McConnell said Wednesday.
The White House also said it opposes the bill, saying Tuesday that it is “not a serious proposal” and “entirely debt-financed.”
The infrastructure package includes substantial increases in spending for roads and bridges, clean water, rural broadband, public housing, schools, hospitals and clean energy. Democrats have not addressed how they plan to pay for the bill, but House Speakers Nancy Pelosi (D-CA) recently said that “with the interest rates where they are now there's never been a better time for us to go big.”
Pelosi also said she didn’t expect McConnell to embrace the legislation. “As you know, the Grim Reaper said nothing is ever going any place in the Senate,” Pelosi said, using a nickname the senator has given himself. “But there is tremendous interest in the country in building the infrastructure.”


thefiscaltimes--2020-07-01--Dems Want to Extend $600 Unemployment Boost. GOP Has Other Ideas.

The $ 600-a-week federal boost to unemployment insurance introduced by Congress in March is set to expire this month , and the debate about whether or how to extend jobless benefits will be central to negotiations on a next coronavirus relief bill — negotiations that are likely to be difficult , with Democrats and Republicans deeply divided .
Here ’ s the latest : Senate Democrats propose “ automatic stabilizers ” : Senate Democrats on Wednesday introduced legislation called the American Workforce Rescue Act to extend the weekly benefit increase and tie it to state unemployment levels .
The $ @ @ @ @ @ @ @ a state ’ s three-month average unemployment rate falls below 11 % .
The benefit boost would then phase out after 13 weeks , falling by $ 100 for each percentage point decrease in the unemployment rate until the rate drops below 6 percent .
The bill would also continue a 13-week extension of unemployment benefits through March and then tie the extension to state unemployment rates , with additional 13-week extensions for each percentage point the unemployment rate rises above 5.5 % .
It would similarly extend the unemployment coverage Congress created @ @ @ @ @ @ @ who aren ’ t eligible for traditional unemployment through March 27 , 2021 , after which the benefits are tied to state unemployment levels .
“ If we fail to renew the $ 600 per week increase in UI , millions of American families will have their legs cut out from underneath them at the worst possible time—in the middle of a pandemic when unemployment is higher than it 's been since the Great Depression , ” Schumer said in a statement .
“ The American Workforce Rescue Act would tie the extension @ @ @ @ @ @ @ politics .
As the need goes down , so will the benefits .
As the need goes up , so will the benefits.
” Republicans say no to extending the $ 600 payments : The Democratic-led House in May passed legislation that would extend the $ 600 weekly payments through January , but the Senate Democrats ’ proposal represents a new marker for negotiations with Republicans , who remain staunchly opposed to extending the payments as currently structured , insisting that they create an incentive for workers to stay away from their jobs @ @ @ @ @ @ @ more on unemployment than they did at work .
`` You 'd make more money if you do n't go to work , '' President Trump told Fox Business Network in an interview Wednesday , apparently referring to the enhanced unemployment benefits even though he was asked about additional stimulus payments .
`` We do n't want to have that .
We want to have people get out , and we want to create a tremendous incentive for people to want to go back to work . ''
Senate Majority Leader Mitch McConnell @ @ @ @ @ @ @ that the $ 600 payments wo n't be in the next phase of coronavirus relief , according to NBC News .
`` Unemployment is extremely important .
And we need to make sure , for those who are not able to recover their jobs , unemployment is adequate , '' McConnell told reporters on Tuesday .
`` That is a different issue from whether we ought to pay people a bonus not to go back to work .
And so I think that was a mistake . ''
The Congressional Budget Office projected @ @ @ @ @ @ @ unemployment payments was extended for six months , about five in six recipients would get benefits that exceeded what they could expect to earn at work — and that economic output over the second half of the year would be higher and spending by those workers would be closer to normal than if the benefits weren ’ t extended .
Some Senate Republicans and Trump administration officials have supported the idea of return-to-work bonuses .
But NBC News reports that in interviews with nearly a dozen GOP senators on Tuesday “ one consistent @ @ @ @ @ @ @ do n't want to extend the $ 600 per week in emergency jobless compensation because they widely agree that it is motivating people to stay out of work .
But they have little clarity on what ought to replace it.
” Schumer on Tuesday pushed back on the GOP bonus idea .
“ The back-to-work bonus pays people who are working .
What about the people who are unemployed and can ’ t get back to work ?
” he said .
“ I don ’ t get it , it ’ s @ @ @ @ @ @ @ people who are unemployed , back-to-work bonus doesn ’ t solve that problem.
” Why it matters , part 1 : The automatic stabilizers in the new Schumer-Wyden proposal “ would address a pernicious problem Democrats have faced as they ’ ve tried to extend the unemployment boost : The need to continually renegotiate benefits in the face of the pandemic ’ s ever-changing economic outlook , ” writes Kara Voght at Mother Jones .
Given GOP opposition , the bill likely won ’ t pass Congress , but Voght says “ it @ @ @ @ @ @ @ embracing automatic stabilizers , which have been championed mostly by progressive economists and lawmakers.
” Why it matters , part 2 : The unemployment benefit boost has provided a crucial safety net , offsetting lost income for millions of workers laid off of furloughed during the pandemic .
The national unemployment rate remains above 13 % and some 30 million Americans are collecting unemployment benefits of some sort .
Nebraska ( 5.2 % ) was the only state with a May unemployment rate below 8.5 % , while 33 states had rates of @ @ @ @ @ @ @ states — Michigan , Hawaii and Nevada — were above 20 % .
Economists worry that without some extension of emergency unemployment benefits , incomes would plunge — and spending vital to the economy would follow .

The $600-a-week federal boost to unemployment insurance introduced by Congress in March is set to expire this month, and the debate about whether or how to extend jobless benefits will be central to negotiations on a next coronavirus relief bill — negotiations that are likely to be difficult, with Democrats and Republicans deeply divided. Here’s the latest:
Senate Democrats propose “automatic stabilizers”: Senate Democrats on Wednesday introduced legislation called the American Workforce Rescue Act to extend the weekly benefit increase and tie it to state unemployment levels.
The $600 increase would stay in place until a state’s three-month average unemployment rate falls below 11%. The benefit boost would then phase out after 13 weeks, falling by $100 for each percentage point decrease in the unemployment rate until the rate drops below 6 percent.
The bill would also continue a 13-week extension of unemployment benefits through March and then tie the extension to state unemployment rates, with additional 13-week extensions for each percentage point the unemployment rate rises above 5.5%. It would similarly extend the unemployment coverage Congress created for self-employed, gig workers and others who aren’t eligible for traditional unemployment through March 27, 2021, after which the benefits are tied to state unemployment levels.
“If we fail to renew the $600 per week increase in UI, millions of American families will have their legs cut out from underneath them at the worst possible time—in the middle of a pandemic when unemployment is higher than it's been since the Great Depression,” Schumer said in a statement. “The American Workforce Rescue Act would tie the extension of enhanced UI benefits to economic data—not politics. As the need goes down, so will the benefits. As the need goes up, so will the benefits.”
Republicans say no to extending the $600 payments: The Democratic-led House in May passed legislation that would extend the $600 weekly payments through January, but the Senate Democrats’ proposal represents a new marker for negotiations with Republicans, who remain staunchly opposed to extending the payments as currently structured, insisting that they create an incentive for workers to stay away from their jobs — particularly low-income employees who are making more on unemployment than they did at work.
"You'd make more money if you don't go to work," President Trump told Fox Business Network in an interview Wednesday, apparently referring to the enhanced unemployment benefits even though he was asked about additional stimulus payments. "We don't want to have that. We want to have people get out, and we want to create a tremendous incentive for people to want to go back to work."
Senate Majority Leader Mitch McConnell (R-KY) also said this week that the $600 payments won't be in the next phase of coronavirus relief, according to NBC News. "Unemployment is extremely important. And we need to make sure, for those who are not able to recover their jobs, unemployment is adequate," McConnell told reporters on Tuesday. "That is a different issue from whether we ought to pay people a bonus not to go back to work. And so I think that was a mistake."
The Congressional Budget Office projected last month that if the increase in unemployment payments was extended for six months, about five in six recipients would get benefits that exceeded what they could expect to earn at work — and that economic output over the second half of the year would be higher and spending by those workers would be closer to normal than if the benefits weren’t extended.
Some Senate Republicans and Trump administration officials have supported the idea of return-to-work bonuses. But NBC News reports that in interviews with nearly a dozen GOP senators on Tuesday “one consistent theme emerged: They are certain they don't want to extend the $600 per week in emergency jobless compensation because they widely agree that it is motivating people to stay out of work. But they have little clarity on what ought to replace it.”
Schumer on Tuesday pushed back on the GOP bonus idea. “The back-to-work bonus pays people who are working. What about the people who are unemployed and can’t get back to work?” he said. “I don’t get it, it’s illogical. If unemployment insurance is supposed people who are unemployed, back-to-work bonus doesn’t solve that problem.”
Why it matters, part 1: The automatic stabilizers in the new Schumer-Wyden proposal “would address a pernicious problem Democrats have faced as they’ve tried to extend the unemployment boost: The need to continually renegotiate benefits in the face of the pandemic’s ever-changing economic outlook,” writes Kara Voght at Mother Jones. Given GOP opposition, the bill likely won’t pass Congress, but Voght says “it’s significant that Democratic leadership is embracing automatic stabilizers, which have been championed mostly by progressive economists and lawmakers.”
Why it matters, part 2: The unemployment benefit boost has provided a crucial safety net, offsetting lost income for millions of workers laid off of furloughed during the pandemic. The national unemployment rate remains above 13% and some 30 million Americans are collecting unemployment benefits of some sort. Nebraska (5.2%) was the only state with a May unemployment rate below 8.5%, while 33 states had rates of 10% or higher, including three states — Michigan, Hawaii and Nevada — were above 20%. Economists worry that without some extension of emergency unemployment benefits, incomes would plunge — and spending vital to the economy would follow.


thefiscaltimes--2020-06-30--National Face Mask Mandate Could Prevent 5% GDP Hit, Goldman Sachs Says

The widespread use of face masks is a simple and low-cost way to slow the spread of the coronavirus , and according the Jan Hatzius , chief economist at Goldman Sachs , a national mandate to wear masks could have a huge positive effect on the economy .
In a note to clients Tuesday , Hatzius and other Goldman economists said a national mandate to wear masks would increase the percentage of people doing so by 15 to 25 percentage points and push the growth rate of the virus down from 1.6 % to about 0.6 % .
A renewed @ @ @ @ @ @ @ at a great economic cost .
“ These calculations imply that a face mask mandate could potentially substitute for lockdowns that would otherwise subtract nearly 5 % from GDP , ” the Goldman team said .
“ It is important to recognize that this estimate is quite uncertain because it is based on a number of statistical relationships that are all measured with error .
Despite the numerical uncertainty , however , our analysis suggests that the economic benefit from a face mask mandate and increased face mask usage could be sizable .
@

The widespread use of face masks is a simple and low-cost way to slow the spread of the coronavirus, and according the Jan Hatzius, chief economist at Goldman Sachs, a national mandate to wear masks could have a huge positive effect on the economy.
In a note to clients Tuesday, Hatzius and other Goldman economists said a national mandate to wear masks would increase the percentage of people doing so by 15 to 25 percentage points and push the growth rate of the virus down from 1.6% to about 0.6%.
A renewed shutdown could have similar effects, but at a great economic cost.
“These calculations imply that a face mask mandate could potentially substitute for lockdowns that would otherwise subtract nearly 5% from GDP,” the Goldman team said. “It is important to recognize that this estimate is quite uncertain because it is based on a number of statistical relationships that are all measured with error. Despite the numerical uncertainty, however, our analysis suggests that the economic benefit from a face mask mandate and increased face mask usage could be sizable.”


thefiscaltimes--2020-07-02--CBO Estimates Damage to US Economy from Coronavirus

The coronavirus crisis will scar the U.S. economy for years to come , according to the updated 10-year outlook from the Congressional Budget Office , released Thursday .
“ The economic outlook for 2020 to 2030 has deteriorated significantly since the agency last published its full baseline economic projections in January , ” the report says .
Here some details from the projections , which assume no further stimulus programs from the federal government : • The unemployment rate will stay above pre-Covid levels through 2030 .
• The average unemployment rate for the 2030 to 2030 period is estimated @ @ @ @ @ @ @ 4.2 % in the pre-Covid estimates .
• At the end of 2020 , the unemployment rate is projected to be 10.5 % .
It is projected to fall to 7.6 % by the end of 2021 , and 6.9 % by the end of 2022 .
• GDP growth will remain below its potential for years , with the output gap totaling more than $ 17 trillion by 2030 relative to the pre-Covid trend .
It ’ s not all bad news , though .
The CBO projects rapid economic growth in @ @ @ @ @ @ @ % annualized growth rate in the second half of 2020 .
Unemployment is projected to peak this summer at 14 % , before falling “ quickly ” at the end of 2020 and through 2021 .
And interest rates will remain low , making it easier to finance the trillions in relief spending that , according to the CBO , has helped prevent the economy from deteriorating further and boosted the recovery .

The coronavirus crisis will scar the U.S. economy for years to come, according to the updated 10-year outlook from the Congressional Budget Office, released Thursday.
“The economic outlook for 2020 to 2030 has deteriorated significantly since the agency last published its full baseline economic projections in January,” the report says. Here some details from the projections, which assume no further stimulus programs from the federal government:
The unemployment rate will stay above pre-Covid levels through 2030.
The average unemployment rate for the 2030 to 2030 period is estimated to be 6.2%, up from 4.2% in the pre-Covid estimates.
At the end of 2020, the unemployment rate is projected to be 10.5%. It is projected to fall to 7.6% by the end of 2021, and 6.9% by the end of 2022.
GDP growth will remain below its potential for years, with the output gap totaling more than $17 trillion by 2030 relative to the pre-Covid trend.
It’s not all bad news, though. The CBO projects rapid economic growth in the third quarter, and a 12.4% annualized growth rate in the second half of 2020. Unemployment is projected to peak this summer at 14%, before falling “quickly” at the end of 2020 and through 2021. And interest rates will remain low, making it easier to finance the trillions in relief spending that, according to the CBO, has helped prevent the economy from deteriorating further and boosted the recovery.


thefiscaltimes--2020-07-08--House Dems Look to Boost Spending by $250 Billion

House Democrats are looking to increase federal spending by about $ 250 billion next year — a boost that would exceed budget levels agreed to in a bipartisan deal reached last year with Republicans and the Trump administration .
The Democratic spending bills introduced by House appropriators this week would bring discretionary spending to more than $ 1.6 trillion , a 16 % increase over current levels , The Hill ’ s Niv Elis reports .
Democrats say the pandemic has raised the need for additional funding , which Elis says would cover areas ranging from rural broadband and transportation @ @ @ @ @ @ @ relief .
Republicans counter that the Democratic proposal will make it harder to reach agreement with the Senate on 2021 spending levels .
“ In any other year , a quarter-trillion dollars tacked onto a series of regular spending bills would be unheard of , ” Elis writes .
“ But the economic emergency caused by the pandemic has turned it into a rounding error , as Congress has approved trillions of dollars to fight COVID-19 , including a record $ 2.2 trillion for the CARES Act in March .
… Even budget @ @ @ @ @ @ @ needed in times like these , with austerity reserved for boom times.
” Still , Marc Goldwein , head of policy for the Committee for a Responsible Federal Budget , warned that the pandemic shouldn ’ t be used as an excuse for non-emergency spending .
“ The emergency designation is there for emergencies , which means things that are urgent , unforeseen and temporary , ” Goldwein told The Hill .
“ The question that I would ask is if the broadband , the housing , is that really in light of @ @ @ @ @ @ @ not appropriate to use an emergency situation for building roads.
” The bottom line : The Democratic proposal may raise the chances that the annual appropriations process gets bogged down in partisan fights .
“ Any long-term standoff between congressional Democrats and Republicans would just increase the odds of Congress kicking the can down the road with a continuing resolution , dealing with spending legislation after the November elections , perhaps even into January , ” Elis writes .

House Democrats are looking to increase federal spending by about $250 billion next year — a boost that would exceed budget levels agreed to in a bipartisan deal reached last year with Republicans and the Trump administration.
The Democratic spending bills introduced by House appropriators this week would bring discretionary spending to more than $1.6 trillion, a 16% increase over current levels, The Hill’s Niv Elis reports.
Democrats say the pandemic has raised the need for additional funding, which Elis says would cover areas ranging from rural broadband and transportation infrastructure to health care and global coronavirus relief. Republicans counter that the Democratic proposal will make it harder to reach agreement with the Senate on 2021 spending levels.
“In any other year, a quarter-trillion dollars tacked onto a series of regular spending bills would be unheard of,” Elis writes. “But the economic emergency caused by the pandemic has turned it into a rounding error, as Congress has approved trillions of dollars to fight COVID-19, including a record $2.2 trillion for the CARES Act in March. … Even budget hawks have acknowledged that deficit spending is needed in times like these, with austerity reserved for boom times.”
Still, Marc Goldwein, head of policy for the Committee for a Responsible Federal Budget, warned that the pandemic shouldn’t be used as an excuse for non-emergency spending. “The emergency designation is there for emergencies, which means things that are urgent, unforeseen and temporary,” Goldwein told The Hill. “The question that I would ask is if the broadband, the housing, is that really in light of the coronavirus emergency? It’s not appropriate to use an emergency situation for building roads.”
The bottom line: The Democratic proposal may raise the chances that the annual appropriations process gets bogged down in partisan fights. “Any long-term standoff between congressional Democrats and Republicans would just increase the odds of Congress kicking the can down the road with a continuing resolution, dealing with spending legislation after the November elections, perhaps even into January,” Elis writes.


thefiscaltimes--2020-07-07--McConnell Opens the Door to More Stimulus Checks, for Some

Senate Majority Leader Mitch McConnell ( R-KY ) on Monday outlined the key elements he ’ d want to have included in the next coronavirus relief bill , opening the door to more direct payments to Americans making up to $ 40,000 a year and again insisting on legal protections for businesses .
McConnell said he would likely release a new bill in a few weeks .
That would be the GOP ’ s starting point for negotiations with Democrats .
Those talks , likely to start after Congress returns from a two-week recess on July 20 , are expected @ @ @ @ @ @ @ ’ t comfortably predict we ’ re going to come together and pass it unanimously like we did a few months ago — the atmosphere is becoming a bit more political than it was in March , ” McConnell said , according to The Washington Post .
“ But I think we will do something again .
I think the country needs one last boost.
” McConnell added that the coronavirus pandemic is clearly not over .
Another round of stimulus checks : McConnell said that the next coronavirus package “ could well @ @ @ @ @ @ @ suggested that the payments would be more narrowly targeted .
“ I think the people who ’ ve been hit the hardest are people who make about $ 40,000 a year or less , ” including many hospitality industry workers , McConnell said .
Liability protections : McConnell guaranteed that the next bill would include liability protections to shield business , hospitals and schools against lawsuits stemming from the coronavirus .
He said the protections would be “ narrowly crafted ” and that he envisions they will cover five years , from December @ @ @ @ @ @ @ such a measure .
The bottom line : Once lawmakers return , they ’ ll have just a few weeks to hammer out a deal before their next recess .
Right now they aren ’ t close .
“ Instead of talking about writing a partisan bill in his office to help big corporations , Sen. McConnell ought to be working across the aisle to prevent mass evictions , a new hunger crisis , and the layoff of more essential state and local government employees , ” Senate Minority Leader Chuck Schumer ( @ @ @ @ @ @ @ and Trump administration officials also face internal divisions on additional relief spending that could make it difficult to reach consensus .
“ I think the key right now is to try and get sort of the White House and Republicans on the Hill in the same place , ” said Sen. John Thune ( R-SD ) , according to the Post .

Senate Majority Leader Mitch McConnell (R-KY) on Monday outlined the key elements he’d want to have included in the next coronavirus relief bill, opening the door to more direct payments to Americans making up to $40,000 a year and again insisting on legal protections for businesses.
McConnell said he would likely release a new bill in a few weeks. That would be the GOP’s starting point for negotiations with Democrats. Those talks, likely to start after Congress returns from a two-week recess on July 20, are expected to be contentious. “I can’t comfortably predict we’re going to come together and pass it unanimously like we did a few months ago — the atmosphere is becoming a bit more political than it was in March,” McConnell said, according to The Washington Post. “But I think we will do something again. I think the country needs one last boost.”
McConnell added that the coronavirus pandemic is clearly not over.
Another round of stimulus checks: McConnell said that the next coronavirus package “could well” include more stimulus checks, but suggested that the payments would be more narrowly targeted. “I think the people who’ve been hit the hardest are people who make about $40,000 a year or less,” including many hospitality industry workers, McConnell said.
Liability protections: McConnell guaranteed that the next bill would include liability protections to shield business, hospitals and schools against lawsuits stemming from the coronavirus. He said the protections would be “narrowly crafted” and that he envisions they will cover five years, from December 2019 through 2024. Democrats have opposed such a measure.
The bottom line: Once lawmakers return, they’ll have just a few weeks to hammer out a deal before their next recess. Right now they aren’t close.
“Instead of talking about writing a partisan bill in his office to help big corporations, Sen. McConnell ought to be working across the aisle to prevent mass evictions, a new hunger crisis, and the layoff of more essential state and local government employees,” Senate Minority Leader Chuck Schumer (D-NY) said Monday.
Congressional Republicans and Trump administration officials also face internal divisions on additional relief spending that could make it difficult to reach consensus. “I think the key right now is to try and get sort of the White House and Republicans on the Hill in the same place,” said Sen. John Thune (R-SD), according to the Post.


thefiscaltimes--2020-07-09--1.3 Million Workers Filed New State Unemployment Claims Last Week

Another 1.3 million Americans filed first-time claims for state unemployment benefits in the week ending July 4 , the Labor Department said Thursday , and 1 million new claims were filed under the federal Pandemic Unemployment Assistance program created to provide federal unemployment insurance to the self-employed , gig workers and others who aren ’ t eligible for traditional benefits .
“ Job losses remain catastrophically bad , ” said Ben Casselman of The New York Times in a tweet .
“ We can debate the best measure to use , but the big picture is the same no matter @ @ @ @ @ @ @ crisis , claims are still higher than in ANY period before this .
And the decline has stalled out.
” The new state unemployment filings were lower than the 1.39 million economists surveyed by Dow Jones had expected and a decrease of 99,000 from the previous week .
The number of new jobless claims has been falling since early April , but remains at levels well above the pre-pandemic record .
“ This is the 16th week in a row that unemployment claims have been more than twice the *worst* week of the @ @ @ @ @ @ @ of the left-leaning Economic Policy Institute tweeted .

Another 1.3 million Americans filed first-time claims for state unemployment benefits in the week ending July 4, the Labor Department said Thursday, and 1 million new claims were filed under the federal Pandemic Unemployment Assistance program created to provide federal unemployment insurance to the self-employed, gig workers and others who aren’t eligible for traditional benefits.
“Job losses remain catastrophically bad,” said Ben Casselman of The New York Times in a tweet. “We can debate the best measure to use, but the big picture is the same no matter what: Nearly four months into this crisis, claims are still higher than in ANY period before this. And the decline has stalled out.”
The new state unemployment filings were lower than the 1.39 million economists surveyed by Dow Jones had expected and a decrease of 99,000 from the previous week. The number of new jobless claims has been falling since early April, but remains at levels well above the pre-pandemic record.
“This is the 16th week in a row that unemployment claims have been more than twice the *worst* week of the Great Recession,” economist Heidi Shierholz of the left-leaning Economic Policy Institute tweeted.


thefiscaltimes--2020-07-02--What the Next Stimulus Package Could Look Like

While serious negotiations on the next possible coronavirus stimulus package won ’ t begin until Congress returns to Washington on July 20 , some analysts think the strong June jobs report may make it easier for Republican lawmakers and the White House to limit its size and scope .
Treasury Secretary Steven Mnuchin signaled that the White House recognizes that the recovery is not complete , saying “ our work is not done ” at Trump ’ s news conference .
But White House adviser Stephen Moore told The Washington Post Thursday that the strong report makes it less likely @ @ @ @ @ @ @ 2 trillion to $ 3 trillion stimulus package along the lines proposed by Democrats .
Moore also said resistance to extending a big boost to unemployment benefits has also probably grown stronger .
Still , some kind of package is likely to move forward .
Bloomberg has a rundown on what the package could include : * More aid for business : Lawmakers are debating another extension for the Paycheck Protection Program , which provides forgivable loans to small businesses , or potentially reprogramming its unused funds – as much as $ 130 @ @ @ @ @ @ @ .
Mnuchin has said that he would like to aid more clearly targeted at businesses that need help .
And the administration continues to push for tax breaks to promote hiring and consumption .
* Unemployment benefits : Democrats want to extend the $ 600 per week boost to unemployment benefits , but Republicans say they want it to end as scheduled at the end of this month , charging that it motivates workers to stay unemployed .
A compromise could be worked out , providing some kind of enhanced benefits at a @ @ @ @ @ @ @ : Democrats have proposed another round of $ 1,200 per adult stimulus checks , and President Trump said this week that he would like to see an even larger amount .
But Republican lawmakers are skeptical , and depending on the economic data , they could sink any effort to provide more direct aid to households .
* Employer liability : Senate Majority Leader Mitch McConnell ( R-KY ) wants to protect employers from lawsuits related to the coronavirus .
“ Any bill that passes the Senate will have liability protections in it @ @ @ @ @ @ @ .
“ This is liability protections for everyone … everybody who interacted with this pandemic .
Unless you ’ re grossly negligent or intentionally engaged in misconduct , we ’ re going to see to it that you don ’ t get sued on top of everything else you ’ ve had to deal with in trying to get through this.
” The White House has also said it wants to see formal limits on liability , but House Speaker Nancy Pelosi ( D-CA ) has said she would oppose any effort to @ @ @ @ @ @ @ State and local aid : Democrats say that state and local governments need about $ 1 trillion in aid , likely far more than Republicans would consider .
While the White House and GOP lawmakers say they are willing to consider some aid , any eventual compromise would likely well short of what governors and local leaders say they need .
Writing at the Washington Post Thursday , Catherine Rampell highlighted the potential importance of such aid .
State and local governments are already cutting back on spending , creating more downward pressure @ @ @ @ @ @ @ Unless federal aid comes through soon , expect huge new public-sector layoffs and service cuts in the months ahead , followed by knock-on job losses in the private sector , ” Rampell said .

While serious negotiations on the next possible coronavirus stimulus package won’t begin until Congress returns to Washington on July 20, some analysts think the strong June jobs report may make it easier for Republican lawmakers and the White House to limit its size and scope.
Treasury Secretary Steven Mnuchin signaled that the White House recognizes that the recovery is not complete, saying “our work is not done” at Trump’s news conference. But White House adviser Stephen Moore told The Washington Post Thursday that the strong report makes it less likely that the administration will back a $2 trillion to $3 trillion stimulus package along the lines proposed by Democrats. Moore also said resistance to extending a big boost to unemployment benefits has also probably grown stronger.
Still, some kind of package is likely to move forward. Bloomberg has a rundown on what the package could include:
* More aid for business: Lawmakers are debating another extension for the Paycheck Protection Program, which provides forgivable loans to small businesses, or potentially reprogramming its unused funds – as much as $130 billion – for other kinds of assistance. Mnuchin has said that he would like to aid more clearly targeted at businesses that need help. And the administration continues to push for tax breaks to promote hiring and consumption.
* Unemployment benefits: Democrats want to extend the $600 per week boost to unemployment benefits, but Republicans say they want it to end as scheduled at the end of this month, charging that it motivates workers to stay unemployed. A compromise could be worked out, providing some kind of enhanced benefits at a lower level.
* Checks for households: Democrats have proposed another round of $1,200 per adult stimulus checks, and President Trump said this week that he would like to see an even larger amount. But Republican lawmakers are skeptical, and depending on the economic data, they could sink any effort to provide more direct aid to households.
* Employer liability: Senate Majority Leader Mitch McConnell (R-KY) wants to protect employers from lawsuits related to the coronavirus. “Any bill that passes the Senate will have liability protections in it,” McConnell said earlier this week. “This is liability protections for everyone … everybody who interacted with this pandemic. Unless you’re grossly negligent or intentionally engaged in misconduct, we’re going to see to it that you don’t get sued on top of everything else you’ve had to deal with in trying to get through this.” The White House has also said it wants to see formal limits on liability, but House Speaker Nancy Pelosi (D-CA) has said she would oppose any effort to provide broad immunity for employers.
* State and local aid: Democrats say that state and local governments need about $1 trillion in aid, likely far more than Republicans would consider. While the White House and GOP lawmakers say they are willing to consider some aid, any eventual compromise would likely well short of what governors and local leaders say they need.
Writing at the Washington Post Thursday, Catherine Rampell highlighted the potential importance of such aid. State and local governments are already cutting back on spending, creating more downward pressure on employment and economic growth. “Unless federal aid comes through soon, expect huge new public-sector layoffs and service cuts in the months ahead, followed by knock-on job losses in the private sector,” Rampell said.


thefiscaltimes--2020-07-02--Unemployment Rate Drops Again, but Economy May Be Slowing

The U.S. economy added 4.8 million jobs in June , the Department of Labor announced Thursday , marking the second month in a row with better than expected employment data .
The jobless rate fell to 11.1 % , down from 13.3 % in May and 14.7 % in April , as employers continued to reopen their businesses and call back furloughed workers .
President Trump was quick to celebrate the results .
“ It 's all coming back .
It 's coming back faster , bigger and better than we ever thought possible , ” Trump told reporters .
@ @ @ @ @ @ @ are not numbers made up by me .
These are numbers.
” Andrew Chamberlain , the chief economist at Glassdoor , said the `` positive jobs report does provide a powerful signal of how swiftly US job growth can bounce back and how rapidly businesses can reopen once the nation finally brings the coronavirus under control — a reason for optimism in coming months.
” About that virus .
Chamberlain ’ s comments highlight a serious and growing problem for the economy : the failure of large parts of the country to get @ @ @ @ @ @ @ of economists pointed out Thursday , the monthly employment report is backward looking and provides a snapshot from several weeks ago .
That ’ s particularly relevant now , given the recent spike in coronavirus cases in much of the South and West , which is forcing state officials to reconsider their approach .
“ With more than 40 percent of the country now reversing or pausing its plans to reopen , the already struggling U.S. economy has begun to show signs of another shock , ” said Politico .
The initial jobless @ @ @ @ @ @ @ and it shows that layoffs are persisting at stubbornly high levels .
About 1.4 million Americans applied for unemployment benefits last week , and more than 19.3 million continue to receive payments — a slight increase from last week .
Julia Pollak , an economist at ZipRecruiter , told Politico that hiring has appears to have slowed .
“ That likely reflects increasing awareness that we haven ’ t got this virus under control yet , that businesses may have to re-close , ” Pollak said .
“ I think that is a @ @ @ @ @ @ @ mighty big hole to fill .
Even though job growth has exceeded expectations for the past two months , the number of unemployed in the U.S. remains at historic levels .
There are 14.7 million fewer jobs than there were before the pandemic began , with total employment still down by nearly 10 % .
Mark Zandi , chief economist at Moody ’ s Analytics , warned that the recovery is by no means complete , and progress is not assured .
“ It ’ s good news , but the pandemic pushed @ @ @ @ @ @ @ and we ’ re crawling out and it ’ s a long way to go , ” he said .
“ We can certainly fall back.
” Ominously , the number of people who have permanently lost their jobs is growing .
“ The first thing I looked at was number of people permanently laid off and that continues to climb , and I think that ’ s some cause of concern , ” Moody ’ s Ryan Sweet told Bloomberg .
“ Even when this pandemic ’ s over those people are @ @ @ @ @ @ @ ”

The U.S. economy added 4.8 million jobs in June, the Department of Labor announced Thursday, marking the second month in a row with better than expected employment data. The jobless rate fell to 11.1%, down from 13.3% in May and 14.7% in April, as employers continued to reopen their businesses and call back furloughed workers.
President Trump was quick to celebrate the results. “It's all coming back. It's coming back faster, bigger and better than we ever thought possible,” Trump told reporters. “These are the numbers. These are not numbers made up by me. These are numbers.”
Andrew Chamberlain, the chief economist at Glassdoor, said the "positive jobs report does provide a powerful signal of how swiftly US job growth can bounce back and how rapidly businesses can reopen once the nation finally brings the coronavirus under control — a reason for optimism in coming months.”
About that virus. Chamberlain’s comments highlight a serious and growing problem for the economy: the failure of large parts of the country to get the virus under control.
As plenty of economists pointed out Thursday, the monthly employment report is backward looking and provides a snapshot from several weeks ago. That’s particularly relevant now, given the recent spike in coronavirus cases in much of the South and West, which is forcing state officials to reconsider their approach.
“With more than 40 percent of the country now reversing or pausing its plans to reopen, the already struggling U.S. economy has begun to show signs of another shock,” said Politico.
The initial jobless claims report was also released Thursday, and it shows that layoffs are persisting at stubbornly high levels. About 1.4 million Americans applied for unemployment benefits last week, and more than 19.3 million continue to receive payments — a slight increase from last week.
Julia Pollak, an economist at ZipRecruiter, told Politico that hiring has appears to have slowed. “That likely reflects increasing awareness that we haven’t got this virus under control yet, that businesses may have to re-close,” Pollak said. “I think that is a very upsetting and worrying thing.”
A mighty big hole to fill. Even though job growth has exceeded expectations for the past two months, the number of unemployed in the U.S. remains at historic levels. There are 14.7 million fewer jobs than there were before the pandemic began, with total employment still down by nearly 10%.
Mark Zandi, chief economist at Moody’s Analytics, warned that the recovery is by no means complete, and progress is not assured. “It’s good news, but the pandemic pushed us into a very deep economic hole and we’re crawling out and it’s a long way to go,” he said. “We can certainly fall back.”
Ominously, the number of people who have permanently lost their jobs is growing. “The first thing I looked at was number of people permanently laid off and that continues to climb, and I think that’s some cause of concern,” Moody’s Ryan Sweet told Bloomberg. “Even when this pandemic’s over those people are going to need to find work.”


thefiscaltimes--2020-07-01--US Public Health System Starved for Funds: Report

The coronavirus crisis is shining a light on the inadequacies of the American public health system , which most experts agree is significantly underfunded .
A new report from Kaiser Health News and the Associated Press documents the decline of the system over the last decade and warns that the situation will likely get worse as recession-driven budget cuts take their toll at the state and local level .
Some key details from the report : • Per capita spending for state public health departments has dropped by 16 % since 2010 .
• Spending for local health departments has @ @ @ @ @ @ @ time period .
• More than 38,000 state and local public health jobs have been eliminated since the recession in 2008 – “ leaving a skeletal workforce for what was once viewed as one of the world ’ s top public health systems.
” • The majority of Americans live in states that spend less than $ 100 per person per year on public health .
• Less than a third of local health departments have an epidemiologist or statistician on staff .
• Most local governments spend more on policing than on @ @ @ @ @ @ @ April , Robert Redfield , the director of the Centers for Disease Control and Prevention , told the reporters that his greatest regret was “ that our nation failed over decades to effectively invest in public health .
”

The coronavirus crisis is shining a light on the inadequacies of the American public health system, which most experts agree is significantly underfunded. A new report from Kaiser Health News and the Associated Press documents the decline of the system over the last decade and warns that the situation will likely get worse as recession-driven budget cuts take their toll at the state and local level.
Some key details from the report:
Per capita spending for state public health departments has dropped by 16% since 2010.
Spending for local health departments has fallen by 18% during the same time period.
More than 38,000 state and local public health jobs have been eliminated since the recession in 2008 – “leaving a skeletal workforce for what was once viewed as one of the world’s top public health systems.”
The majority of Americans live in states that spend less than $100 per person per year on public health.
Less than a third of local health departments have an epidemiologist or statistician on staff.
Most local governments spend more on policing than on health.
As the coronavirus raged in April, Robert Redfield, the director of the Centers for Disease Control and Prevention, told the reporters that his greatest regret was “that our nation failed over decades to effectively invest in public health.”


thefiscaltimes--2020-07-11--Trump Threatens Tax-Exempt Status and Funding for ‘Radical Left’ Universities

President Trump on Friday continued to put pressure on American schools , charging that “ too many ” universities are about “ radical left indoctrination ” rather than education .
As a result , the president said , he was instructing the Treasury Department to “ re-examine '' the tax-exempt status and funding of universities .
Most colleges and universities are exempt from taxes as 501 ( c ) ( 3 ) organizations .
In a pair of tweets sent while on his way to events in Florida , Trump said : `` Too many Universities and School Systems are @ @ @ @ @ @ @ .
Therefore , I am telling the Treasury Department to re-examine their Tax-Exempt Status ... and/or Funding , which will be taken away if this Propaganda or Act Against Public Policy continues .
Our children must be Educated , not Indoctrinated ! ''
Earlier in the week , Trump had threatened to cut federal funding from schools if they do n't reopen this fall .
What Trump is doing : “ This is an old issue for conservatives that the president is now tapping into as part of his broader culture war conversation @ @ @ @ @ @ @ and weeks , '' Peter Baker of The New York Times said .
What Trump could do : “ It would fall to the IRS , a bureau of the Treasury Department , to conduct the review that Trump described .
However , federal law prohibits the IRS from targeting groups for regulatory scrutiny ‘ based on their ideological beliefs , ’ ” The Hill ’ s Morgan Chalfant reports .
Bloomberg ’ s Jordan Fabian further explains : “ Trump ’ s power to drastically alter universities ’ tax exemption is limited @ @ @ @ @ @ @ that could hurt their bottom lines .
For example , the Treasury Department could make changes through regulations , such as the Unrelated Business Income Tax , which pertains to profits earned through a part of the school that is not substantially related to the non-profit or educational part of the university.
” Universities also rely on federal research grants and they ’ ll need emergency coronavirus response funds , which the administration reportedly may be able to curtail , but broader changes would require congressional action , which is highly unlikely .

President Trump on Friday continued to put pressure on American schools, charging that “too many” universities are about “radical left indoctrination” rather than education. As a result, the president said, he was instructing the Treasury Department to “re-examine" the tax-exempt status and funding of universities. Most colleges and universities are exempt from taxes as 501(c)(3) organizations.
In a pair of tweets sent while on his way to events in Florida, Trump said: "Too many Universities and School Systems are about Radical Left Indoctrination, not Education. Therefore, I am telling the Treasury Department to re-examine their Tax-Exempt Status... and/or Funding, which will be taken away if this Propaganda or Act Against Public Policy continues. Our children must be Educated, not Indoctrinated!"
Earlier in the week, Trump had threatened to cut federal funding from schools if they don't reopen this fall.
What Trump is doing: “This is an old issue for conservatives that the president is now tapping into as part of his broader culture war conversation he's been stoking in recent days and weeks," Peter Baker of The New York Times said.
What Trump could do: “It would fall to the IRS, a bureau of the Treasury Department, to conduct the review that Trump described. However, federal law prohibits the IRS from targeting groups for regulatory scrutiny ‘based on their ideological beliefs,’” The Hill’s Morgan Chalfant reports.
Bloomberg’s Jordan Fabian further explains: “Trump’s power to drastically alter universities’ tax exemption is limited, but he could make policy changes that could hurt their bottom lines. For example, the Treasury Department could make changes through regulations, such as the Unrelated Business Income Tax, which pertains to profits earned through a part of the school that is not substantially related to the non-profit or educational part of the university.”
Universities also rely on federal research grants and they’ll need emergency coronavirus response funds, which the administration reportedly may be able to curtail, but broader changes would require congressional action, which is highly unlikely.


thefiscaltimes--2020-07-08--Trump Threatens to Cut Off Funding for Schools That Don’t Reopen

President Trump threatened to cut off federal funding for schools that don ’ t restart in-person classes by the fall and assailed Centers for Disease Control and Prevention guidelines for reopening schools , calling them “ very tough , ” “ expensive ” and “ very impractical.
” '' The Dems think it would be bad for them politically if U.S. schools open before the November Election , but is important for the children & families .
May cut off funding if not open ! ''
Trump tweeted Wednesday morning .
New guidance coming : Shortly after , Vice President @ @ @ @ @ @ @ of the White House coronavirus task force that the CDC would issue additional guidance next week .
“ The president said today , we just don ’ t want the guidance to be too tough , ” Pence said .
Dr. Robert Redfield , the CDC director , reminded reporters at the briefing that the health agency ’ s recommendations are “ guidance , not requirements ” and emphasized that the guidelines are not intended “ to be used as a rationale to keep schools closed.
” An administration push to reopen : @ @ @ @ @ @ @ have ramped up a push this week to get children back in classrooms this fall , a crucial step toward a more full-fledged economic recovery since it would better enable working parents to return to their jobs .
Trump ’ s reelection prospects may well depend on the state of the pandemic and economy as voters cast their ballots .
Trump said Tuesday he would “ put pressure on governors and everybody else ” to reopen schools , and DeVos told Fox News host Tucker Carlson Tuesday night that she is “ very @ @ @ @ @ @ @ from schools that do n't open their classrooms .
Administration officials emphasized Wednesday that keeping schools closed carries risks as well and could result in students falling behind academically or suffering health and nutritional effects .
The White House notes that the American Academy of Pediatrics has said it “ strongly advocates that all policy considerations for the coming year should start with a goal of having students physically present in school.
” Setting up clashes : Trump ’ s latest push will set the stage for clashes with Democrats , some of @ @ @ @ @ @ @ s approach as well as with teachers ’ unions and state and local officials .
A spokesperson for House Speaker Nancy Pelosi told Bloomberg News that Trump has repeatedly ignored medical experts and needs to “ get serious about crushing the virus instead of asking parents , teachers and children to risk their lives.
” Teachers unions say that while they want to get kids back to their classrooms , reopening must happen safely .
They ’ ve also pushed for more than $ 100 billion in additional funding to that end .
@ @ @ @ @ @ @ about the importance of public schooling .
They demanded schools reopen but they didn ’ t offer any plans or resources to support to schools .
They didn ’ t offer any guidance on keeping kids safe , ” Randi Weingarten , president of American Federation of Teachers , tweeted Tuesday night .
She later added : “ Reopening schools doesn ’ t happen with an all-caps tweet or WH photo op .
It happens w/ careful planning to meets students ’ needs , methodical attention to preventing virus spread in schools , @ @ @ @ @ @ @ get there.
” The federal funding question : The federal government provides billions of dollars for low-income schools and special education at the K-12 level , but that represents only a small portion of overall education spending , with the vast majority of school funding — about 90 % — coming from state and local budgets .
Trump ’ s threat to block federal funding may not have much bite .
“ Trump ca n't unilaterally cut current federal funding for schools , ” CNN explains .
“ However , he could possibly @ @ @ @ @ @ @ which would likely be challenged in court -- and refuse to sign future legislation for federal grants and bailouts for schools.
” Evan Hollander , spokesperson for the Democratic-controlled House Appropriations Committee , said in a statement cited by Politico that the president does n't have the authority to withhold federal funds .
`` President Trump is repeating the same mistakes that have made America ’ s coronavirus pandemic the worst in the world , attempting to override science in search of political advantage , '' Hollander said .
`` When it comes @ @ @ @ @ @ @ education programs that serve some of the most vulnerable young people in our country .
The President has no authority to cut off funding for these students , and threatening to do so to prop up his flailing campaign is offensive . ''
Still , The New York Times reports that Trump ’ s funding threat “ carries real weight ” because the $ 2 trillion coronavirus relief package passed by Congress in March gave DeVos wide latitude in deciding how to distribute tens of millions of dollars in aid to school districts @ @ @ @ @ @ @ for funds as they try to find ways to open classrooms with far fewer students and staff in each , to maintain social distancing , to test students and staff for the coronavirus , and to provide masks and other protective gear , ” the Times reports .
“ Education groups have estimated that they need at least $ 200 billion in additional funding to reopen next school year.
” DeVos , meanwhile , reportedly said Tuesday that only 1 % of the $ 13.5 billion in relief funding for K-12 school districts @ @ @ @ @ @ @ both acknowledged that federal money represents a fraction of overall education spending and said the administration would look for other ways to encourage states to return students to classrooms .
“ As we work with Congress on the next round of state support , we 're going to be looking for ways to give states a strong incentive and encouragement to get kids back to school , ” Pence told reporters Wednesday .

President Trump threatened to cut off federal funding for schools that don’t restart in-person classes by the fall and assailed Centers for Disease Control and Prevention guidelines for reopening schools, calling them “very tough,” “expensive” and “very impractical.”
"The Dems think it would be bad for them politically if U.S. schools open before the November Election, but is important for the children & families. May cut off funding if not open!" Trump tweeted Wednesday morning.
New guidance coming: Shortly after, Vice President Mike Pence told reporters at a briefing of the White House coronavirus task force that the CDC would issue additional guidance next week. “The president said today, we just don’t want the guidance to be too tough,” Pence said.
Dr. Robert Redfield, the CDC director, reminded reporters at the briefing that the health agency’s recommendations are “guidance, not requirements” and emphasized that the guidelines are not intended “to be used as a rationale to keep schools closed.”
An administration push to reopen: The president and Education Secretary Betsy DeVos have ramped up a push this week to get children back in classrooms this fall, a crucial step toward a more full-fledged economic recovery since it would better enable working parents to return to their jobs. Trump’s reelection prospects may well depend on the state of the pandemic and economy as voters cast their ballots.
Trump said Tuesday he would “put pressure on governors and everybody else” to reopen schools, and DeVos told Fox News host Tucker Carlson Tuesday night that she is “very seriously” looking at withholding federal funds from schools that don't open their classrooms. Administration officials emphasized Wednesday that keeping schools closed carries risks as well and could result in students falling behind academically or suffering health and nutritional effects. The White House notes that the American Academy of Pediatrics has said it “strongly advocates that all policy considerations for the coming year should start with a goal of having students physically present in school.”
Setting up clashes: Trump’s latest push will set the stage for clashes with Democrats, some of whom have already criticized the administration’s approach as well as with teachers’ unions and state and local officials. A spokesperson for House Speaker Nancy Pelosi told Bloomberg News that Trump has repeatedly ignored medical experts and needs to “get serious about crushing the virus instead of asking parents, teachers and children to risk their lives.”
Teachers unions say that while they want to get kids back to their classrooms, reopening must happen safely. They’ve also pushed for more than $100 billion in additional funding to that end.
“Trump and DeVos woke up yesterday about the importance of public schooling. They demanded schools reopen but they didn’t offer any plans or resources to support to schools. They didn’t offer any guidance on keeping kids safe,” Randi Weingarten, president of American Federation of Teachers, tweeted Tuesday night. She later added: “Reopening schools doesn’t happen with an all-caps tweet or WH photo op. It happens w/ careful planning to meets students’ needs, methodical attention to preventing virus spread in schools, & sufficient federal resources to help us get there.”
The federal funding question: The federal government provides billions of dollars for low-income schools and special education at the K-12 level, but that represents only a small portion of overall education spending, with the vast majority of school funding — about 90% — coming from state and local budgets.
Trump’s threat to block federal funding may not have much bite. “Trump can't unilaterally cut current federal funding for schools,” CNN explains. “However, he could possibly restrict some recent pandemic relief funding -- which would likely be challenged in court -- and refuse to sign future legislation for federal grants and bailouts for schools.”
Evan Hollander, spokesperson for the Democratic-controlled House Appropriations Committee, said in a statement cited by Politico that the president doesn't have the authority to withhold federal funds.
"President Trump is repeating the same mistakes that have made America’s coronavirus pandemic the worst in the world, attempting to override science in search of political advantage," Hollander said. "When it comes to our schools, Congress funds federal education programs that serve some of the most vulnerable young people in our country. The President has no authority to cut off funding for these students, and threatening to do so to prop up his flailing campaign is offensive."
Still, The New York Times reports that Trump’s funding threat “carries real weight” because the $2 trillion coronavirus relief package passed by Congress in March gave DeVos wide latitude in deciding how to distribute tens of millions of dollars in aid to school districts.
“Those districts are now desperate for funds as they try to find ways to open classrooms with far fewer students and staff in each, to maintain social distancing, to test students and staff for the coronavirus, and to provide masks and other protective gear,” the Times reports. “Education groups have estimated that they need at least $200 billion in additional funding to reopen next school year.” DeVos, meanwhile, reportedly said Tuesday that only 1% of the $13.5 billion in relief funding for K-12 school districts had been claimed.
DeVos and Pence both acknowledged that federal money represents a fraction of overall education spending and said the administration would look for other ways to encourage states to return students to classrooms. “As we work with Congress on the next round of state support, we're going to be looking for ways to give states a strong incentive and encouragement to get kids back to school,” Pence told reporters Wednesday.


thefiscaltimes--2020-07-11--Deficit Soared to $863 Billion in June, Nearly Matching 2019 Total: CBO

The federal budget deficit in June totaled $ 863 billion , the Congressional Budget Office estimated this week .
That ’ s up from $ 8 billion in the same month last year and nearly matches the fiscal gap for all of fiscal year 2019 , which was $ 984 billion .
The surging deficit is the result of the coronavirus pandemic , as federal spending more than tripled compared to June 2019 and tax revenues plunged 28 % .
Outlays by the Small Business Administration ( SBA ) rose from $ 80 million to $ 511 billion because of @ @ @ @ @ @ @ small companies weather the pandemic and maintain payrolls .
SBA spending accounted for almost half of the government ’ s $ 1.1 trillion in total outlays .
Spending on unemployment insurance jumped from $ 2 billion in June 2019 to $ 116 billion last month , with more than half of the increase stemming from the $ 600 increase in weekly benefits authorized by Congress in March .
Those enhanced payments are set to expire this month .
Tax revenues fell as a result of declines in wages and diminished economic activity as @ @ @ @ @ @ @ to delay the deadline for quarterly estimated taxes from June 15 to July 15 , the CBO said .
For the first nine months of the fiscal year , the deficit totaled $ 2.7 trillion , CBO estimated , compared with $ 747 billion over the same period last year .
Total outlays have risen by 49 % , while receipts have fallen by 13 % .
Revenues for the first six months of the year were 6 % higher than the same period last year , but receipts over the last three @ @ @ @ @ @ @ 2019 , in large part as the result of the tax filing deadline being pushed back from April 15 .
CBO expects that much of the deferred revenue will be collected later this year or in future years .
From April through June , the deficit was an estimated $ 2.0 trillion , compared with $ 56 billion for the same period last year .

The federal budget deficit in June totaled $863 billion, the Congressional Budget Office estimated this week. That’s up from $8 billion in the same month last year and nearly matches the fiscal gap for all of fiscal year 2019, which was $984 billion.
The surging deficit is the result of the coronavirus pandemic, as federal spending more than tripled compared to June 2019 and tax revenues plunged 28%.
Outlays by the Small Business Administration (SBA) rose from $80 million to $511 billion because of the Paycheck Protection Program created to help small companies weather the pandemic and maintain payrolls. SBA spending accounted for almost half of the government’s $1.1 trillion in total outlays.
Spending on unemployment insurance jumped from $2 billion in June 2019 to $116 billion last month, with more than half of the increase stemming from the $600 increase in weekly benefits authorized by Congress in March. Those enhanced payments are set to expire this month.
Tax revenues fell as a result of declines in wages and diminished economic activity as well as the administration’s decision to delay the deadline for quarterly estimated taxes from June 15 to July 15, the CBO said.
For the first nine months of the fiscal year, the deficit totaled $2.7 trillion, CBO estimated, compared with $747 billion over the same period last year.
Total outlays have risen by 49%, while receipts have fallen by 13%. Revenues for the first six months of the year were 6% higher than the same period last year, but receipts over the last three months plunged by 40% compared to 2019, in large part as the result of the tax filing deadline being pushed back from April 15. CBO expects that much of the deferred revenue will be collected later this year or in future years.
From April through June, the deficit was an estimated $2.0 trillion, compared with $56 billion for the same period last year.


thefiscaltimes--2020-07-09--Trump Admin, Republicans Eye Narrower Coronavirus Relief Package

As Congress prepares to put together a new coronavirus relief bill , the Trump administration and congressional Republicans are looking to deliver aid more narrowly and limit the overall cost of the package .
Eyeing a $ 1 trillion package : Vice President Mike Pence ’ s top aide told Bloomberg News this week that the administration wants to limit the cost of the next coronavirus package to $ 1 trillion or less , about the same level that Senate Majority Leader Mitch McConnell ( R-KY ) reportedly is seeking .
That target likely ensures a fight with Democrats , @ @ @ @ @ @ @ aid package .
White House wants to change $ 600 enhanced unemployment benefit : Treasury Secretary Steven Mnuchin told CNBC Thursday that the administration opposes an extension of the $ 600 in weekly federal unemployment payments .
Any extension would ensure that jobless benefits would be “ no more than 100 % ” of what workers were earning , Mnuchin said .
“ We knew there was a problem with enhanced unemployment in that certain cases people were paid more than they made in their jobs , ” he said .
“ We @ @ @ @ @ @ @ ll figure out an extension to it that works for companies and works for those people who will still be unemployed.
” A National Bureau of Economic Research working paper by researchers at the University of Chicago found that 68 % of unemployed workers who are eligible for unemployment insurance will get benefits exceeding their lost earnings and one out of five eligible jobless workers will get at least double their lost earnings .
The overall median replacement rate of the enhanced benefits is 134 % , the researchers said .
“ Notably @ @ @ @ @ @ @ are highest for the unemployed with the lowest prior earnings who are likely most vulnerable , ” they wrote .
“ At the same time , replacement rates over 100 % create distributional issues and may hamper efficient labor reallocation both now , and especially during an eventual recovery.
” Fewer stimulus checks : The eligibility threshold for the $ 1,200 relief payments approved by Congress in March was set at $ 75,000 in income for individuals and $ 150,000 for married couples , with payments phasing out above those levels .
The @ @ @ @ @ @ @ White House officials are considering lowering those income levels , though talks are still ongoing and the exact number they may propose is still unclear .
McConnell said this week that any additional direct payments should be targeted to people earning $ 40,000 a year or less .
Other Senate Republicans oppose sending out more payments altogether , with many conservatives saying they ’ re concerned by the trillions of dollars being added to the national debt .
“ Limiting the next round of stimulus checks to those earning under $ 40,000 , @ @ @ @ @ @ @ and Erica Werner write , “ would save lawmakers about $ 200 billion compared with the first round of checks , according to Ernie Tedeschi , who served as an economist in the Obama administration .
It would also mean that 20 million middle-class Americans would not receive the financial lifeline.
” Mnuchin told CNBC that the administration does support another round of stimulus payments , but that he would discuss the “ level and criteria ” for those payments with senators after they return from their recess .
( He also said @ @ @ @ @ @ @ , much more targeted ” extension of the Paycheck Protection Program for small businesses . )
Efforts to scale back the next round of stimulus payments would likely face both political and logistical challenges .
“ One Republican tax expert , who spoke on the condition of anonymity to discuss private deliberations , predicted the GOP would probably back off plans to curb the payments because of the administrative hurdles in effectively targeting the funding , ” Stein and Werner report .
“ The GOP will also face political pressure not to curb @ @ @ @ @ @ @ middle-class households .
”

As Congress prepares to put together a new coronavirus relief bill, the Trump administration and congressional Republicans are looking to deliver aid more narrowly and limit the overall cost of the package.
Eyeing a $1 trillion package: Vice President Mike Pence’s top aide told Bloomberg News this week that the administration wants to limit the cost of the next coronavirus package to $1 trillion or less, about the same level that Senate Majority Leader Mitch McConnell (R-KY) reportedly is seeking. That target likely ensures a fight with Democrats, who want a much larger and broader aid package.
White House wants to change $600 enhanced unemployment benefit: Treasury Secretary Steven Mnuchin told CNBC Thursday that the administration opposes an extension of the $600 in weekly federal unemployment payments. Any extension would ensure that jobless benefits would be “no more than 100%” of what workers were earning, Mnuchin said. “We knew there was a problem with enhanced unemployment in that certain cases people were paid more than they made in their jobs,” he said. “We’ll fix that and we’ll figure out an extension to it that works for companies and works for those people who will still be unemployed.”
A National Bureau of Economic Research working paper by researchers at the University of Chicago found that 68% of unemployed workers who are eligible for unemployment insurance will get benefits exceeding their lost earnings and one out of five eligible jobless workers will get at least double their lost earnings. The overall median replacement rate of the enhanced benefits is 134%, the researchers said.
“Notably, replacement rates under the CARES Act are highest for the unemployed with the lowest prior earnings who are likely most vulnerable,” they wrote. “At the same time, replacement rates over 100% create distributional issues and may hamper efficient labor reallocation both now, and especially during an eventual recovery.”
Fewer stimulus checks: The eligibility threshold for the $1,200 relief payments approved by Congress in March was set at $75,000 in income for individuals and $150,000 for married couples, with payments phasing out above those levels. The Washington Post reports that congressional Republicans and White House officials are considering lowering those income levels, though talks are still ongoing and the exact number they may propose is still unclear.
McConnell said this week that any additional direct payments should be targeted to people earning $40,000 a year or less. Other Senate Republicans oppose sending out more payments altogether, with many conservatives saying they’re concerned by the trillions of dollars being added to the national debt.
“Limiting the next round of stimulus checks to those earning under $40,000,” the Post’s Jeff Stein and Erica Werner write, “would save lawmakers about $200 billion compared with the first round of checks, according to Ernie Tedeschi, who served as an economist in the Obama administration. It would also mean that 20 million middle-class Americans would not receive the financial lifeline.”
Mnuchin told CNBC that the administration does support another round of stimulus payments, but that he would discuss the “level and criteria” for those payments with senators after they return from their recess. (He also said the White House wants a “much, much more targeted” extension of the Paycheck Protection Program for small businesses.)
Efforts to scale back the next round of stimulus payments would likely face both political and logistical challenges. “One Republican tax expert, who spoke on the condition of anonymity to discuss private deliberations, predicted the GOP would probably back off plans to curb the payments because of the administrative hurdles in effectively targeting the funding,” Stein and Werner report. “The GOP will also face political pressure not to curb stimulus payments during an election year for middle-class households.”


thefiscaltimes--2020-07-09--Biden Unveils $700 Billion ‘Buy American’ Economic Plan

Joe Biden on Thursday proposed a $ 700 billion plan to use government purchasing power to boost U.S. manufacturing and innovation .
Biden ’ s plan calls for the government to buy American products and invest in areas including clean energy research , infrastructure and health care , with the aim of bringing back jobs lost during the pandemic and adding 5 million beyond that .
“ When the federal government spends taxpayers ’ money , we should use it to buy American products and support American jobs , ” Biden , the presumptive Democratic presidential nominee , said in @ @ @ @ @ @ @ in Scranton , Pa .
The Biden proposal is the first plank of what his campaign says will be a four-part “ build back better ” agenda to strengthen the recovery from the coronavirus .
“ Biden does not accept the defeatist view that the forces of automation and globalization render us helpless to retain well-paid union jobs and create more of them here in America , ” the former vice president ’ s campaign said in a statement summarizing the plan .
Biden ’ s plan calls for $ 400 billion in @ @ @ @ @ @ @ four years , which his campaign says would be the largest such public investment since World War II .
The spending would be focused in areas including clean vehicles and green energy generation ; construction materials for infrastructure improvements , including steel , cement and concrete ; and critical medical supplies and pharmaceuticals to replenish national stockpiles .
The plan also includes a $ 300 billion investment in U.S. research on technologies ranging from `` electric vehicle technology to lightweight materials to 5G and artificial intelligence -- to unleash high-quality job creation in @ @ @ @ @ @ @ it calls for a review to evaluate and protect U.S. supply chains .
Biden ’ s proposal reportedly builds on a plan from Massachusetts Sen. Elizabeth Warren , and the former vice president ’ s campaign “ consulted closely ” on its proposal with Warren ’ s team , according to The Washington Post .
In his speech , Biden again pledged to reverse some of the Trump tax cuts for corporations and raise the corporate tax rate to 28 % , but his campaign did not spell out how it would pay @ @ @ @ @ @ @ proposed spending .
Why it matters : “ Biden ’ s pitch underscores a major shift by both major parties away from embracing globalization and free trade and toward protecting American workers and revitalizing struggling domestic industries , ” the Post ’ s Sean Sullivan and Jeff Stein write .
Biden is in some ways proposing his own version of President Trump ’ s “ America First ” economic agenda , simultaneously challenging Trump ’ s approach and looking to undercut the president ’ s economic reelection message .
The Post reports : @ @ @ @ @ @ @ by some Trump allies that it was released before the president announced a similar ‘ Buy American ’ proposal that has been held up for months amid internal objections , according to current and former officials .
Stephen K. Bannon , a former chief Trump strategist , said the president ’ s team was ‘ caught flat-footed .
’ ”

Joe Biden on Thursday proposed a $700 billion plan to use government purchasing power to boost U.S. manufacturing and innovation.
Biden’s plan calls for the government to buy American products and invest in areas including clean energy research, infrastructure and health care, with the aim of bringing back jobs lost during the pandemic and adding 5 million beyond that.
“When the federal government spends taxpayers’ money, we should use it to buy American products and support American jobs,” Biden, the presumptive Democratic presidential nominee, said in an afternoon speech near his childhood home in Scranton, Pa.
The Biden proposal is the first plank of what his campaign says will be a four-part “build back better” agenda to strengthen the recovery from the coronavirus. “Biden does not accept the defeatist view that the forces of automation and globalization render us helpless to retain well-paid union jobs and create more of them here in America,” the former vice president’s campaign said in a statement summarizing the plan.
Biden’s plan calls for $400 billion in federal procurement spending on American-made products over four years, which his campaign says would be the largest such public investment since World War II. The spending would be focused in areas including clean vehicles and green energy generation; construction materials for infrastructure improvements, including steel, cement and concrete; and critical medical supplies and pharmaceuticals to replenish national stockpiles.
The plan also includes a $300 billion investment in U.S. research on technologies ranging from "electric vehicle technology to lightweight materials to 5G and artificial intelligence -- to unleash high-quality job creation in high-value manufacturing and technology." And it calls for a review to evaluate and protect U.S. supply chains.
Biden’s proposal reportedly builds on a plan from Massachusetts Sen. Elizabeth Warren, and the former vice president’s campaign “consulted closely” on its proposal with Warren’s team, according to The Washington Post.
In his speech, Biden again pledged to reverse some of the Trump tax cuts for corporations and raise the corporate tax rate to 28%, but his campaign did not spell out how it would pay for the full $700 billion in proposed spending.
Why it matters: “Biden’s pitch underscores a major shift by both major parties away from embracing globalization and free trade and toward protecting American workers and revitalizing struggling domestic industries,” the Post’s Sean Sullivan and Jeff Stein write.
Biden is in some ways proposing his own version of President Trump’s “America First” economic agenda, simultaneously challenging Trump’s approach and looking to undercut the president’s economic reelection message. The Post reports: “Biden’s announcement prompted frustration by some Trump allies that it was released before the president announced a similar ‘Buy American’ proposal that has been held up for months amid internal objections, according to current and former officials. Stephen K. Bannon, a former chief Trump strategist, said the president’s team was ‘caught flat-footed.’”