thefiscaltimes--2020-07-07--Who Got Big Bucks Through Small Business Rescue Program?

The Trump administration on Monday released data on loans made through the Paycheck Protection Program meant to help small businesses get through the coronavirus pandemic , including the names of 660,000 companies that received loans of $ 150,000 or more .
The loan recipients include restaurant chains , businesses linked to members of Congress and the Trump administration , high-priced law firms , special interest groups , Planned Parenthood locations and Kanye West ’ s clothing and sneaker company , Yeezy .
The disclosure could bring some renewed criticism of the PPP , which has faced questions about whether it @ @ @ @ @ @ @ the most .
The program generated some outrage early on when large , publicly traded companies said they had taken out loans .
More than $ 30 billion in loans were reportedly returned after the administration said that companies with access to other sources of capital shouldn ’ t be borrowing through the program .
“ My 1,000-foot takeaway is that the government was handing out free money and the line went around the corner , ” Aaron Klein , a fellow in economic studies at the Brookings Institution , told The New @ @ @ @ @ @ @ your mom-and-pop shop on Main Street.
” The big picture : The program issued more than $ 521 billion across nearly 4.9 million forgivable loans through June 30 .
The health-care and social assistance industry received more than $ 67 billion , or 12.9 % of the loan money .
Professional and technical services got 12.7 % , while 12.4 % went to construction and 10.3 % went to manufacturing The program still has $ 131.9 billion in funding left unused , though Congress just passed legislation to extend the application deadline through @ @ @ @ @ @ @ repurpose funds left over .
The data released Monday doesn ’ t include names or addresses for businesses receiving loans of less than $ 150,000 , which collectively represent 86.5 % of loans and about a quarter of the total loan dollars approved .
The data also only provides loan amounts in broad ranges , which groups advocating for government transparency criticized as inadequate .
Treasury Secretary Steven Mnuchin said that the PPP has supported more than 51 million jobs and more than 80 % of all small business employees , with an @ @ @ @ @ @ @ .
Still , nearly 49,000 loan recipients reported that they would save zero jobs with the borrowed money and nearly 41,000 others did not say how many jobs they would keep with the money , according to The Washington Post .
Ten companies apparently received between $ 5 million and $ 10 million but reported retaining only one job with the money , the Post says .
Who got big loans : More than 4,800 businesses received loans between $ 5 million and $ 10 million .
“ Restaurants , medical offices and @ @ @ @ @ @ @ large loans from the program , ” the Times reports .
“ More than 40,000 full- or limited-service restaurants received loans worth as much as $ 32 billion , according to the ranges provided by the government.
” Among the large chains with Wall Street backing that received loans between $ 5 million and $ 10 million were PF Changs , Legal Sea Foods and Silver Diner , according to the Post .
The Times also notes that doctors ’ offices received as much as $ 19 billion , while law offices got @ @ @ @ @ @ @ 100 law firms getting loans ranging from $ 1 million to $ 10 million .
The firm of President Trump ’ s longtime personal lawyer , Marc Kasowitz , received between $ 5 million and $ 10 million .
The firm said the money enabled it to keep on its hundreds of employees at full salary and benefits .
Businesses linked to lawmakers got millions : “ At least nine lawmakers and three congressional caucuses have ties to organizations that took millions of dollars in aid , ” Politico reports .
“ In @ @ @ @ @ @ @ congressional caucuses have received at least $ 11 million in aid from the federal program that Congress created to help small businesses.
” It is not illegal for lawmakers to receive the loans , and their offices generally emphasized that the money was taken to help keep workers employed .
Among the lawmakers who own or have other ties to businesses that received loans are Republicans Reps. Rick Allen ( GA ) , Vicky Harzler ( MO ) , Kevin Hern ( OK ) , Mike Kelly ( PA ) , Markwayne Mullin @ @ @ @ @ @ @ TX ) as well as Democratic Reps. Matt Cartwright ( PA ) , Susie Lee ( NV ) and Debbie Mucarsel-Powell ( FL ) .
A company tied to the husband of House Speaker Nancy Pelosi ( D-CA ) got a loan of between $ 350,000 and $ 1 million .
The Congressional Black Caucus Foundation and the Congressional Hispanic Caucus Institute , the nonprofit arms of the member caucuses , also received loans of between $ 350,000 and $ 1 million each .
Trump-connected loans : The Trump Organization did not apply @ @ @ @ @ @ @ at buildings owned or managed by Trump reportedly received funds .
An Associated Press analysis found that as much as $ 273 million in PPP aid went to more than 100 companies that are owned or operated by major Trump donors , though the report notes that there ’ s no evidence the companies received favorable treatment as a result of their Trump connections .
Other loan recipients were linked to Jared Kushner , Trump ’ s son-in-law and senior adviser .
Businesses tied to Trump ’ s family and associates stand to @ @ @ @ @ @ @ in loans , according to ProPublica .
The disclosure could again raise questions about the extent to which the president ’ s businesses are benefitting from his government role , but plenty of politically connected applicants got PPP funds .
“ A firm that raises money for Mr. Trump ’ s re-election campaign and the Republican National Committee received a loan of more than $ 1 million , according to the data set , while a company that produces Mr. Trump ’ s political advertisements received between $ 350,000 and $ 1 million @ @ @ @ @ @ @ So did a consulting firm started by President Barack Obama ’ s former campaign manager Jim Messina and one that Hillary Clinton ’ s 2008 campaign paid for communications consulting.
” Cultural institutions : Some well-known cultural institutions — including some with large endowments — received millions in PPP loans , Bloomberg News reports : “ The institutions -- such as Carnegie Hall and the Whitney Museum of American Art in New York and the San Francisco Symphony -- were among the largest recipients of aid to nonprofits under the program , with @ @ @ @ @ @ @ range of $ 5 million to $ 10 million.
” Grover Norquist ’ s anti-spending group took a loan : A foundation affiliated with Grover Norquist ’ s Americans for Tax Reform , a conservative group known for its anti-tax advocacy and its efforts to rein in government spending , received a PPP loan of between $ 150,000 and $ 350,000 .
In a statement , the organizations said Americans for Tax Reform had never opposed PPP and that the foundation that received the loan “ was badly hurt by the government shutdown @ @ @ @ @ @ @ layoffs and “ does not engage in lobbying.
” But the Daily Beast notes that Norquist had signed on to a recent letter asking Trump and McConnell to stop spending on coronavirus relief .
“ The inside-the-beltway crowd falsely calls these trillions of dollars a ‘ stimulus ’ to the economy , ” the letter read .
“ But government can only give money to some people , as Nobel-prize winning economist Milton Friedman taught all of us many years ago , by taking money from others.
” Two other groups focused on @ @ @ @ @ @ @ Sense and Citizens Against Government Waste , also received PPP loans , as did Citizens United , the group that fought to enable more corporate spending on elections .
On the Left , Media Matters for America reportedly received a loan of between $ 1 million and $ 2 million while the Center for Economic and Policy Research and The Institute on Taxation and Economic Policy each received between $ 350,000 and $ 1 million , according to Roll Call .

The Trump administration on Monday released data on loans made through the Paycheck Protection Program meant to help small businesses get through the coronavirus pandemic, including the names of 660,000 companies that received loans of $150,000 or more. The loan recipients include restaurant chains, businesses linked to members of Congress and the Trump administration, high-priced law firms, special interest groups, Planned Parenthood locations and Kanye West’s clothing and sneaker company, Yeezy.
The disclosure could bring some renewed criticism of the PPP, which has faced questions about whether it is reaching the businesses that need help the most. The program generated some outrage early on when large, publicly traded companies said they had taken out loans. More than $30 billion in loans were reportedly returned after the administration said that companies with access to other sources of capital shouldn’t be borrowing through the program.
“My 1,000-foot takeaway is that the government was handing out free money and the line went around the corner,” Aaron Klein, a fellow in economic studies at the Brookings Institution, told The New York Times. “This is not your mom-and-pop shop on Main Street.”
The big picture: The program issued more than $521 billion across nearly 4.9 million forgivable loans through June 30. The health-care and social assistance industry received more than $67 billion, or 12.9% of the loan money. Professional and technical services got 12.7%, while 12.4% went to construction and 10.3% went to manufacturing
The program still has $131.9 billion in funding left unused, though Congress just passed legislation to extend the application deadline through August 8 and is considering ways to repurpose funds left over.
The data released Monday doesn’t include names or addresses for businesses receiving loans of less than $150,000, which collectively represent 86.5% of loans and about a quarter of the total loan dollars approved. The data also only provides loan amounts in broad ranges, which groups advocating for government transparency criticized as inadequate.
Treasury Secretary Steven Mnuchin said that the PPP has supported more than 51 million jobs and more than 80% of all small business employees, with an average loan size of about $107,000. Still, nearly 49,000 loan recipients reported that they would save zero jobs with the borrowed money and nearly 41,000 others did not say how many jobs they would keep with the money, according to The Washington Post. Ten companies apparently received between $5 million and $10 million but reported retaining only one job with the money, the Post says.
Who got big loans: More than 4,800 businesses received loans between $5 million and $10 million. “Restaurants, medical offices and car dealerships were the top recipients of large loans from the program,” the Times reports. “More than 40,000 full- or limited-service restaurants received loans worth as much as $32 billion, according to the ranges provided by the government.” Among the large chains with Wall Street backing that received loans between $5 million and $10 million were PF Changs, Legal Sea Foods and Silver Diner, according to the Post.
The Times also notes that doctors’ offices received as much as $19 billion, while law offices got $13 billion, with more than 100 law firms getting loans ranging from $1 million to $10 million. The firm of President Trump’s longtime personal lawyer, Marc Kasowitz, received between $5 million and $10 million. The firm said the money enabled it to keep on its hundreds of employees at full salary and benefits.
Businesses linked to lawmakers got millions: “At least nine lawmakers and three congressional caucuses have ties to organizations that took millions of dollars in aid,” Politico reports. “In total, companies linked to lawmakers and congressional caucuses have received at least $11 million in aid from the federal program that Congress created to help small businesses.”
It is not illegal for lawmakers to receive the loans, and their offices generally emphasized that the money was taken to help keep workers employed.
Among the lawmakers who own or have other ties to businesses that received loans are Republicans Reps. Rick Allen (GA), Vicky Harzler (MO), Kevin Hern (OK), Mike Kelly (PA), Markwayne Mullin (OK) and Roger Williams (TX) as well as Democratic Reps. Matt Cartwright (PA), Susie Lee (NV) and Debbie Mucarsel-Powell (FL). A company tied to the husband of House Speaker Nancy Pelosi (D-CA) got a loan of between $350,000 and $1 million.
The Congressional Black Caucus Foundation and the Congressional Hispanic Caucus Institute, the nonprofit arms of the member caucuses, also received loans of between $350,000 and $1 million each.
Trump-connected loans: The Trump Organization did not apply for PPP loans, but many tenants at buildings owned or managed by Trump reportedly received funds. An Associated Press analysis found that as much as $273 million in PPP aid went to more than 100 companies that are owned or operated by major Trump donors, though the report notes that there’s no evidence the companies received favorable treatment as a result of their Trump connections. Other loan recipients were linked to Jared Kushner, Trump’s son-in-law and senior adviser. Businesses tied to Trump’s family and associates stand to get as much as $21 million in loans, according to ProPublica.
The disclosure could again raise questions about the extent to which the president’s businesses are benefitting from his government role, but plenty of politically connected applicants got PPP funds.
“A firm that raises money for Mr. Trump’s re-election campaign and the Republican National Committee received a loan of more than $1 million, according to the data set, while a company that produces Mr. Trump’s political advertisements received between $350,000 and $1 million,” the Times reports. “So did a consulting firm started by President Barack Obama’s former campaign manager Jim Messina and one that Hillary Clinton’s 2008 campaign paid for communications consulting.”
Cultural institutions: Some well-known cultural institutions — including some with large endowments — received millions in PPP loans, Bloomberg News reports: “The institutions -- such as Carnegie Hall and the Whitney Museum of American Art in New York and the San Francisco Symphony -- were among the largest recipients of aid to nonprofits under the program, with each of them receiving injections in the range of $5 million to $10 million.”
Grover Norquist’s anti-spending group took a loan: A foundation affiliated with Grover Norquist’s Americans for Tax Reform, a conservative group known for its anti-tax advocacy and its efforts to rein in government spending, received a PPP loan of between $150,000 and $350,000. In a statement, the organizations said Americans for Tax Reform had never opposed PPP and that the foundation that received the loan “was badly hurt by the government shutdown,” used the money to avoid layoffs and “does not engage in lobbying.”
But the Daily Beast notes that Norquist had signed on to a recent letter asking Trump and McConnell to stop spending on coronavirus relief. “The inside-the-beltway crowd falsely calls these trillions of dollars a ‘stimulus’ to the economy,” the letter read. “But government can only give money to some people, as Nobel-prize winning economist Milton Friedman taught all of us many years ago, by taking money from others.”
Two other groups focused on cutting government spending, Taxpayers for Common Sense and Citizens Against Government Waste, also received PPP loans, as did Citizens United, the group that fought to enable more corporate spending on elections. On the Left, Media Matters for America reportedly received a loan of between $1 million and $2 million while the Center for Economic and Policy Research and The Institute on Taxation and Economic Policy each received between $350,000 and $1 million, according to Roll Call.


thefiscaltimes--2020-07-13--Deficit Hits Record $864 Billion in June

In June 2019 , the federal deficit totaled $ 8 billion .
According to the Treasury Department Monday , the monthly deficit in June 2020 came in at $ 864 billion – the highest monthly shortfall on record .
A surge in spending for coronavirus relief drove much of the increase , with outlays rising by 223 % to $ 1.1 trillion .
At $ 511 billion , the Paycheck Protection Program , which provides small businesses with forgivable loans , accounted for nearly half of the spending increase .
Federal receipts were down 28 % to $ 241 billion @ @ @ @ @ @ @ job losses and the delay in tax filing deadlines .
The June numbers bring the year-to-date deficit to $ 2.7 trillion , nearly twice the previous full-year record of $ 1.4 trillion in 2009 .
Analysts expect the deficit to total roughly $ 3.8 trillion for the 2020 fiscal year , which ends on September 30 .
“ June ’ s deficit figures highlights just how much havoc the coronavirus pandemic has wreaked on U.S. budgeting , ” said Jeff Stein of The Washington Post .
“ In prior years , the federal @ @ @ @ @ @ @ or eclipsed $ 1 trillion for an entire year .
”

What a difference a year makes.
In June 2019, the federal deficit totaled $8 billion. According to the Treasury Department Monday, the monthly deficit in June 2020 came in at $864 billion – the highest monthly shortfall on record.
A surge in spending for coronavirus relief drove much of the increase, with outlays rising by 223% to $1.1 trillion. At $511 billion, the Paycheck Protection Program, which provides small businesses with forgivable loans, accounted for nearly half of the spending increase.
Federal receipts were down 28% to $241 billion on a year-over-year basis, driven by job losses and the delay in tax filing deadlines.
The June numbers bring the year-to-date deficit to $2.7 trillion, nearly twice the previous full-year record of $1.4 trillion in 2009. Analysts expect the deficit to total roughly $3.8 trillion for the 2020 fiscal year, which ends on September 30.
“June’s deficit figures highlights just how much havoc the coronavirus pandemic has wreaked on U.S. budgeting,” said Jeff Stein of The Washington Post. “In prior years, the federal deficit was considered large when it approached or eclipsed $1 trillion for an entire year.”


thefiscaltimes--2020-07-13--Trump Open to Providing Money to Help Schools Reopen, Kudlow Says

President Trump threatened last week to cut off funding to schools that don ’ t reopen in the fall and Education Secretary Betsy DeVos told Fox News yesterday that public schools that do n't reopen should not get federal money .
But top White House economic adviser Larry Kudlow said Monday that the president is willing to consider providing more money to help return students to classrooms .
“ The president has said that he ’ s open to suggestions about additional funding if it appears that would be necessary in certain states and localities , so he will look @ @ @ @ @ @ @ outside the White House , according to Reuters .
Kudlow made similar comments to Fox Business .
Trump and his administration have been pushing to have students and teachers return to classrooms , even as the coronavirus surges across many states and new national case counts reach record highs .
“ We have to open the schools .
We have to get ‘ em open , ” the president said Monday .
Pelosi , school officials push back : State and local officials along with teachers unions and school administrators have responded to @ @ @ @ @ @ @ that schools will need more money and resources if they are to reopen safely .
`` Let 's show that we put children first , and their education , by putting the resources there .
Because without the resources , we should n't even be thinking about sending them back to school , '' Pelosi said Monday an interview with MSNBC 's Craig Melvin .
How much would it cost ?
“ [ A ] dministrators say they are already struggling to cover the head-spinning logistical and financial challenges of retrofitting buildings , @ @ @ @ @ @ @ and providing students with the academic and emotional support that many will need after a traumatic disruption to their lives , ” Dana Goldstein reported in The New York Times last week .
“ The federal relief package passed in March dedicated $ 13.5 billion to K-12 education — less than 1 percent of the total stimulus .
But education groups estimate that schools will need many times that , and with many local and state budgets already depleted by the economic impact of the coronavirus , it is unclear where it will @ @ @ @ @ @ @ reopening schools has been the subject of some debate , but the Council of Chief State School Officers , a nonprofit representing public education officials , last month estimated it to be between $ 158.1 billion and $ 244.6 billion .
House Democrats passed a bill in May that would provide $ 58 billion in aid local school districts .
Another Democratic proposal would provide $ 175 billion to state educational agencies and school districts .
But those plans haven ’ t gotten Republican support .

President Trump threatened last week to cut off funding to schools that don’t reopen in the fall and Education Secretary Betsy DeVos told Fox News yesterday that public schools that don't reopen should not get federal money. But top White House economic adviser Larry Kudlow said Monday that the president is willing to consider providing more money to help return students to classrooms.
“The president has said that he’s open to suggestions about additional funding if it appears that would be necessary in certain states and localities, so he will look at that,” Kudlow told reporters outside the White House, according to Reuters. Kudlow made similar comments to Fox Business.
Trump and his administration have been pushing to have students and teachers return to classrooms, even as the coronavirus surges across many states and new national case counts reach record highs. “We have to open the schools. We have to get ‘em open,” the president said Monday.
Pelosi, school officials push back: State and local officials along with teachers unions and school administrators have responded to the administration’s pressure by emphasizing that schools will need more money and resources if they are to reopen safely.
"Let's show that we put children first, and their education, by putting the resources there. Because without the resources, we shouldn't even be thinking about sending them back to school," Pelosi said Monday an interview with MSNBC's Craig Melvin.
How much would it cost? “[A]dministrators say they are already struggling to cover the head-spinning logistical and financial challenges of retrofitting buildings, adding staff members and protective gear, and providing students with the academic and emotional support that many will need after a traumatic disruption to their lives,” Dana Goldstein reported in The New York Times last week.
“The federal relief package passed in March dedicated $13.5 billion to K-12 education — less than 1 percent of the total stimulus. But education groups estimate that schools will need many times that, and with many local and state budgets already depleted by the economic impact of the coronavirus, it is unclear where it will come from.”
The cost of safely reopening schools has been the subject of some debate, but the Council of Chief State School Officers, a nonprofit representing public education officials, last month estimated it to be between $158.1 billion and $244.6 billion.
House Democrats passed a bill in May that would provide $58 billion in aid local school districts. Another Democratic proposal would provide $175 billion to state educational agencies and school districts. But those plans haven’t gotten Republican support.


thefiscaltimes--2020-07-13--How Contractors Are Making Millions Selling Masks to the Government

Jason Cardiff didn ’ t want his new business to end up like his last one , an alleged pyramid scheme involving robocalling and selling unwitting customers bogus remedies to lose weight or quit smoking .
One of his ventures , Prolongz , falsely claimed to offer men “ increased ejaculation control.
” “ I am not going to lose another company , ” Cardiff told his lawyer in an April 5 email , just before detailing a fantasy list of people he wanted to place on the board of his new venture , VPL Medical Inc. His wish list @ @ @ @ @ @ @ think tank leader and pundit with connections to the Trump administration , who Cardiff cryptically said could be the company ’ s “ advisor to the White House.
” That didn ’ t work out , Cardiff says .
He also wanted to make sure he had controlling stock of the company and the ability to buy out his business partner if he wanted , according to the email .
“ As I ( have ) raised all the capital and done all the work once again , ” Cardiff wrote in typo-laden @ @ @ @ @ @ @ to lose out on perhaps my biggest company to date .
Further I have a group that wants to put in 10 mil this week.
” Seven days later , VPL was incorporated in California .
Curiously , the former Mercedes Benz salesman left his name off of the business filings , which listed only his partner , Bobby Bedi , as the owner .
Before ProPublica wrote about Cardiff ’ s work with VPL in June , the paperwork appears to have missed the gaze of the Federal Trade Commission , which @ @ @ @ @ @ @ s assets , and a court-appointed receiver who had taken over the family money .
Yet , just 12 days after Cardiff ’ s email , the untested company landed $ 20 million in contracts with two federal agencies to supply cheap surgical masks for health care workers .
That email exchange , along with financial records and contracts submitted to a federal court in California , provide a rare behind-the-scenes look at the nascent coronavirus mask trade , where just about anyone with who registers a corporation or limited liability company can @ @ @ @ @ @ @ public health nightmare with help from a desperate government agency .
The filings illustrate how the federal government is essentially providing seed money to ambitious startups , including some run by people previously accused of fraud .
Mask brokers interviewed by ProPublica described this basic blueprint : Step One : Obtain a government purchase order .
This has become startlingly easy after the Trump administration cut red tape so agencies could order personal protective equipment from nearly anyone who says they can deliver .
Step Two : Leverage that purchase order to get @ @ @ @ @ @ @ command exorbitant returns on a short-term , high-risk bet .
Step Three : Use the cash to buy masks from China .
Once the government accepts and pays , everyone involved gets a cut .
And taxpayers pay inflated prices for essential personal protective equipment , or PPE , that is once again in short supply as the rate of COVID infection continues to rise .
“ The tough part is not getting the government purchase order or the financing , ” Cardiff explained in an interview .
“ The tough part is @ @ @ @ @ @ @ failed , his company delivered the promised 8 million masks to the Department of Veterans Affairs , the agency confirmed .
It shipped materials in from China and transported them by air to a VA warehouse in Chicago , records show .
“ These all get fulfilled — that ’ s the difference , ” he said .
“ As you can see , the government is desperate for its citizens , so it reaches out with a broad reach and says , ‘ If you can get masks , I ’ ll @ @ @ @ @ @ @ got paid .
On the $ 5.4 million deal to provide masks to VA hospitals , court records show Cardiff ’ s personal profit was $ 420,000 .
Bedi , the listed owner who a court receiver alleges is Cardiff ’ s equal partner , also walked away with $ 420,000 .
Stacey Barker , a marketing consultant , earned a $ 250,000 commission just for arranging the deal with the VA. A pending $ 14.1 million deal with the Department of Health and Human Services , which oversees the national stockpile , @ @ @ @ @ @ @ 2 million in profit , according to court records .
Using a government order to get a loan to buy goods is not a new practice .
Contractors routinely get what ’ s called purchase order financing from specialized lenders .
But companies with little history and little credit , as is the case with many pop-up mask traders , often seek financing from private investors .
When VPL got its VA purchase order , documents show that it turned to a guy named Keith Langlands and a company registered in his name @ @ @ @ @ @ @ $ 3 million loan to buy masks from a Chinese vendor .
But those details also have come under question .
A lawyer for Langlands said Friday that Langlands , a Las Vegas accountant who markets himself as a leading expert in the niche realm of setting up captive insurance firms , had nothing to do with VPL .
Someone founded Wave Crest and used his name , said lawyer Michael Pariente .
“ We didn ’ t know anything about this until we got your call , ” Pariente said .
“ @ @ @ @ @ @ @ never invested , and he didn ’ t sign that contract.
” The documents suggest that the lender was to be repaid an advance plus a cut on each of the 8 million masks bought by the VA .
The first batch of masks would net 5 cents per mask , a hefty return for masks that , before the pandemic , cost only a few pennies .
A second expected “ tranche ” would yield even more — 7.5 cents a mask , according to the documents .
The total return on @ @ @ @ @ @ @ the records show , or nearly 17 % in just a few weeks .
Cardiff says the investment “ just came about by calling to different people about who was doing different types of transactions in PPE financing.
” They all charged high fees , he said .
“ Look , it ’ s a high-risk transaction for anybody , ” he explained .
“ You ’ re wiring money to China .
You ’ re hoping the masks show up.
’ ’ The investor ’ s fee cited in the documents is @ @ @ @ @ @ @ ultimately delivered to the VA. ProPublica also reviewed similar broker-investor arrangements involving the far more effective N95 mask , which cost about $ 1 each before the pandemic .
Agencies such as the Federal Emergency Management Agency have ordered N95s at six to seven times that price , yet broker fees on those much higher quality masks are also often about 5 to 10 cents a mask .
Today , an unscientific perusal of Amazon shows the less effective surgical masks pricing for anywhere from $ 7 to $ 25 for a box @ @ @ @ @ @ @ quarter apiece , depending on quality , which varies widely .
The VA paid about 68 cents .
This transaction is just one small example of the thousands of murky deals that have sprung from the Trump administration ’ s $ 17.7 billion — and counting — spending spree to address the pandemic .
Of that , about $ 6.8 billion was spent on PPE and related equipment , a ProPublica data analysis shows .
More than 2,000 of those contracts , including two with VPL , were given without any competitive bidding @ @ @ @ @ @ @ VPL , got contracts totaling $ 2.29 billion .
For the VA masks themselves , records show VPL paid a Chinese manufacturer just $ 2.26 million , less than half the total taxpayers would eventually pay .
Another $ 1.2 million went to shipping and logistics .
After overhead and their personal payouts , the company invested another $ 285,000 from the VA deal to purchase mask-making machines from China .
On its website the company is now taking orders for masks labeled “ Made in USA by VPL Medical.
” The new @ @ @ @ @ @ @ masks a day , Cardiff said .
“ It ’ s easy for you to go , ‘ Oh , well , Cardiff is a fraud with the FTC , but we ’ re delivering masks .
No one is absconding with anything , ” Cardiff said .
“ We make masks in the United States and we do source the raw material from abroad , but only because no one makes these raw materials in the U.S. ” About $ 2.8 million remains in VPL bank accounts , according to the court @ @ @ @ @ @ @ to also freeze that cash .
But it owes more than it has on hand .
The latest freeze stems from an ongoing suit filed by the FTC , which shut down a different company operated by Cardiff and his wife , describing it as a pyramid scheme .
It alleged that the firm engaged in robocalling people and making “ false and unsubstantiated claims for dissolvable film strips advertised for smoking cessation , weight loss , and male sexual performance.
” A federal court issued an injunction , shutting down the Cardiffs @ @ @ @ @ @ @ In March , Cardiff was found in contempt of court for hiding about a million dollars and funding a lavish lifestyle through an account he had opened in the name of his 90-year-old father .
Most recently , the court receiver alleged that Cardiff concealed his recent windfall by keeping his name off the official business records and cites a photo of a VPL organizational chart found at its office that shows him at the top with Bedi , as well as meeting minutes and contracts that suggest they ’ re equal partners @ @ @ @ @ @ @ he ’ s getting paid the same amount as the official owner , but only as a consultant .
Asked why he ’ s making the same amount as the owner , he pointed out that gifted professional athletes often earn more money than their coaches .
He dismissed the April email in which he laid out a vision for the company as “ just rough thoughts and ideas.
” “ It ’ s an email , ” he argued .
“ It ’ s one email .
It doesn ’ t detail @ @ @ @ @ @ @ some rough thoughts.
” In an email , Barker , VPL ’ s own public relations and sales consultant , contradicted that defense .
“ Jason Cardiff is the founder , ” she told ProPublica .
Kennedy , who did not respond to a request for comment , was never added to the board , Cardiff said .
Cardiff says the FTC has unfairly targeted him and is now standing in the way of getting life-saving gear to people who need it .
“ The bigger story here is — Why would you @ @ @ @ @ @ @ .
With the mask business in receivership , it ’ s unclear if VPL will be able to deliver on its promise of 20 million American-made 3-ply masks to the national stockpile .
Cardiff says he ’ s hopeful .
“ Look , it ’ s a global pandemic right now , ” he said .
“ People need PPE.
” This story originally appeared on ProPublica , a Pulitzer Prize-winning investigative newsroom .
Sign up for The Big Story newsletter to receive stories like this one in your inbox .

Jason Cardiff didn’t want his new business to end up like his last one, an alleged pyramid scheme involving robocalling and selling unwitting customers bogus remedies to lose weight or quit smoking. One of his ventures, Prolongz, falsely claimed to offer men “increased ejaculation control.”
“I am not going to lose another company,” Cardiff told his lawyer in an April 5 email, just before detailing a fantasy list of people he wanted to place on the board of his new venture, VPL Medical Inc.
His wish list included Brian Travis Kennedy, a right-wing think tank leader and pundit with connections to the Trump administration, who Cardiff cryptically said could be the company’s “advisor to the White House.” That didn’t work out, Cardiff says.
He also wanted to make sure he had controlling stock of the company and the ability to buy out his business partner if he wanted, according to the email.
“As I (have) raised all the capital and done all the work once again,” Cardiff wrote in typo-laden prose, “I am not going to lose out on perhaps my biggest company to date. Further I have a group that wants to put in 10 mil this week.”
Seven days later, VPL was incorporated in California. Curiously, the former Mercedes Benz salesman left his name off of the business filings, which listed only his partner, Bobby Bedi, as the owner. Before ProPublica wrote about Cardiff’s work with VPL in June, the paperwork appears to have missed the gaze of the Federal Trade Commission, which had frozen his and his wife’s assets, and a court-appointed receiver who had taken over the family money.
Yet, just 12 days after Cardiff’s email, the untested company landed $20 million in contracts with two federal agencies to supply cheap surgical masks for health care workers.
That email exchange, along with financial records and contracts submitted to a federal court in California, provide a rare behind-the-scenes look at the nascent coronavirus mask trade, where just about anyone with who registers a corporation or limited liability company can get rich off the nation’s public health nightmare with help from a desperate government agency.
The filings illustrate how the federal government is essentially providing seed money to ambitious startups, including some run by people previously accused of fraud. Mask brokers interviewed by ProPublica described this basic blueprint:
Step One: Obtain a government purchase order. This has become startlingly easy after the Trump administration cut red tape so agencies could order personal protective equipment from nearly anyone who says they can deliver.
Step Two: Leverage that purchase order to get financing from private investors who can easily command exorbitant returns on a short-term, high-risk bet.
Step Three: Use the cash to buy masks from China.
Once the government accepts and pays, everyone involved gets a cut. And taxpayers pay inflated prices for essential personal protective equipment, or PPE, that is once again in short supply as the rate of COVID infection continues to rise.
“The tough part is not getting the government purchase order or the financing,” Cardiff explained in an interview. “The tough part is executing.”
Unlike many contractors who have failed, his company delivered the promised 8 million masks to the Department of Veterans Affairs, the agency confirmed. It shipped materials in from China and transported them by air to a VA warehouse in Chicago, records show.
“These all get fulfilled — that’s the difference,” he said. “As you can see, the government is desperate for its citizens, so it reaches out with a broad reach and says, ‘If you can get masks, I’ll pay you.’”
And VPL definitely got paid.
On the $5.4 million deal to provide masks to VA hospitals, court records show Cardiff’s personal profit was $420,000.
Bedi, the listed owner who a court receiver alleges is Cardiff’s equal partner, also walked away with $420,000.
Stacey Barker, a marketing consultant, earned a $250,000 commission just for arranging the deal with the VA.
A pending $14.1 million deal with the Department of Health and Human Services, which oversees the national stockpile, could net Cardiff and Bedi about $2 million in profit, according to court records.
Using a government order to get a loan to buy goods is not a new practice. Contractors routinely get what’s called purchase order financing from specialized lenders. But companies with little history and little credit, as is the case with many pop-up mask traders, often seek financing from private investors.
When VPL got its VA purchase order, documents show that it turned to a guy named Keith Langlands and a company registered in his name, Wave Crest Management, for a $3 million loan to buy masks from a Chinese vendor. But those details also have come under question.
A lawyer for Langlands said Friday that Langlands, a Las Vegas accountant who markets himself as a leading expert in the niche realm of setting up captive insurance firms, had nothing to do with VPL. Someone founded Wave Crest and used his name, said lawyer Michael Pariente.
“We didn’t know anything about this until we got your call,” Pariente said. “Keith never signed that contract. Keith never invested, and he didn’t sign that contract.”
The documents suggest that the lender was to be repaid an advance plus a cut on each of the 8 million masks bought by the VA. The first batch of masks would net 5 cents per mask, a hefty return for masks that, before the pandemic, cost only a few pennies. A second expected “tranche” would yield even more — 7.5 cents a mask, according to the documents.
The total return on the investment would be $500,000, the records show, or nearly 17% in just a few weeks.
Cardiff says the investment “just came about by calling to different people about who was doing different types of transactions in PPE financing.” They all charged high fees, he said.
“Look, it’s a high-risk transaction for anybody,” he explained. “You’re wiring money to China. You’re hoping the masks show up.’’
The investor’s fee cited in the documents is also high considering the type of masks ultimately delivered to the VA. ProPublica also reviewed similar broker-investor arrangements involving the far more effective N95 mask, which cost about $1 each before the pandemic. Agencies such as the Federal Emergency Management Agency have ordered N95s at six to seven times that price, yet broker fees on those much higher quality masks are also often about 5 to 10 cents a mask.
Today, an unscientific perusal of Amazon shows the less effective surgical masks pricing for anywhere from $7 to $25 for a box of 50 — often less than a quarter apiece, depending on quality, which varies widely. The VA paid about 68 cents.
This transaction is just one small example of the thousands of murky deals that have sprung from the Trump administration’s $17.7 billion — and counting — spending spree to address the pandemic. Of that, about $6.8 billion was spent on PPE and related equipment, a ProPublica data analysis shows.
More than 2,000 of those contracts, including two with VPL, were given without any competitive bidding. More than 470 contractors, including VPL, got contracts totaling $2.29 billion.
For the VA masks themselves, records show VPL paid a Chinese manufacturer just $2.26 million, less than half the total taxpayers would eventually pay. Another $1.2 million went to shipping and logistics. After overhead and their personal payouts, the company invested another $285,000 from the VA deal to purchase mask-making machines from China.
On its website the company is now taking orders for masks labeled “Made in USA by VPL Medical.” The new machines can spit out half a million masks a day, Cardiff said.
“It’s easy for you to go, ‘Oh, well, Cardiff is a fraud with the FTC, but we’re delivering masks. No one is absconding with anything,” Cardiff said. “We make masks in the United States and we do source the raw material from abroad, but only because no one makes these raw materials in the U.S.”
About $2.8 million remains in VPL bank accounts, according to the court receiver who convinced a federal court judge to also freeze that cash. But it owes more than it has on hand.
The latest freeze stems from an ongoing suit filed by the FTC, which shut down a different company operated by Cardiff and his wife, describing it as a pyramid scheme. It alleged that the firm engaged in robocalling people and making “false and unsubstantiated claims for dissolvable film strips advertised for smoking cessation, weight loss, and male sexual performance.”
A federal court issued an injunction, shutting down the Cardiffs’ business and freezing their assets. In March, Cardiff was found in contempt of court for hiding about a million dollars and funding a lavish lifestyle through an account he had opened in the name of his 90-year-old father.
Most recently, the court receiver alleged that Cardiff concealed his recent windfall by keeping his name off the official business records and cites a photo of a VPL organizational chart found at its office that shows him at the top with Bedi, as well as meeting minutes and contracts that suggest they’re equal partners.
Cardiff denies the allegation and said he’s getting paid the same amount as the official owner, but only as a consultant. Asked why he’s making the same amount as the owner, he pointed out that gifted professional athletes often earn more money than their coaches.
He dismissed the April email in which he laid out a vision for the company as “just rough thoughts and ideas.”
“It’s an email,” he argued. “It’s one email. It doesn’t detail my hope for anything. It details some rough thoughts.”
In an email, Barker, VPL’s own public relations and sales consultant, contradicted that defense.
“Jason Cardiff is the founder,” she told ProPublica.
Kennedy, who did not respond to a request for comment, was never added to the board, Cardiff said.
Cardiff says the FTC has unfairly targeted him and is now standing in the way of getting life-saving gear to people who need it.
“The bigger story here is — Why would you intervene in that?” he said.
With the mask business in receivership, it’s unclear if VPL will be able to deliver on its promise of 20 million American-made 3-ply masks to the national stockpile. Cardiff says he’s hopeful.
“Look, it’s a global pandemic right now,” he said. “People need PPE.”
This story originally appeared on ProPublica, a Pulitzer Prize-winning investigative newsroom. Sign up for The Big Story newsletter to receive stories like this one in your inbox.


thefiscaltimes--2020-07-09--IRS Budget Boost Would More Than Pay for Itself, CBO Says

Boosting the Internal Revenue Service ’ s budget for audits and collections would pay for itself as much as three times over , the Congressional Budget Office estimated in a report released Wednesday .
Increasing IRS funding for examinations and collections by $ 20 billion over 10 years would raise federal revenues by $ 61 billion , while a $ 40 billion increase would add $ 103 billion in revenues , CBO said .
It noted that its estimates were uncertain , but it also said the figures “ only capture the direct effect of enforcement activities , ” not @ @ @ @ @ @ @ taxpayers get scared straight by stepped-up enforcement .
The CBO report also describes how budget cuts over the last decade have weakened IRS enforcement and potentially helped perpetuate a yawning tax gap — the amount of taxes that go uncollected each year , mostly as the result of underreported income .
The IRS estimates that the gap averaged $ 441 billion a year from 2011 through 2013 , and narrowed to $ 381 billion a year as the result of IRS enforcement and collections .
The current tax gap is almost certainly higher @ @ @ @ @ @ @ to $ 600 billion .
IRS funding , adjusted for inflation , is 20 % below where it was in 2010 , according to CBO , and budget cuts have resulted in the elimination of 22 % of the tax agency ’ s staff .
Funding and staff allocated to enforcement activities have fallen by about 30 % since 2010 .
The share of individual tax returns audited decreased by 46 % between 2010 and 2018 , while corporate audits fell by 37 % .
Audits of taxpayers with more than $ 1 @ @ @ @ @ @ @ .
The report , prepared at the request of Sen. Bernie Sanders ( I-VT ) , the ranking member of the Senate Budget Committee , came as a House Appropriations subcommittee advanced a spending bill for 2021 that would increase the IRS budget by about $ 600 million , or roughly 5 % , to $ 12.1 billion .
“ The agency would receive funding increases for taxpayer services , enforcement , operations support and business systems modernization , ” The Hill reports .
That measure now heads to the full committee for @ @ @ @ @ @ @ by former Treasury Secretary Larry Summers and Natasha Sarin , a professor at the University of Pennsylvania , suggesting that at least 70 % of the tax gap comes from underpayment by those with incomes in the top 1 % .
“ Make no mistake : the primary beneficiaries of IRS funding cuts are wealthy tax cheats and large corporations , ” Sanders said in a statement .
“ Congress is leaving hundreds of billions of dollars in taxes uncollected from the wealthy .
We have got to invest in a robust IRS @ @ @ @ @ @ @ tax evasion so we can prioritize those resources to ensure people ’ s basic needs .
”

Boosting the Internal Revenue Service’s budget for audits and collections would pay for itself as much as three times over, the Congressional Budget Office estimated in a report released Wednesday.
Increasing IRS funding for examinations and collections by $20 billion over 10 years would raise federal revenues by $61 billion, while a $40 billion increase would add $103 billion in revenues, CBO said.
It noted that its estimates were uncertain, but it also said the figures “only capture the direct effect of enforcement activities,” not the indirect gains that could result as taxpayers get scared straight by stepped-up enforcement.
The CBO report also describes how budget cuts over the last decade have weakened IRS enforcement and potentially helped perpetuate a yawning tax gap — the amount of taxes that go uncollected each year, mostly as the result of underreported income. The IRS estimates that the gap averaged $441 billion a year from 2011 through 2013, and narrowed to $381 billion a year as the result of IRS enforcement and collections. The current tax gap is almost certainly higher, with some estimates putting it closer to $600 billion.
IRS funding, adjusted for inflation, is 20% below where it was in 2010, according to CBO, and budget cuts have resulted in the elimination of 22% of the tax agency’s staff. Funding and staff allocated to enforcement activities have fallen by about 30% since 2010. The share of individual tax returns audited decreased by 46% between 2010 and 2018, while corporate audits fell by 37%. Audits of taxpayers with more than $1 million in income fell by 63%.
The report, prepared at the request of Sen. Bernie Sanders (I-VT), the ranking member of the Senate Budget Committee, came as a House Appropriations subcommittee advanced a spending bill for 2021 that would increase the IRS budget by about $600 million, or roughly 5%, to $12.1 billion. “The agency would receive funding increases for taxpayer services, enforcement, operations support and business systems modernization,” The Hill reports. That measure now heads to the full committee for further debate.
Sanders pointed to estimates by former Treasury Secretary Larry Summers and Natasha Sarin, a professor at the University of Pennsylvania, suggesting that at least 70% of the tax gap comes from underpayment by those with incomes in the top 1%.
“Make no mistake: the primary beneficiaries of IRS funding cuts are wealthy tax cheats and large corporations,” Sanders said in a statement. “Congress is leaving hundreds of billions of dollars in taxes uncollected from the wealthy. We have got to invest in a robust IRS that focuses on the biggest culprits of tax evasion so we can prioritize those resources to ensure people’s basic needs.”


thefiscaltimes--2020-07-14--More Than 5 Million Have Lost Health Insurance Due to Coronavirus: Study

About 5.4 million workers who lost their jobs between February and May are now uninsured , according a new analysis from Families USA , a nonpartisan consumer health advocacy organization .
The increase in the number of uninsured surpasses the annual record set during the recession in 2008 , when 3.9 million workers lost their health insurance , the group said Tuesday .
Nearly half of the losses ( 46 % ) came in just five states : California , Texas , Florida , New York and North Carolina .
No definitive numbers yet .
The Families USA analysis provides @ @ @ @ @ @ @ and we won ’ t have official numbers until next year , when the federal government publishes its own analysis of insurance coverage for 2020 .
Other groups have provided estimates , as well .
The Kaiser Family Foundation says that about 27 million people have lost health insurance coverage , a considerably larger number that includes family members of the formerly insured .
And the Urban Institute and the Robert Wood Johnson Foundation released a study that estimates that about 10.1 million people will lose employer-provided coverage by the end of the @ @ @ @ @ @ @ than one in seven now lack insurance .
About 16 % of Americans are now uninsured , Families USA estimates , and many of the states experiencing spikes in the coronavirus have higher levels of uninsured residents .
In Texas , 29 % of adults under the age of 65 are uninsured , while in Florida the number is 25 % .
Why it matters .
The loss of health insurance is by definition bad news , but it ’ s even more so in the middle of a national health crisis .
@ @ @ @ @ @ @ pandemic involving a highly infectious , deadly disease , especially in states that are allowing residents to be in closer personal contact by attempting to reopen their economies – often the same states that are now experiencing significant spikes in COVID-19 infection rates , ” the group said .

About 5.4 million workers who lost their jobs between February and May are now uninsured, according a new analysis from Families USA, a nonpartisan consumer health advocacy organization.
The increase in the number of uninsured surpasses the annual record set during the recession in 2008, when 3.9 million workers lost their health insurance, the group said Tuesday. Nearly half of the losses (46%) came in just five states: California, Texas, Florida, New York and North Carolina.
No definitive numbers yet. The Families USA analysis provides an estimate based on current data, and we won’t have official numbers until next year, when the federal government publishes its own analysis of insurance coverage for 2020. Other groups have provided estimates, as well. The Kaiser Family Foundation says that about 27 million people have lost health insurance coverage, a considerably larger number that includes family members of the formerly insured. And the Urban Institute and the Robert Wood Johnson Foundation released a study that estimates that about 10.1 million people will lose employer-provided coverage by the end of the year due to the coronavirus.
More than one in seven now lack insurance. About 16% of Americans are now uninsured, Families USA estimates, and many of the states experiencing spikes in the coronavirus have higher levels of uninsured residents. In Texas, 29% of adults under the age of 65 are uninsured, while in Florida the number is 25%.
Why it matters. The loss of health insurance is by definition bad news, but it’s even more so in the middle of a national health crisis. “This is particularly problematic during a pandemic involving a highly infectious, deadly disease, especially in states that are allowing residents to be in closer personal contact by attempting to reopen their economies – often the same states that are now experiencing significant spikes in COVID-19 infection rates,” the group said.


thefiscaltimes--2020-07-14--Chart of the Day: Trump’s Massive Farm Bailouts

Direct aid to farmers has jumped under President Trump , from $ 11.5 billion in 2017 to an all-time high @ @ @ @ @ counting this year , as the administration seeks to ease the pain of its tariff @ @ @ @ @ .
“ But as agriculture grows more reliant on unprecedented taxpayer support , farm policy @ @ @ @ @ the subsidies are growing too big and too fast , with no strings attached and @ @ @ @ @ and that Washington could have a difficult time shutting off the spigot , ” Politico @ @ @ @ @ .

Direct aid to farmers has jumped under President Trump, from $11.5 billion in 2017 to an all-time high of $32 billion and counting this year, as the administration seeks to ease the pain of its tariff wars and the coronavirus pandemic. “But as agriculture grows more reliant on unprecedented taxpayer support, farm policy experts and watchdog groups warn the subsidies are growing too big and too fast, with no strings attached and little oversight from Congress — and that Washington could have a difficult time shutting off the spigot,” Politico agriculture reporter Ryan McCrimmon writes.


thefiscaltimes--2020-07-14--Biden Outlines $2 Trillion Green Energy Plan

Joe Biden on Tuesday announced a plan to spend $ 2 trillion over four years on green energy , transportation and infrastructure .
The plan is part of a sweeping proposal to address climate change while also boosting an economy still reeling from the coronavirus recession .
“ When I think about climate change , the word I think of is ‘ jobs , ’ ” Biden said in a speech delivered in Wilmington , Delaware .
More money , faster : Earlier in the campaign , Biden offered a $ 1.7 trillion climate plan spread out over 10 years @ @ @ @ @ @ @ ’ s leftward shift , and growing concerns about the need to spur economic growth , the former vice president has increased his proposed spending while accelerating the timetable .
A boost for electric cars : Among the many proposals is a plan to subsidize consumers who trade in gas-powered cars for American-made electric vehicles .
Carbon-free power in 15 years : Biden calls for the elimination of carbon pollution from the power sector by 2035 , and a 100 % “ clean energy economy ” by 2050 .
For more details , @ @ @ @ @ @ @ reports in The New York Times and The Wall Street Journal .

Joe Biden on Tuesday announced a plan to spend $2 trillion over four years on green energy, transportation and infrastructure.
The plan is part of a sweeping proposal to address climate change while also boosting an economy still reeling from the coronavirus recession.
“When I think about climate change, the word I think of is ‘jobs,’” Biden said in a speech delivered in Wilmington, Delaware.
More money, faster: Earlier in the campaign, Biden offered a $1.7 trillion climate plan spread out over 10 years. But in a sign of Biden’s leftward shift, and growing concerns about the need to spur economic growth, the former vice president has increased his proposed spending while accelerating the timetable.
A boost for electric cars: Among the many proposals is a plan to subsidize consumers who trade in gas-powered cars for American-made electric vehicles.
Carbon-free power in 15 years: Biden calls for the elimination of carbon pollution from the power sector by 2035, and a 100% “clean energy economy” by 2050.
For more details, see Biden’s campaign website and reports in The New York Times and The Wall Street Journal.


thefiscaltimes--2020-07-13--Millionaires Say: Tax Us More to Pay for Pandemic

Dozens of wealthy individuals calling themselves Millionaires for Humanity are asking the Trump administration and other Western governments to raise taxes on the rich in order to fund recovery efforts during the coronavirus crisis .
“ As Covid-19 strikes the world , millionaires like us have a critical role to play in healing our world , ” the group said in an open letter Monday .
“ We are not driving the ambulances that will bring the ill to hospitals .
We are not restocking grocery store shelves or delivering food door to door .
But we do have money @ @ @ @ @ @ @ is desperately needed now and will continue to be needed in the years ahead , as our world recovers from this crisis.
” The group , which is dominated by Americans but includes citizens of the U.K. , Germany , New Zealand , Canada and the Netherlands , said it was asking “ our governments to raise taxes on people like us .
Immediately .
Substantially .
Permanently.
” The letter ’ s signatories include Walt Disney Co. heir Abigail Disney , Ben & Jerry ’ s co-founder Jerry Greenfield and former BlackRock @ @ @ @ @ @ @ The Guardian , the letter was organized by several liberal groups including the Patriotic Millionaires , Oxfam and the Club of Rome .
Some additional quotes from the letter : • “ The impact of this crisis will last for decades .
It could push half a billion more people into poverty .
Hundreds of millions of people will lose their jobs as businesses close , some permanently .
Already , there are nearly a billion children out of school , many with no access to the resources they need to continue their @ @ @ @ @ @ @ of hospital beds , protective masks , and ventilators is a painful , daily reminder of the inadequate investment made in public health systems across the world.
” • “ The problems caused by , and revealed by , Covid-19 can ’ t be solved with charity , no matter how generous .
Government leaders must take the responsibility for raising the funds we need and spending them fairly .
We can ensure we adequately fund our health systems , schools , and security through a permanent tax increase on the wealthiest people @ @ @ @ @ @ @ ” • “ Unlike tens of millions of people around the world , we do not have to worry about losing our jobs , our homes , or our ability to support our families .
We are not fighting on the frontlines of this emergency and we are much less likely to be its victims .
So please .
Tax us .
Tax us .
Tax us .
It is the right choice .
It is the only choice .
Humanity is more important than our money .
”

Dozens of wealthy individuals calling themselves Millionaires for Humanity are asking the Trump administration and other Western governments to raise taxes on the rich in order to fund recovery efforts during the coronavirus crisis.
“As Covid-19 strikes the world, millionaires like us have a critical role to play in healing our world,” the group said in an open letter Monday. “We are not driving the ambulances that will bring the ill to hospitals. We are not restocking grocery store shelves or delivering food door to door. But we do have money, lots of it. Money that is desperately needed now and will continue to be needed in the years ahead, as our world recovers from this crisis.”
The group, which is dominated by Americans but includes citizens of the U.K., Germany, New Zealand, Canada and the Netherlands, said it was asking “our governments to raise taxes on people like us. Immediately. Substantially. Permanently.”
The letter’s signatories include Walt Disney Co. heir Abigail Disney, Ben & Jerry’s co-founder Jerry Greenfield and former BlackRock managing director Morris Pearl. According to The Guardian, the letter was organized by several liberal groups including the Patriotic Millionaires, Oxfam and the Club of Rome.
Some additional quotes from the letter:
“The impact of this crisis will last for decades. It could push half a billion more people into poverty. Hundreds of millions of people will lose their jobs as businesses close, some permanently. Already, there are nearly a billion children out of school, many with no access to the resources they need to continue their learning. And of course the absence of hospital beds, protective masks, and ventilators is a painful, daily reminder of the inadequate investment made in public health systems across the world.”
“The problems caused by, and revealed by, Covid-19 can’t be solved with charity, no matter how generous. Government leaders must take the responsibility for raising the funds we need and spending them fairly. We can ensure we adequately fund our health systems, schools, and security through a permanent tax increase on the wealthiest people on the planet, people like us.”


thefiscaltimes--2020-07-15--Schumer Pushes for Elimination of SALT Deduction Cap

Senate Minority Leader Chuck Schumer ( D-NY ) on Tuesday called on Republicans to eliminate the cap on deductibility of state and local taxes ( SALT ) as part of the next coronavirus relief package .
The HEROES Act , passed by the House in May , would repeal the cap for 2020 and 2021 .
That legislation stands no chance of advancing in the Republican-controlled Senate , but Schumer said that keeping the SALT provision from that bill is one of the top priorities for Senate Democrats .
“ We need to cushion the blow of this virus , @ @ @ @ @ @ @ New York ’ s Newsday .
“ The SALT cap hurts people affected by the virus .
It hurts so many of the metropolitan areas like New York and so we want to change it and we will.
” Repealing the $ 10,000 cap , imposed as part of the 2017 Republican tax law , would overwhelmingly benefit high-income taxpayers in high-tax states like New York , New Jersey , Connecticut and California .
In a statement to Newsday , Senate Majority Leader Mitch McConnell ( R-KY ) said eliminating the cap “ @ @ @ @ @ @ @ expensive gifts to wealthy people in high-tax blue states . ''

Senate Minority Leader Chuck Schumer (D-NY) on Tuesday called on Republicans to eliminate the cap on deductibility of state and local taxes (SALT) as part of the next coronavirus relief package.
The HEROES Act, passed by the House in May, would repeal the cap for 2020 and 2021. That legislation stands no chance of advancing in the Republican-controlled Senate, but Schumer said that keeping the SALT provision from that bill is one of the top priorities for Senate Democrats. “We need to cushion the blow of this virus,” Schumer said Tuesday, according to New York’s Newsday. “The SALT cap hurts people affected by the virus. It hurts so many of the metropolitan areas like New York and so we want to change it and we will.”
Repealing the $10,000 cap, imposed as part of the 2017 Republican tax law, would overwhelmingly benefit high-income taxpayers in high-tax states like New York, New Jersey, Connecticut and California. In a statement to Newsday, Senate Majority Leader Mitch McConnell (R-KY) said eliminating the cap “would change tax law to provide massively expensive gifts to wealthy people in high-tax blue states."


thefiscaltimes--2020-07-15--How Big Should the Next Coronavirus Bill Be?

The coronavirus crisis will likely depress the economy for years to come , reducing output by trillions of dollars .
According to a new analysis by the Committee for a Responsible Federal Budget , under current law the output gap — defined as the difference between actual output and the potential output produced by an economy firing on all cylinders — will total $ 750 billion over the next six months , and $ 2 trillion over the next two years .
The next stimulus package can help close that gap , CRFB says , and policymakers should consider how @ @ @ @ @ @ @ respect to boosting output .
Much depends on the multiplier effect of different kinds of spending , with some outlays having a more powerful effect on output than others .
A dollar of spending on unemployment benefits , for example , might produce as much as $ 1.90 in economic activity , while a dollar of spending on aid to states might produce as little as 40 cents .
Using estimates from the Congressional Budget Office , CRFB runs through various scenarios showing how much federal spending would be required to close the @ @ @ @ @ @ @ For example , with a fiscal multiplier of 1.5 it would take $ 500 billion to close to output gap over the next six months , $ 850 billion to close it over the next year , and $ 1.4 trillion over two years , ” CRFB says .
“ In contrast , with a 0.5 multiplier , it would take $ 1.5 trillion of funding to close the output gap over the next six months , $ 2.5 trillion to close it over the next year , and $ 4 trillion to @ @ @ @ @ @ @ ” Alternatively , policymakers could target personal incomes rather than overall economic output .
The cost of making up for lost incomes via direct transfers would come to about $ 200 billion over six months and $ 1.4 trillion over two years , CRFB says .

The coronavirus crisis will likely depress the economy for years to come, reducing output by trillions of dollars. According to a new analysis by the Committee for a Responsible Federal Budget, under current law the output gap — defined as the difference between actual output and the potential output produced by an economy firing on all cylinders — will total $750 billion over the next six months, and $2 trillion over the next two years.
The next stimulus package can help close that gap, CRFB says, and policymakers should consider how effective their spending plans would be with respect to boosting output. Much depends on the multiplier effect of different kinds of spending, with some outlays having a more powerful effect on output than others. A dollar of spending on unemployment benefits, for example, might produce as much as $1.90 in economic activity, while a dollar of spending on aid to states might produce as little as 40 cents.
Using estimates from the Congressional Budget Office, CRFB runs through various scenarios showing how much federal spending would be required to close the output given different multiplier effects.
“For example, with a fiscal multiplier of 1.5 it would take $500 billion to close to output gap over the next six months, $850 billion to close it over the next year, and $1.4 trillion over two years,” CRFB says. “In contrast, with a 0.5 multiplier, it would take $1.5 trillion of funding to close the output gap over the next six months, $2.5 trillion to close it over the next year, and $4 trillion to close it over the next two years.”
Alternatively, policymakers could target personal incomes rather than overall economic output. The cost of making up for lost incomes via direct transfers would come to about $200 billion over six months and $1.4 trillion over two years, CRFB says.


thefiscaltimes--2020-07-15--Bernanke Urges Congress to Provide Billions More for States

Former Federal Reserve Chairman Ben Bernanke is urging Congress to deliver hundreds of billions of dollars in additional aid to states whose budgets have been ravaged by the coronavirus pandemic , warning that a federal pivot to austerity combined with state budget and job cuts could otherwise prolong the downturn much as they did a decade ago .
“ Congress must act decisively — and it must act in ways that don ’ t repeat mistakes of the recent past , during the Great Recession , ” Bernanke , who ’ s now a distinguished fellow in residence at the @ @ @ @ @ @ @ New Jersey ’ s Restart and Recovery Commission — writes in a New York Times op-ed .
Bernanke says that the $ 150 billion provided to state and local governments in the CARES Act in March won ’ t be enough : “ States and localities are in desperate need of additional federal intervention before the bulk of the CARES Act funding expires this summer .
Budget gaps like the one in New Jersey can not be closed by austerity alone .
Multiply New Jersey ’ s problems to reflect the experiences of @ @ @ @ @ @ @ governments and the result , without more help from Congress , could be a significantly worse and protracted recession .
… “ This new aid package must be significantly larger and provide not only assistance for state and local governments but also continued support for the unemployed , investments in public health and aid as needed to stabilize aggregate demand and restore full employment.
” Read the full piece at The New York Times .

Former Federal Reserve Chairman Ben Bernanke is urging Congress to deliver hundreds of billions of dollars in additional aid to states whose budgets have been ravaged by the coronavirus pandemic, warning that a federal pivot to austerity combined with state budget and job cuts could otherwise prolong the downturn much as they did a decade ago.
“Congress must act decisively — and it must act in ways that don’t repeat mistakes of the recent past, during the Great Recession,” Bernanke, who’s now a distinguished fellow in residence at the Brookings Institution — and a member of New Jersey’s Restart and Recovery Commission — writes in a New York Times op-ed.
Bernanke says that the $150 billion provided to state and local governments in the CARES Act in March won’t be enough:
“States and localities are in desperate need of additional federal intervention before the bulk of the CARES Act funding expires this summer. Budget gaps like the one in New Jersey cannot be closed by austerity alone. Multiply New Jersey’s problems to reflect the experiences of 50 state governments and thousands of local governments and the result, without more help from Congress, could be a significantly worse and protracted recession. …
“This new aid package must be significantly larger and provide not only assistance for state and local governments but also continued support for the unemployed, investments in public health and aid as needed to stabilize aggregate demand and restore full employment.”
Read the full piece at The New York Times.


thefiscaltimes--2020-07-15--Poll: 62% Say Trump Is Hurting Coronavirus Response

Approval of President Trump ’ s handling of the coronavirus pandemic has fallen to its lowest level since March , according to a new Quinnipiac University poll .
A sizeable majority of registered voters , 62 % , say the president is hurting efforts to combat the virus , the poll finds .
Just 31 % say that Trump is helping in the fight against the virus , and 35 % approve of the way he is handling the response to the pandemic .
Two-thirds of voters , 67 % , say they do not trust the information the president @ @ @ @ @ @ @ new Wall Street Journal/NBC News poll similarly finds that 37 % of voters approve of Trump ’ s handling of the coronavirus outbreak and 59 % disapprove .
On the economy : Approval of Trump ’ s handling of the economy has also slipped to 44 % , down from 52 % in June .
`` Trump 's strongest card , the economy , shredded by a killer virus , may have left the president with no go-to issue or trait to stave off defeat ... not leadership , not empathy , not @ @ @ @ @ @ @ handling of COVID-19 , '' said Quinnipiac University Polling Analyst Tim Malloy .
The Wall Street Journal/NBC News poll , by contrast , finds approval of Trump ’ s handling of the economy at 54 % , a record high in that survey .
Overall approval falling : The Quinnipiac poll finds that 36 % of voters approve of Trump ’ s overall job performance , a six-point drop since last month , while 60 % disapprove .
Trump ’ s net approval in the poll is his worst since August 2017 .
@ @ @ @ @ @ @ 15-point lead over Trump , 52 % to 37 % , compared to a 49 % -41 % edge last month .
The Wall Street Journal/NBC poll put Trump ’ s overall approval at 42 % , with 56 % disapproving , his worst rating since April 2018 .
The Quinnipiac survey of 1,273 self-identified registered voters was conducted from July 9-13 and has a margin of error of 2.8 percentage points .
The WSJ/NBC poll of 900 registered voters was conducted July 9–12 and has a margin of error of 3.27 points @

Approval of President Trump’s handling of the coronavirus pandemic has fallen to its lowest level since March, according to a new Quinnipiac University poll. A sizeable majority of registered voters, 62%, say the president is hurting efforts to combat the virus, the poll finds. Just 31% say that Trump is helping in the fight against the virus, and 35% approve of the way he is handling the response to the pandemic.
Two-thirds of voters, 67%, say they do not trust the information the president is providing about the coronavirus.
A new Wall Street Journal/NBC News poll similarly finds that 37% of voters approve of Trump’s handling of the coronavirus outbreak and 59% disapprove.
On the economy: Approval of Trump’s handling of the economy has also slipped to 44%, down from 52% in June. "Trump's strongest card, the economy, shredded by a killer virus, may have left the president with no go-to issue or trait to stave off defeat... not leadership, not empathy, not foreign policy, and certainly not his handling of COVID-19," said Quinnipiac University Polling Analyst Tim Malloy. The Wall Street Journal/NBC News poll, by contrast, finds approval of Trump’s handling of the economy at 54%, a record high in that survey.
Overall approval falling: The Quinnipiac poll finds that 36% of voters approve of Trump’s overall job performance, a six-point drop since last month, while 60% disapprove. Trump’s net approval in the poll is his worst since August 2017. The poll has Joe Biden with a 15-point lead over Trump, 52% to 37%, compared to a 49%-41% edge last month. The Wall Street Journal/NBC poll put Trump’s overall approval at 42%, with 56% disapproving, his worst rating since April 2018.
The Quinnipiac survey of 1,273 self-identified registered voters was conducted from July 9-13 and has a margin of error of 2.8 percentage points. The WSJ/NBC poll of 900 registered voters was conducted July 9–12 and has a margin of error of 3.27 points.


thefiscaltimes--2020-07-14--The Unemployment Emergency Ahead

The Unemployment Emergency Ahead

With the $ 600-a-week federal boost to unemployment benefits set to expire later this month , potentially leaving millions of Americans facing a financial crunch , some senior Trump administration officials have begun signaling that they ’ d go along with a modified extension of the payments .
The Washington Post reports : “ One potential compromise discussed by Republican lawmakers would involve cutting the unemployment benefit from $ 600 per week to between $ 200 and $ 400 per week and making up at least part of the difference by sending another round of $ 1,200 stimulus payments.
” @ @ @ @ @ @ @ Post that the administration opposes continuing the current $ 600 weekly increase and argued , as administration officials have for months , that the extra benefit gives workers no incentive to return to their jobs .
But he did not rule out a more limited extension .
Treasury Secretary Steven Mnuchin said last week that any extension of enhanced benefits would ensure that unemployed workers get “ no more than 100 % ” of what they would have earned at their job .
Time is running short : The Senate is set to @ @ @ @ @ @ @ just five days before the enhanced benefit will expire in every state but New York , where it will end a day later .
But the GOP has yet to reach consensus on the issue , and the Post says serious bipartisan talks haven ’ t begun .
Republicans are reportedly crafting a coronavirus relief package with the White House that is expected to cost about $ 1 trillion , or about a third the size of the HEROES Act legislation passed by the House in May , which would extend the $ @ @ @ @ @ @ @ .
Republicans dismissed the Democratic legislation as an expensive liberal wish list .
The GOP package , which reportedly would include financial incentives for schools to reopen , is expected to be unveiled as soon as next week .
Doubts about a deal : That leaves little time — and lots of issues to be resolved — before the House is set to leave for its August recess .
“ They don ’ t have time , which is what is very scary about all this , ” Bill Hoagland , senior vice @ @ @ @ @ @ @ former Republican staff director for the Senate Budget Committee , told the Post .
“ It ’ s very irresponsible.
” House Speaker Nancy Pelosi told CNN Tuesday that she ’ s willing to put off or cancel the scheduled August recess in order to reach a deal on the next coronavirus relief package , including unemployment benefits .
In the meantime , millions of Americans would face serious financial hardship once the benefit expires .
More than 30 million Americans would see an income cut of between 50 % and 75 % @ @ @ @ @ @ @ Ernie Tedeschi , who worked in the Treasury Department during the Obama administration , projects .
Bottom of Form “ We ’ d basically have to choose between paying bills and eating , ” one woman who was furloughed from her job at the end of April told the Post .
“ I honestly don ’ t know what I would do.
” Read more at The Washington Post .

With the $600-a-week federal boost to unemployment benefits set to expire later this month, potentially leaving millions of Americans facing a financial crunch, some senior Trump administration officials have begun signaling that they’d go along with a modified extension of the payments.
The Washington Post reports: “One potential compromise discussed by Republican lawmakers would involve cutting the unemployment benefit from $600 per week to between $200 and $400 per week and making up at least part of the difference by sending another round of $1,200 stimulus payments.”
White House spokesman Judd Deere told the Post that the administration opposes continuing the current $600 weekly increase and argued, as administration officials have for months, that the extra benefit gives workers no incentive to return to their jobs. But he did not rule out a more limited extension. Treasury Secretary Steven Mnuchin said last week that any extension of enhanced benefits would ensure that unemployed workers get “no more than 100%” of what they would have earned at their job.
Time is running short: The Senate is set to return from recess on July 20, just five days before the enhanced benefit will expire in every state but New York, where it will end a day later. But the GOP has yet to reach consensus on the issue, and the Post says serious bipartisan talks haven’t begun.
Republicans are reportedly crafting a coronavirus relief package with the White House that is expected to cost about $1 trillion, or about a third the size of the HEROES Act legislation passed by the House in May, which would extend the $600 weekly unemployment payments for six months. Republicans dismissed the Democratic legislation as an expensive liberal wish list. The GOP package, which reportedly would include financial incentives for schools to reopen, is expected to be unveiled as soon as next week.
Doubts about a deal: That leaves little time — and lots of issues to be resolved — before the House is set to leave for its August recess. “They don’t have time, which is what is very scary about all this,” Bill Hoagland, senior vice president at the Bipartisan Policy Center and former Republican staff director for the Senate Budget Committee, told the Post. “It’s very irresponsible.”
House Speaker Nancy Pelosi told CNN Tuesday that she’s willing to put off or cancel the scheduled August recess in order to reach a deal on the next coronavirus relief package, including unemployment benefits.
In the meantime, millions of Americans would face serious financial hardship once the benefit expires. More than 30 million Americans would see an income cut of between 50% and 75% if the benefits go away, economist Ernie Tedeschi, who worked in the Treasury Department during the Obama administration, projects.
Bottom of Form“We’d basically have to choose between paying bills and eating,” one woman who was furloughed from her job at the end of April told the Post. “I honestly don’t know what I would do.”
Read more at The Washington Post.


thefiscaltimes--2020-07-16--Jobless Claims Top 1 Million for 17th Week in a Row

Another 1.3 million Americans filed initial claims for state unemployment benefits last week , the Labor Department said Thursday .
@ @ @ @ @ 16th straight week , but the size of the decrease fell short of expectations , @ @ @ @ @ than the week before .
It was the 17th straight week in which initial claims @ @ @ @ @ addition to the claims through the state systems , more than 900,000 people applied for @ @ @ @ @ Unemployment Assistance program , which provides assistance to self-employed and gig workers who are usually @ @ @ @ @ In all , about 2.2 million people applied for unemployment benefits in the week ending @ @ @ @ @ data that is not seasonally adjusted , the number is 2.4 million ) .
“ @ @ @ @ @ is stalling -- and that 's a very worrying sign , ” said Heather Long @ @ @ @ @

Another 1.3 million Americans filed initial claims for state unemployment benefits last week, the Labor Department said Thursday. New applications fell for the 16th straight week, but the size of the decrease fell short of expectations, with just 10,000 fewer filings than the week before. It was the 17th straight week in which initial claims exceeded 1 million.
In addition to the claims through the state systems, more than 900,000 people applied for benefits through the federal Pandemic Unemployment Assistance program, which provides assistance to self-employed and gig workers who are usually ineligible for unemployment aid.
In all, about 2.2 million people applied for unemployment benefits in the week ending July 11. (Using data that is not seasonally adjusted, the number is 2.4 million).
“The level of jobless claims is stalling -- and that's a very worrying sign,” said Heather Long of the Washington Post.


thefiscaltimes--2020-07-16--Pelosi Says $1.3 Trillion for Next Coronavirus Relief Bill ‘Not Enough’

House Speaker Nancy Pelosi said Thursday that the next coronavirus relief bill , which is expected to include some kind of extension of the $ 600 per week unemployment supplement , would cost at least $ 1.3 trillion — but that amount is “ not enough.
” In an interview on Bloomberg Television , Pelosi said she was confident Republicans would “ come around ” to make a deal in the coming weeks , with the final package totaling close to the $ 3 trillion proposed by House Democrats .
White House says stimulus package must include payroll tax cut @ @ @ @ @ @ @ may be complicated by White House insistence that any package include a payroll tax cut .
“ As he has done since the beginning of this pandemic , President Trump wants to provide relief to hardworking Americans who have been impacted by this virus and one way of doing that is with a payroll tax holiday , ” White House spokesman Judd Deere said in a statement cited by The Washington Post .
“ He ’ s called on Congress to pass this before and he believes it must be part of any @ @ @ @ @ @ @ key Republicans , have been cool to the idea , which Trump and administration officials have been pushing for months .
A spokesperson for Sen. Chuck Grassley , the Republican chair of Senate Finance Committee , said , “ Chairman Grassley looks forward to working with the Administration and his fellow lawmakers on the next coronavirus bill .
A number of tax relief proposals will be part of the discussion.
” That ’ s not exactly a wholehearted endorsement of a payroll tax cut .
Emergency unemployment aid expires soon : The $ @ @ @ @ @ @ @ — which has helped keep millions of Americans afloat since payments began in April — expires in most states on July 25 , and it looks increasingly likely that Congress will allow the program to lapse or end , even as lawmakers negotiate a potential extension .
The failure to pass an extension before July 25 means there could be a period of at least several weeks with no additional unemployment payments , which could be disastrous financially for the millions of unemployed workers in the U.S. , as well as for the @ @ @ @ @ @ @ more details on how this could play out , see this CNBC piece . )
The Trump administration said earlier this week that it was open to a limited extension at a lower payment level , possibly between $ 200 and $ 400 per week .
Pelosi on Wednesday signaled that she is willing to negotiate with Republicans on the size of the supplemental payment , though any agreement would depend on how much money is provided in the form of direct assistance to individuals as part of the next stimulus package .
@ @ @ @ @ @ @ ) , however , sounded less interest in extending the extra unemployment payments , saying Tuesday that the “ bonus ” had been a “ mistake.
” Many Republicans believe the higher unemployment payments are motivating workers to avoid going back to their jobs , depressing the recovery .
Many Democrats , however , argue that there simply isn ’ t enough work available for the more than 30 million people currently receiving unemployment assistance , and that the supplements are needed to prevent the economy from sliding backward .
Other challenges : @ @ @ @ @ @ @ payment to individuals in the bill , and McConnell has said he ’ s open to the idea , though it ’ s likely that any payments will be more strictly limited by income .
Both leaders also say they want to see aid for schools in the package , and Republicans reportedly are looking at tying aid to schools reopening .
Those and numerous other issues will be difficult to negotiate .
Democrats want to include housing assistance for renters and homeowners , but Republicans are opposed .
Pelosi wants to provide @ @ @ @ @ @ @ 1 trillion — to state and local governments , but McConnell and the White House have resisted the idea , expressing concerns about ‘ bailing out ’ governments that have run large deficits .
Democrats also want more food aid and tougher workplace safety rules , but Republicans have resisted , while maintaining that doctors and businesses need more liability protection from lawsuits over potential coronavirus-related illnesses and deaths .
Negotiations expected to start next week .
Congress returns to town from its Fourth of July break on Monday and negotiations over the @ @ @ @ @ @ @ week .
But it looks like there ’ s a good chance it may be too late to extend the enhanced unemployment payments without disruption .

House Speaker Nancy Pelosi said Thursday that the next coronavirus relief bill, which is expected to include some kind of extension of the $600 per week unemployment supplement, would cost at least $1.3 trillion — but that amount is “not enough.” In an interview on Bloomberg Television, Pelosi said she was confident Republicans would “come around” to make a deal in the coming weeks, with the final package totaling close to the $3 trillion proposed by House Democrats.
White House says stimulus package must include payroll tax cut: The prospects for reaching a deal may be complicated by White House insistence that any package include a payroll tax cut. “As he has done since the beginning of this pandemic, President Trump wants to provide relief to hardworking Americans who have been impacted by this virus and one way of doing that is with a payroll tax holiday,” White House spokesman Judd Deere said in a statement cited by The Washington Post. “He’s called on Congress to pass this before and he believes it must be part of any phase four package.”
Lawmakers, including key Republicans, have been cool to the idea, which Trump and administration officials have been pushing for months. A spokesperson for Sen. Chuck Grassley, the Republican chair of Senate Finance Committee, said, “Chairman Grassley looks forward to working with the Administration and his fellow lawmakers on the next coronavirus bill. A number of tax relief proposals will be part of the discussion.” That’s not exactly a wholehearted endorsement of a payroll tax cut.
Emergency unemployment aid expires soon: The $600 per week boost in unemployment benefits — which has helped keep millions of Americans afloat since payments began in April — expires in most states on July 25, and it looks increasingly likely that Congress will allow the program to lapse or end, even as lawmakers negotiate a potential extension. The failure to pass an extension before July 25 means there could be a period of at least several weeks with no additional unemployment payments, which could be disastrous financially for the millions of unemployed workers in the U.S., as well as for the economy as a whole. (For more details on how this could play out, see this CNBC piece.)
The Trump administration said earlier this week that it was open to a limited extension at a lower payment level, possibly between $200 and $400 per week. Pelosi on Wednesday signaled that she is willing to negotiate with Republicans on the size of the supplemental payment, though any agreement would depend on how much money is provided in the form of direct assistance to individuals as part of the next stimulus package.
Senate Majority Leader Mitch McConnell (R-KY), however, sounded less interest in extending the extra unemployment payments, saying Tuesday that the “bonus” had been a “mistake.” Many Republicans believe the higher unemployment payments are motivating workers to avoid going back to their jobs, depressing the recovery. Many Democrats, however, argue that there simply isn’t enough work available for the more than 30 million people currently receiving unemployment assistance, and that the supplements are needed to prevent the economy from sliding backward.
Other challenges: Pelosi reportedly wants to include another direct payment to individuals in the bill, and McConnell has said he’s open to the idea, though it’s likely that any payments will be more strictly limited by income. Both leaders also say they want to see aid for schools in the package, and Republicans reportedly are looking at tying aid to schools reopening.
Those and numerous other issues will be difficult to negotiate. Democrats want to include housing assistance for renters and homeowners, but Republicans are opposed. Pelosi wants to provide substantial aid — as much as $1 trillion — to state and local governments, but McConnell and the White House have resisted the idea, expressing concerns about ‘bailing out’ governments that have run large deficits. Democrats also want more food aid and tougher workplace safety rules, but Republicans have resisted, while maintaining that doctors and businesses need more liability protection from lawsuits over potential coronavirus-related illnesses and deaths.
Negotiations expected to start next week. Congress returns to town from its Fourth of July break on Monday and negotiations over the relief bill are expected to begin next week. But it looks like there’s a good chance it may be too late to extend the enhanced unemployment payments without disruption.


thefiscaltimes--2020-07-16--FreedomWorks President: ‘No New Spending as Part of Coronavirus Relief Bills’

Adam Brandon , president of FreedomWorks , the conservative and libertarian advocacy group , says that the federal government can ’ t afford to spend any more on coronavirus relief .
In an opinion piece at The Hill , Brandon argues that while another coronavirus aid package may be inevitable , it shouldn ’ t extend the $ 600 in enhanced weekly unemployment benefits set to expire this month .
Economists warn that cutting off those benefits could sharply reduce incomes for some 30 million Americans , which could reverberate across the economy .
A new study released Thursday by @ @ @ @ @ @ @ increased their spending once they began receiving benefits .
`` The fact that spending by benefit recipients rose during the pandemic instead of falling , like in normal times , suggests that the $ 600 supplement has helped households , '' the report says .
But Brandon argues that extending the benefit would hurt businesses : “ Not only would extending these benefits drive up the deficit , which already exceeds $ 2.744 trillion this year and is expected to continue to rise , but it would also deal a serious blow to @ @ @ @ @ @ @ they struggle to pick up the pieces from the economic shutdowns that sent the economy in a tailspin .
“ Paying workers more to stay home than to return to work is a surefire way to cause thousands of small businesses -- a cornerstone of the economy across the country -- to go under.
” What ’ s more , he says , extending the federal unemployment benefit may be “ a stepping stone on the path to universal basic income.
” A better idea , he suggests , would be to cut @ @ @ @ @ @ @ reportedly demanding .
“ Businesses deserve the support they need to safely and responsibly reopen , ” he writes .
“ This starts with no new spending as part of coronavirus relief bills .
”

Adam Brandon, president of FreedomWorks, the conservative and libertarian advocacy group, says that the federal government can’t afford to spend any more on coronavirus relief. In an opinion piece at The Hill, Brandon argues that while another coronavirus aid package may be inevitable, it shouldn’t extend the $600 in enhanced weekly unemployment benefits set to expire this month.
Economists warn that cutting off those benefits could sharply reduce incomes for some 30 million Americans, which could reverberate across the economy. A new study released Thursday by JPMorgan Chase found that unemployed households actually increased their spending once they began receiving benefits. "The fact that spending by benefit recipients rose during the pandemic instead of falling, like in normal times, suggests that the $600 supplement has helped households," the report says.
But Brandon argues that extending the benefit would hurt businesses:
“Not only would extending these benefits drive up the deficit, which already exceeds $2.744 trillion this year and is expected to continue to rise, but it would also deal a serious blow to small businesses who may need workers as they struggle to pick up the pieces from the economic shutdowns that sent the economy in a tailspin.
“Paying workers more to stay home than to return to work is a surefire way to cause thousands of small businesses -- a cornerstone of the economy across the country -- to go under.”
What’s more, he says, extending the federal unemployment benefit may be “a stepping stone on the path to universal basic income.” A better idea, he suggests, would be to cut payroll taxes, as President Trump is reportedly demanding. “Businesses deserve the support they need to safely and responsibly reopen,” he writes. “This starts with no new spending as part of coronavirus relief bills.”