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NEW: Republicans& #39; $1T stimulus is being held up over competing ideas for replacing unemployment insurance, GOP officials tell me & @ericawerner
Tl;dr -- Some in GOP want complex "wage replacement" scheme -- others warn states cannot pull this off https://www.washingtonpost.com/business/2020/07/24/unemployment-benefits-congress-coronavirus/">https://www.washingtonpost.com/business/...
Tl;dr -- Some in GOP want complex "wage replacement" scheme -- others warn states cannot pull this off https://www.washingtonpost.com/business/2020/07/24/unemployment-benefits-congress-coronavirus/">https://www.washingtonpost.com/business/...
To sum up the split:
GOP plan 1: Cut $600/week benefit to $200/week; keep $200/week likely through 2020
GOP plan 2: Cut $600/week to $200/week for several weeks - then replace bonus w/ individualized "wage replacement" based on 70% of prior income https://www.washingtonpost.com/business/2020/07/24/unemployment-benefits-congress-coronavirus/">https://www.washingtonpost.com/business/...
GOP plan 1: Cut $600/week benefit to $200/week; keep $200/week likely through 2020
GOP plan 2: Cut $600/week to $200/week for several weeks - then replace bonus w/ individualized "wage replacement" based on 70% of prior income https://www.washingtonpost.com/business/2020/07/24/unemployment-benefits-congress-coronavirus/">https://www.washingtonpost.com/business/...
Plan 1:
GOP says they want "70 percent replacement" -- ie, workers get from UI 70% of what they had been earning
Currently, states provide ~45% of prior income. W/ a federal bonus of ~$200/week -- way down from current $600 -- UI would replace ~70% on average for typical worker
GOP says they want "70 percent replacement" -- ie, workers get from UI 70% of what they had been earning
Currently, states provide ~45% of prior income. W/ a federal bonus of ~$200/week -- way down from current $600 -- UI would replace ~70% on average for typical worker
Some in GOP dont like Plan 1
The issue: Flat $200/week federal bonus doenst reflect differences in prior income. Ppl could still earn more on UI than they had been
Where Plan 2 emerges
Plan 2: Have feds kick in 50% of the ~45% kicked in by state -- gets you to ~70%, targeted
The issue: Flat $200/week federal bonus doenst reflect differences in prior income. Ppl could still earn more on UI than they had been
Where Plan 2 emerges
Plan 2: Have feds kick in 50% of the ~45% kicked in by state -- gets you to ~70%, targeted
Big potential problems here
Most significant: States have had *enormous* difficulty w/ simple flat $600 bonus from feds
Sen. Wyden says Trump& #39;s labor secretary has said it can& #39;t be done
Think states are struggling to disburse UI benefits now?
Most significant: States have had *enormous* difficulty w/ simple flat $600 bonus from feds
Sen. Wyden says Trump& #39;s labor secretary has said it can& #39;t be done
Think states are struggling to disburse UI benefits now?
Economists, Dems say cutting the benefit from $600 to $200 would spell disaster for +20 million ppl on UI & the broader economy
@ernietedeschi warns the attempt to target at 70% could exacerbate the situation as already overwhlemed state UI offices struggle to make the change
@ernietedeschi warns the attempt to target at 70% could exacerbate the situation as already overwhlemed state UI offices struggle to make the change
