The executive order and the memorandum signed by Donald Trump are receiving a negative backlash as many feel they are not good enough to help the millions of Americans who are struggling between the epidemic.
Democratic politicians are attacking the lack of funding for extended testing, which medical experts believe are important to slow the spread of the deadly virus. But for millions of Americans struggling to pay their rent on time, the lack of incentive checks is a visceral punch. Congress has been negotiating an incentive relief bill for the past several weeks, and both sides have acknowledged that a second round of the $ 1,200 incentive check is required.
The latest figures released by the Bureau of Labor Statistics show that more than 16 million Americans are still unemployed. Millions of workers in the hospitality, restaurant and travel industries have no idea when they will be able to return to work as the epidemic has crushed their industries. More than 30 million people are currently receiving unemployment benefits.
One of Trump’s measures calls for reducing the $ 600 unemployment benefit to $ 400 a week. Additional federal aid is given in addition to state aid, which averages $ 330 per week. Extended federal unemployment insurance benefits provided by the CARES Act last month.
The catch with the newly expanded unemployment benefits is that Trump is asking states to pay 25%. Many states are short on funds due to the ongoing battle with coronoviruses, meaning that $ 400 a week profit is not guaranteed. One of the major sticking points during the talks between Democrats and White House negotiators was Democrats’ emphasis on increasing funding for states. Trump’s new measure advances his arguments stating that additional funding is needed.
Others are aiming for payroll tax cuts, which the Center has described as a poor incentive in budget and policy priorities. According to the authors of the Center’s report, “Relief measures are most effective as economic incentives if they provide resources quickly to the people and businesses who need it most and therefore any additional dollars they receive Is most likely to be spent instead of saving, which accumulates there. Reducing the depth and length of consumer demand and recession. But payroll tax cuts score poorly on these fronts. “
They further argue that cutting the employee share of payroll taxes helps high-income people the most, who are less likely to spend savings. The report’s author states, “Reducing the weaknesses of this approach, [a payroll tax cut] There is less for low-income people and less for those who lose jobs. “
The most struggling Americans are those who have lost their jobs and are unable to work. With their savings plummeting and bills piling up, an economic shock can have lasting effects that can destabilize even those who thought they were prepared. Unfortunately, the payroll tax deduction does nothing for those who have lost their jobs. According to the report, a better use of the funds will help states to meet their massive revenue shortages and avoid deep cuts in state services (which will deepen and prolong the recession), nutritional support and expanded unemployment Will strengthen benefits, and measures to maintain and enhance health coverage and care, in particular through Medicaid. “
Payroll tax revenue also helps social security and medical funds; Politicians of both parties agree that this tax cut is retaliatory. Both the Democrat-sponsored HEROES Act and the GOP-sponsored HEALS Act waive a payroll tax deduction.
One aspect of the executive measure that has been outlined by both parties is the continuation of student loan payments until the end of the year.
Executive order on aviation falls short
The Executive Order for Removal Relief states that “In consultation with the Secretary of the Treasury, the Director of FHFA will review all existing authorizations and resources that are used to evict tenants and homeowners arising from the hardships caused by COVID-19.” And can be done to prevent foreclosure. . “
The order itself fails to extend the eviction postponement, does not provide additional funds to help struggling renters and homeowners, and puts millions of renters at risk for eviction in the coming months. In short, the order passes the buck to the other authorities to ultimately decide whether another adjournment is necessary.
The executive order highlights that “expulsions adversely affect minorities, particularly African Americans and Latino.” These are the communities most affected by the epidemic.
In July, a study found that 1-in-3 renters were unable to pay their rent on time. Before extended unemployment benefits ran out. Dani Johnson is a 30-something New Yorker who was laid off from his job in May. Now he is faced with the possibility of paying his rent or buying groceries after reducing his savings on overdue bills while out of work.
Being evicted would mean that she would lose all her belongings and belongings and would also find it difficult to find work. The benefits of keeping Americans in their homes during a public health crisis are obvious, but the economic effects of eviction are devastating. Asked if another $ 1,200 incentive check would help, she said, “It will buy me another month before I’m okay where I am today until I get a job.”
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Update: Trump signs executive orders affecting unemployment benefits, evidence and student loans
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Can the GOP incentive proposal – the HEALS Act – lead to greater income inequality?
GOP Stimulus Plan: $ 1,200 check, deductions for unemployed and zero emission relief for renters
Update: Massive evidence set to begin – communities of color to be the most hit