The Republican minority in the U.S. House is proposing a $1,200 bonus to each taxpayer as an incentive to return to work as the coronavirus lockdowns are lifted.
They argue the current $600 per week unemployment bonus, which Democrats want to extend, discourages going back to work.
Many workers are getting more money on unemployment than they were getting at work.
Just the News reports Republican members of the House Ways and Means Committee said the Congressional Budget Office supports their plan.
The CBO said: “The extension of the additional $600 per week would probably reduce employment in the second half of 2020, and it would reduce employment in calendar year 2021. The effects from reduced incentives to work would be larger than the boost to employment from increased overall demand for goods and services.”
The objective is to assist those who lost work because of the government lockdowns while not creating a disincentive to return to work.
”Rather than continue subsidizing unemployment where it is no longer necessary, these funds can be put to more appropriate use in encouraging workers to return to work,” the Republican members said.
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The lead Republican on the House Ways and Means Committee, Rep. Kevin Brady of Texas, said that without without changes “more businesses will fail.”
Brady said the benefits in the $2.2 trillion CARES Act need modification so that they don’t “continue to act as a barrier to getting people back to work.”
Democratic Oregon Sen. Ron Wyden, the ranking member of the Senate Finance Committee, said the bonus is worth considering, but he doesn’t want it to replace an extension of unemployment benefits.