The Senate recently took action on an enormous stimulus plan to help Americans with expenses due to the Coronavirus.
They calculated an amount based on adjusted gross income for 2018. This is an unnecessary exercise to obtain a questionable result.
During the negotiations, Democrats seem more concerned with attaching ideological strings and bashing corporations. Nancy Pelosi’s initial House Bill was so rushed it needed 100 pages of corrections and arguably would accelerate small business layoffs. The Speaker then introduced a 1,400-page bill, littered with partisan demands unrelated to COVID-19.
The most basic objection to the Senate bill is why base everything on 2018 AGI? Two years ago, life was different. You may have sold a business, bought a house or married since.
The people who most need help lack income because their jobs disappeared.
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A liquidity injection is necessary to revive businesses and blunt the economic impact on households. Folks require money for groceries, rent, and maybe some proprietors can pay employees instead of shutting down. A teacher or accountant still being paid every fortnight does not need money as urgently.
Senators Marco Rubio and Ben Sasse recently offered responsible solutions.
Rubio wants to use a network of lenders for an existing program to help small businesses. The Florida Republican is sponsoring legislation to match President Trump’s call for $50 billion from the Small Business Administration.
Sasse gave a stellar speech on the senate floor where he advised giving governors the lead in making sure the money gets where it’s most needed. He claims, “the 50 laboratories of democracy are going to be more effective than a rifle shot approach from Washington.”
Sasse is correct; governors know best what their workforce needs and how to target money.
Minnesota is not California, after all. Flatten the curve, not the economy.
AJ Kaufman
Little Falls
