July 16, 2020
AAF Resources for the Next Coronavirus Aid Package
As Congress considers the next coronavirus aid package, the following resources from the American Action Forum assess the impact of past policies and propose a new policy to aid the recovery.
- Parsing the Reasons for Layoffs in State and Local Governments: AAF’s Labor Market Policy Data Analyst Isabel Soto writes that work incentives created by the federal unemployment supplement are likely contributing to states and local governments laying off workers.
- Unemployment Benefits and Returning to Work: Soto finds that the maximum unemployment benefit is now greater than the median wage in the majority of states.
- State Unemployment Benefits and Returning to Work: Soto finds that 63 percent of all workers make more on maximum unemployment benefits than when working, and reducing the federal supplement to $100 still leaves 25 percent of workers making more on maximum unemployment.
- The AAF Exchange — Labor Market Intervention & Unemployment Insurance: On AAF’s podcast, Soto discusses federal and state labor market interventions in response to COVID-19, including the unemployment insurance supplement in the CARES Act and its implications for the economic recovery.
- Safely Opening the Economy: AAF President Douglas Holtz-Eakin sketches a tax-credit proposal that would encourage businesses to take the steps necessary to open safely, allowing them to operate in the presence of the virus.
- Targeted Pro-Growth, Public-Health Tax Policy: To support both economic growth and the public health fight against COVID-19, Congress could improve the incentives for innovative infectious disease drug development, Holtz-Eakin argues.