2020-06-10
Category:
Author:
Rob

U.S President Donald Trump stated that he had plans of requesting Congress to pass more economic stimulus that would include reduced taxation of pays, amidst reports that show there had been an unexpected improvement as far as unemployment in the U.S is concerned. The Democrats had passed an additional 3.5 trillion stimulus earlier that is aimed at helping states and hospitals that have been overwhelmed by the Coronavirus; however, Republicans are of a contrary opinion and have stalled the same. The GOP is of the idea that any more funding should be directed towards salvaging the economy and not the kind of expenses proposed by the democrats. The expected expenditure is expected to reach a trillion dollars, which Mitch McConnell, the Majority Leader, supports. 

The Bureau of Labor Statistics' report showed that there had been 2.5 million jobs created, reducing unemployment by 13.3%. On the contrary, another survey depicted that the expected jobs to be lost would stretch by 7.5 million, increasing unemployment to 19%. The democrats and republicans are both reluctant over the pay cut tax relief since the same would only benefit those currently employed. However, Trump feels that the relief would help organizations hire more employees since they are charged less on tax payments to the government. Economists, too, claim that the payroll tax cut would neither be enough to boost the consumption expenses nor encourage more hiring.

Richard Neal, the chairman of the House Ways and Means Committee, adamantly stated that despite the positive report, a lot is to be done in terms of unemployment insurance, which expires end of July. The move is meant to ensure that though the virus remains a menace, those who are out of jobs continue surviving, and the economy is sustained at the same time. Michael Zona, a spokesman for Senate Finance Chairman Chuck Grassley, claimed that the report shows that there isn't a need to rush the decision of adding more funds entering into more debts that might otherwise be avoidable if looked at more carefully, to cushion both the employment sector and the economy. 

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