Lawmakers in D.C. are considering their options for potential economic stimulus if coronavirus fears lead to a prolonged economic slowdown.
President Trump has floated the idea of a substantial payroll tax cut. Senator Bill Cassidy says they haven’t seen any firm plans for it yet, and he’s unsure about the idea.
“Keep in mind payroll taxes are about 34 percent of federal revenue and that would be a pretty major hit, and if you’ve lost your job you aren’t paying payroll taxes anyways,” says Cassidy.
Cassidy says the best way the country could avoid an economic slowdown would be if Congress came together to pass a robust infrastructure package.
“We got to not just support people when they lose jobs but to create jobs. If you create construction jobs for working families that create manufacturing jobs for making the product they use for construction, which creates service jobs,” says Cassidy.
There are growing fears the lack of sick days and hourly pay of the service industry could result in sick workers spreading the virus because they can’t afford to miss work. Cassidy says that’s a real concern, but getting sick is only one possible threat to working families.
“They don’t even have to be sick if the child’s school is closed, what do you do? Because the child’s parent may have to stay home with the young child,” says Cassidy.
