Several Democrats made a push to guarantee paychecks to every person in the United States in a Tuesday opinion piece in the Washington Post.
The editorial comes in the wake of a grim numbers report last week, showing the country reaching a nearly 15% unemployment rate, the highest since the Great Depression. Among those who authored the article, titled “Mass unemployment is a policy choice. We must choose differently,” include Reps. Adam Schiff of California, Pramila Jayapal of Washington, Haley Stevens of Michigan, and Sean Casten of Illinois.
The lawmakers laud the moves made to help workers in response to the coronavirus pandemic so far, but they say short-term cash flow aid (as seen in the Paycheck Protection Program) doesn’t go far enough for most U.S. workers. Instead, they are sponsoring the Paycheck Guarantee Act, which would help struggling companies continue to pay workers even while they are closed during the pandemic.
“(The Paycheck Guarantee Act) ends mass layoffs, keeps workers in their jobs and connected to their health care and prevents employers from being forced to close permanently,” the article reads.
Other countries, such as Germany, Denmark, and the United Kingdom, have implemented similar measures to reduce unemployment in their countries, reported Vox.
In March, Denmark’s government vowed to cover 75% of workers’ salaries that companies pay out up to a certain amount.
The lawmakers write the proposed U.S. version would have employers file a sworn statement with the IRS on the amount of lost revenue because of COVID-19. The IRS would then use 2019 tax filings to calculate a grant totaling the percentage of revenue loss multiplied by payroll and workers’ benefits, with a salary cap of $90,000. Businesses would also receive an additional 25% to cover operating costs and rent to prevent permanent closures.
The bill would also let employers rehire workers laid off or furloughed after March 1.
The lawmakers say it’s vital to keep people at home during the pandemic instead of quickly opening up businesses, leading to more potential cases of COVID-19. They ask the Paycheck Guarantee Program to be included in the next relief package.
“Our goal must be nothing less than stopping the steep rise in unemployment and protecting the paychecks of all workers; the alternative would risk not only our economy but also our future, creating enormous devastation for workers and businesses alike and substantially slowing our recovery and competitiveness,” they say.
