When times are tough, decisions get that much tougher. And a mistake right now might mean we are put down a path from which we cannot recover. Those are the stakes at play when we talk about the possibility of a fourth federal COVID bill. We should pause and think about real solutions instead of repeating past mistakes. So long as a fourth federal COVID bill looms over us, financial peril looms as well.
Right now, we do not have many answers at the heart of the COVID-19 pandemic. Wear your mask, practice social distancing, practice good hygiene: These are all very basic steps. But they are not answers — they are safeguards.
Without real answers, big ticket spending bills like the kind we have seen three times already from the federal government will do their best to masquerade as an answer. But the jury is certainly still out on this one. How will the bill be different than the federal government’s past attempts? We do not know. Spending more money just to spend more money gives politicians, not the American people, a win.
We need to find real solutions about what to do next. We all agree that we need to reopen society. We are social, collaborative, and loving individuals. We simply cannot do any of those things on our own. But how we reopen society — the time, place, and manner — is up for debate.
And it should be. Rigorous discussion and open dialogue from America’s elected representatives are what the American people deserve right now. The search for agreement or compromise to navigate the current storm should be top of mind for every elected official. Far too often, politicians rely on two-minute talking point recitations — with no desire to listen or to build.
We should also be careful about what a fourth federal spending bill might do to our entire system of American government. We have checks and balances, separations of powers, and an important distinction between state governments and the federal government.
The response to COVID-19 has followed the American system: it has been locally executed, state managed, and federally supported. But federal politicians have begun politicizing the money in these bills. Some have even called for COVID relief money to be pulled back from states the politician does not like.
This completely goes against our American system of decentralized government. Luckily, there is a coalition of state leaders who share a different perspective.
Over 200 state legislators and leaders have signed a letter from my organization, the American Legislative Exchange Council, saying no to a federal bailout of the states. They know taking money from the federal government always comes with strings attached. States are left footing the bill for ongoing programs as a part of the funding deal. In the long run, taking federal money hurts the state more than the funding helps.
Most importantly, there are solutions we can agree on right now to respond to COVID-19. Because of the virus, we have already all agreed that occupational licenses are too stringent and that we need to offer more educational choices: maybe with things such as an education savings account, so students and families, not zip codes, are in charge.
We should similarly agree to advance a payroll tax holiday. This stimulates the economy by letting more people keep more of their money. It also removes a burden from something that largely hurts small businesses and main street. This is a win-win, and something the American people need desperately.
This move puts more money into the pockets of those who are still working. And it does so simply: people just get to keep more of the money they earned. There are no secret earmarks, no pork hidden away, and no corporate welfare.
Now is the time to remember to stay calm, to work together, and to look for real solutions. Do not jump at a flashy bill with a clever acronym and think your problems are solved. Similarly, do not think simply throwing money at the states will solve our problems either. Support policy solutions that collaborate and innovate, instead of closing yourself off to someone you think will not agree. Support things everyone can agree on, such as a payroll tax holiday to let people keep more of their hard-earned money.
Lisa B. Nelson is the chief executive officer of the American Legislative Exchange Council, which advances individual liberty and free enterprise in the states. Follow her on twitter @LisaBNelson.
