Tax provisions in federal stimulus package include individual rebates and employer payroll tax credits and deferrals
Altogether, the tax provisions in the federal stimulus package, which was passed by Congress today, are estimated by the Joint Committee on Taxation to reduce federal revenues by $605.5 billion through fiscal year 2025. Of that reduction, $292.4 billion is from the bill’s rebate for individuals. The rebate will be $1,200 for singles and $2,400 […]
More on initial claims
Yesterday I posted a chart showing, by sector, the number of claims for unemployment insurance filed between March 1 and March 21 divided by employment in the month of February. I will call this ratio the layoff rate. The chart below is a scatter plot with sectors’ layoff rates measured along the vertical axis and […]
Small business loans in the federal aid bill
Under the federal coronavirus aid bill, as passed by Congress, the Small Business Administration (SBA) would guarantee “paycheck protection loans” for businesses with fewer than 500 employees, sole proprietors, independent contractors, and the self-employed. The loans could be used for payroll costs (except the compensation of individual employees over $100,000 annually), health benefits, salaries, mortgage […]
Federal stimulus package would increase unemployment insurance benefits
As Kriss noted yesterday, initial claims for unemployment insurance (UI) during the week ending March 21 were up significantly, in both Washington and the U.S. as a whole. (Kriss also looks at claims by industry here.) And, as Rachel La Corte of the Associated Press reports, “Based on the number of claims that have come […]
26th of March 2020
With construction deemed largely non-essential, there will be a hit to state revenues
When Gov. Inslee ordered Washington residents to stay home beginning March 25, he exempted essential businesses. The Puget Sound Business Journal (PSBJ) reported that the list of essential businesses left the construction industry unsure as to whether it is included or not. Yesterday, Gov. Inslee clarified: “In general, commercial and residential construction is not authorized.” […]
Initial claims by industry
Here are two charts. The first shows initial claims for unemployment insurance in Washington during the first three weeks of March by industry as a proportion of the industry’s employment in February: The second chart shows each industry’s claims during the first three weeks of March as a share of total claims over the period:
Initial Claims for Unemployment Insurance
This morning the state Employment Security Department reported that it received 133,464 new claims for unemployment insurance during the March 15-21 week. This is an increase of 119,310 over the 14,154 claims filed during the preceding week. The four-week moving average of claims is 39,963, up from 7,974 for the preceding week. Here is a […]
Washington’s state and local governments could get about $3 billion under federal stimulus package
Yesterday the U.S. Senate passed the third coronavirus stimulus package, via H.R. 748 (the final text is here). The U.S. House is expected to act on the bill tomorrow. As passed by the Senate, it includes $150.0 billion for a relief fund for state, local, and tribal governments (Sec. 5001). (This is the amount that […]
24th of March 2020
National groups call for aid for state governments
As Congress continues to debate further response to COVID-19, some national groups are calling for aid for state governments. The National Governors Association (NGA) has asked Congress for $150 billion “in immediate direct aid to the states, with maximum flexibility for governors’ COVID19 efforts.” NGA also thinks the recently adopted temporary 6.2 percentage point increase […]
Washington cities may do better than other U.S. cities in a COVID-19-related recession
The Brookings Institution took a look at which metropolitan areas in the U.S. are most exposed to the potential recession. They consider “industries vulnerable to disruption by virus-related demand declines, shutdowns, and layoffs.” These industries are: Mining/oil and gas, Transportation, Employment services, Travel arrangements, and Leisure and hospitality. Nationally, 24.2 million people work in these […]