A “Return to Work Bonus?” Senior House Ways & Means Committee Republican Kevin Brady has introduced a bill to establish a lump sum $1,200 payment to people who return to work after receiving unemployment benefits. The payment would be available through July 31. A $600 weekly federal unemployment benefit, enacted under the last coronavirus relieve package, is due to expire on July 31, though House Democrats want to extend it.
Is it Infrastructure Week? The House Transportation and Infrastructure Committee Democrats plan to release a highway bill today. The measure will be similar to a framework they released in January, which includes $319 billion for highways and bridges over five-years, an additional $105 billion for transit, $55 billion for rail, and $10 billion for safety. How would they pay for it? Perhaps an increase in the current federal gas tax or a tax based on miles traveled. Or something else. Stay tuned.
More digital saber-rattling. The Trump Administration’s trade representative announced a series of investigations into countries around the world that have imposed or are considering digital taxes that may unfairly target US firms. Such investigations often are precursors to new tariffs.
Fewer people are driving in Oregon. And roads could suffer. Gas tax revenue may decline by as much as $215 million between March 2020 and March 2021 given stay-at-home orders and people’s unwillingness to travel. Traffic in the state fell about 50 percent in early April and is currently down 20 percent even though gasoline prices are at their lowest price in 11 years. Gas taxes are a major funding source for road construction and maintenance in the state and its localities. Said one county commissioner, the state “might have to go back to fixing holes instead of paving roads.”
Burlington, Vermont: City Council postpones a vote on new taxes on the wealthy. The council was to vote on changing the city’s charter to increase taxes on wealthy and high-income residents. The tax would raise income taxes on residents who earn more than $125,000 annually and impose a luxury sales tax on houses and businesses worth at least $500,000. Some council Democrats agreed with critics who said the taxes would drive people and businesses out of Burlington so they put the vote off for at least two weeks to reconsider the plan.
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