White House economic adviser Larry Kudlow shared new details about the phase four stimulus package with FOX Business today. He “conclusively” confirmed that a phase four stimulus package is coming.
This appearance comes on the heels of his statement last week that the next round of stimulus checks might be less than $1,200 and might target low-income and unemployed Americans. Today, he didn’t specify any more about income requirements.
What might the next stimulus include?
While formal talks have not yet begun, Kudlow outlined a “grab bag” of what the next stimulus package might include:
· Payroll tax holiday of a 6.5 percent increase to after-tax wages for people going back to work or working
· Unemployment reforms
· Return-to-work type bonuses of a modest nature
· Extensions to Paycheck Protection Program
· Capital gains tax holiday
When pressed about whether another stimulus bill is definitely coming, Kudlow confirmed that it is. “I’ll say that conclusively,” Kudlow said. “As you read the reports and talk to people on both sides of the aisle on the Hill, it is increasingly clear that there will be an additional package.”
“We’ll try to make it targeted,” Kudlow said. “We’ll try to incentivize not just work, but investments. We want a pro-growth package that will not only get us through this year… we want to go forward into 2021 and make it a big bang year.”
“I think it’s safe to say at this point all sides agree there will be a package,” he added.
Schools must reopen to keep economy moving forward
To get the economy going, it’s important to get students back to school, Kudlow said.
“We all agree kids need to be in school,” he said. “Kids staying home do a lot of harm and damage to the kids. Interpersonal teaching is the best way to do it. You don’t want to miss another school year or a school year, which would set them back in terms of their actual learning process.” Working parents and single moms, in particular, would have a difficult time if schools do not reopen, he added.
There are four guidelines that must be met for schools to open successfully, according to Kudlow. This includes:
· Masking
· Distancing
· Personal hygiene
· Testing
President Trump is open to considering additional funding to help on this front, Kudlow shared. A lot remains in question, from spacing of desks in classrooms to how many hours each school day will run. However, he has confidence that the schools will figure this out.
“If we don’t reopen the schools K-12 especially, but I would also add some of these fancy colleges that ‘ought to stay open, that would be a setback to true economic recovery,” Kudlow said.
What the increase in coronavirus cases means for economic recovery
Despite the surge in coronavirus cases, Kudlow believes the V-shaped recovery is still intact—though he admits the situation is worrisome.
“Job postings are going up—that’s a very promising sign,” Kudlow said. There’s also a housing boom, a retail boom and a consumer confidence boom. The employment numbers have gone up. Initial jobless claims have been coming down for 14 consecutive weeks. Small businesses are opening at 80 percent. New business applications are also strong, he said.
“I don’t like to see the cases,” Kudlow said. “On the other hand, we know what to do. We know how to flatten these curves. I do believe they are going to be temporary.”
To be sure, as coronavirus cases in the U.S. continue to climb, the data is looking more and more concerning. Coronavirus cases are rising in 35 states. The U.S. has now hit more than 3.3 million coronavirus cases since the pandemic started, which means that nearly one in every 100 Americans has tested positive for Covid-19, according to John Hopkins University.
This article originally appeared on Forbes.
