Hawley's proposal would help businesses rehire workers

U.S. Sen. Josh Hawley says we can either continue funding unemployment benefits during the coronavirus pandemic to the tune of hundreds of billions of dollars a month or we can take a different approach, one that protects workers and provides employers with the talent they need as America's economy begins to reopen.

In a phone interview with me Friday morning, Hawley (R-Mo.) pitched his proposal that would fund 80% of an employer's payroll based on the median wage. This would be done through a refundable payroll tax rebate.

"I think the most important thing we can do is get this economy reopened as soon as possible and get people their jobs back," said Hawley, who was appointed to President Donald Trump's task force on reopening the economy. "Congress needs to act immediately to rehire every worker who has been laid off due to the coronavirus emergency and to support every American job, to protect every American job for the duration of the emergency."

Hawley pointed to the 22 million people unemployed due to the COVID-19 pandemic, noting that if people do not have their jobs back "we're not going to have an economy to reopen."

According to the senator's three-page plan, businesses that rehire employees in April or May -- employees who were laid off in March in April -- would receive "bonus credit amounts per rehired employee to assist them with cash flow."

Additionally, the plan calls for "a substantial investment tax credit" once the economy reopens for employers who retain their payroll.

"What I would say is let's cover 80% of every employer's payroll, up to the median wage," Hawley said. "Let's protect every single job, and let's incentivize businesses to rehire the people who they've laid off."

The senator said he spoke with multiple businesspeople Friday who told him about the "agonizing decisions" they're dealing with in laying off workers.

Additionally, Hawley said it's vital that Congress act now to renew the forgivable Small Business Administration loans which were exhausted as of this week.

"The Democrats are currently not allowing that to pass," he said. "They're not allowing it to come up for a vote. I have no idea why in the world in the middle of the greatest economy crisis since the Great Depression that they think it is a good idea for small businesses to fail. It is utterly beyond me. I can only hope that they decide to stop holding small businesses and all their workers hostage in the next few days."

As for Hawley's Phase 4 Relief Plan, he's spoken with White House officials and members of both parties. Hawley believes there is bipartisan support.

"I think people are beginning to realize the severity of the crisis that we're facing here," he said. "If they come to Missouri and walk through our main streets they'd understand it immediately. You see the businesses closed. You see the lights off. You see the front windows shuttered up. And you understand, this is a crisis. It's a health crisis, but it's also a jobs crisis."

Hawley's plan has yet to be scored for its fiscal impact. While he said it's important to support workers who have lost their jobs with unemployment benefits, for jobs that will come back he would rather see the federal government spend money on the front end to get workers back on the job.

"If government is going to shut down the jobs, government should protect the jobs for Missouri workers and American workers. And that's the heart of my plan."

Hawley is philosophically right. Supporting workers has to be a top priority in reopening the American economy. As it becomes safe to do so, it's far better to have employees working -- with government funding the rehires -- as opposed to relying exclusively on unemployment benefits.

The senator's plan should get serious consideration and legislation should be scored to better understand the fiscal note.

Ultimately, however, relying on unemployment benefits is not a long-term solution. Reopening the economy will not be like flipping a switch. It will be gradual. Finding solutions to keep workers employed -- while helping businesses keep the light on -- should be a priority as we dig out of the financial mess brought on by the pandemic.

Lucas Presson is assistant publisher of the Southeast Missourian.