Following is a statement by Amy Hanauer, executive director of the Institute on Taxation and Economic Policy, regarding the Senate bill on small business relief.
“State budgets have already taken an enormous hit due to the necessary halting of economic activity to curb the COVID-19 public health crisis. The initial $150 billion in the CARES Act will help states, but it’s simply not enough to address the enormity of this economic crisis.
“Congress must provide at least $500 billion in state and local fiscal relief, and it should have done so in this latest relief package. With tax revenues plummeting amid the need for critical investments, states are faced with difficult budgetary decisions. Nine in 10 cities predict budget shortfalls, and the majority anticipate furloughs or layoffs. Without federal help to mitigate this staggering economic decline, states and localities will have to raise historic levels of new revenue to avoid dramatic cuts in programs and services. Budget cuts would diminish state and local governments’ ability to address the human needs they face now and after the COVID-19 crisis. If we want our communities to recover, our children to get the education services they need, and our systems to be better equipped for future threats, we need a much more robust response from federal lawmakers.”