Political chess game of Covid relief continues.

TRUMP MAKES A MOVE, NOW DEMS NEXT

PROBABLY NOT LAWFUL, BUT WHO WANTS TO SUE TO DENY BENEFITS?

The political maneuvering over a fourth round of Covid relief intensifies with Trump extending some benefits by executive order. The democrats have been advocating a huge 4th round even before the ink was dry on round 3. They want a package of over $3 Trillion, near the annual budget of the Federal government. It has always been unlikely that they will ever get that much, especially when much of the spending is not directly related to the unemployed or those damaged by the shut down.

The order extends suspension of payment on student loans, since most of this is now owed to the federal government it is unlikely to be challenged.

Extending unemployment benefits of $400 per week, still a large incentive not to go back to work. The fly in this ointment is the states will need to contribute $100.  But, if they don't they may not get the other $300. More chess for sure.

Suspension of the pay-roll tax for the rest of the year. These are federal taxes and in an emergency maybe this can fly. It applies to wages under $100,000. This will be a huge pay increase for those that are working. It will be some incentive to be back at work. It will also provide direct economic stimulus without any paper work or checks to write.

Some incentives to suspend evictions, it is questionable that the federal government can do this. It is much more a state matter. They will soon need a bailout of landlords or banks to cover these losses.

What is not included is liability protection for employers, schools or anyone due to the virus. The democrats refuse this protection. Such lawsuits will hamper any economic recovery. It will be another windfall for the trial lawyers and redistribution.

The biggest thing missing is blanket grants to the states. While they have received aid concerning the virus, it will be unlikely that any bailouts of states with a mismanagement problem can be expected.

This is likely meant to encourage the Democrats to now bargain for a relief bill that will be supported by both sides. It is now their move. Do they want to sue to stop these measures? That would be used as a political weapon by the republicans. We will likely see the new talking points today, as of this AM, they have yet to fashion a good response.