Senator Johnson: Federal government needs to focus on helping states, businesses during coronavirus pandemic

A large economic hit is expected to happen in the wake of the COVID-19 pandemic.

Republican Senator Ron Johnson of Wisconsin says that while the first and foremost priority for government is to stop the spread of coronavirus, the nation also has to deal with the repercussions of businesses not able to attract customers in a massive number of sectors, particularly after moves like Governor Tony Evers to limit public gatherings to 50 or fewer people.

“You’re going to start seeing these large layoffs as businesses are being forced to shut down with what’s happening with social distancing,” said Senator Johnson on WTMJ’s “Steve Scaffidi Show.”

“We have to help workers with relief in these industries that are shutting down.”

He stated that it would be better to have “the federal government assist states in using their unemployment funds,” but the feds need to focus on assisting businesses so they can keep their employees.

“(House Speaker) Nancy Pelosi is going to make businesses give paid leave when people aren’t working. The businesses are going to pay for that,” said Johnson.

“It sounds like the Treasury…will provide those funds by, for example, not making businesses pay their payroll witholding funds. They can use those for making those payments. They can also not pay their estimated tax withholdings. They can also claim their refundable tax credits.”

Senator Johnson said at the time of his talk with Steve that there was a question as to whether the Treasury Department could act independently, or whether it had to become part of the legislation the House had already approved this past weekend for coronavirus relief.