Economic indicators show that the labor market is experiencing a period of rising wages and more job choices for workers as Americans continue to recover from the economic effects of the COVID-19 pandemic. Research indicates that the scale of the impact of government programs like Unemployment Insurance (UI) on the timing of workers’ return to work is small to negligible. Real-time evidence and broad academic consensus suggest that the labor market is returning to its pre-pandemic tightness, countering claims by proponents of a “labor shortage.” Before the pandemic, wages were rising and workers had more choices for jobs that fit their skills and needs as the labor market tightened.
Jul 09 2021
Economic Update - July 9, 2021
Jul 02 2021
Economic Update - July 2, 2021
Jun 25 2021
Economic Update - June 25, 2021
Jun 17 2021
Economic Update - June 17, 2021
Jun 17 2021
Investing in the IRS to Close the Tax Gap
In April 2021, IRS Commissioner Charles Rettig estimated that the tax gap—the difference between the taxes that are owed and the taxes that are actually paid—“could approach and possibly exceed $1 trillion” each year.1 Commissioner Rettig attributed much of the growing tax gap to the lightly regulated cryptocurrency sector, foreign-source income and the abuse of passthrough provisions.2 As some taxpayers continuously develop ever more sophisticated methods of tax evasion, it has become increasingly difficult for the IRS to maintain strong enforcement efforts, particularly as its budget and staffing levels have been slashed in recent years.
Jun 11 2021
Economic Update - June 11, 2021
Jun 04 2021
Economic Update - June 4, 2021
As evidenced by the most recent Employment Situation report from the Bureau of Labor Statistics (BLS), millions of Americans have yet to return to work, despite growing numbers of job openings. Unemployment Insurance (UI) has played an important role in the recovery by stabilizing consumption and keeping jobseekers from dropping out of the labor force entirely. Studies have documented that, following a job loss, food or nondurable consumption declines between 6 and 9 percent. Once UI benefits are exhausted, similar consumption can drop by up to 12% on average. By ensuring that, even after a job loss, covered workers can continue to fulfill their basic subsistence needs (e.g. rent, food, medications, etc.), UI provides liquidity constrained displaced workers with the breathing room they need to find a better-paying job that matches their skills, experience and family demands.
As evidenced by the most recent Employment Situation report from the Bureau of Labor Statistics (BLS), millions of Americans have yet to return to work, despite growing numbers of job openings. Unemployment Insurance (UI) has played an important role in the recovery by stabilizing consumption and keeping jobseekers from dropping out of the labor force entirely. Studies have documented that, following a job loss, food or nondurable consumption declines between 6 and 9 percent. Once UI benefits are exhausted, similar consumption can drop by up to 12% on average. By ensuring that, even after a job loss, covered workers can continue to fulfill their basic subsistence needs (e.g. rent, food, medications, etc.), UI provides liquidity constrained displaced workers with the breathing room they need to find a better-paying job that matches their skills, experience and family demands.
