[Congressional Record Volume 166, Number 134 (Wednesday, July 29, 2020)]
[Senate]
[Pages S4575-S4576]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
HEALS Act
Mr. PORTMAN. Mr. President, I am here on the floor to talk about some
of the steps that Congress should take in response to the coronavirus
pandemic. I am going to start with talking about the legislation that
the majority leader, Senator Mitch McConnell, introduced yesterday.
One of the aspects of it that hasn't gotten much attention and that,
I think, is very positive and a very effective way to get the economy
moving in a safe way is with some tax legislation. These are tax
credits and tax deductions that help to encourage the hiring of new
workers but that also do so in a safe way. These are the kinds of
things that make a lot of sense and that have a lot of bipartisan
support and appeal, so I think it should be part of whatever final
package we end up with.
The goal of these tax incentives is to say that we want people to
reenter the workforce but to do it in a safe and sustainable way. For
example, in the McConnell proposal is legislation I have introduced,
called the Healthy Workplaces Tax Credit Act. It is very simple. It
says there will be a credit on the employer's side of payroll taxes
against qualified employee protection expenses and workplace
reconfiguration expenses to ensure employers can afford additional
safety measures.
As I travel around the State of Ohio, I see the Plexiglas dividers.
You have probably seen those in offices where there are more open
settings. You see it in a lot of retail places now. There is a cost to
that, but there is also a cost to personal protective gear--the masks
and the gowns and the gloves and the other things that people are
needing in order to have a safe workplace. As I have been in some of
the factories around Ohio, I have also seen that they have had to
reconfigure the factory spaces in order to provide more social
distancing. At one plant, in its floor plan, it had expanded the
lunchroom in order to provide more social distancing, and that, of
course, meant there was less space for manufacturing. These are costs,
and these are the kinds of things that could be part of this credit.
So my hope is, whether it is a thermometer check or whether it is
more testing or whether it is PPE or whether it is more hand sanitizer,
that we could encourage people to use these things by having a tax
credit. It would provide an immediate stimulus to the economy as well,
which is a good thing because many businesses would be operating at a
loss and not have taxable income, but they would have payroll tax
liability, and this is a credit to the payroll tax.
It also applies, by the way, to nonprofits, as it should, and to the
501(c)(3)s. I was at one of the alcohol and drug addiction entities in
one of our counties the week before last, and it had Plexiglas up.
Frankly, it is hurting in terms of its budget right now, but it felt
like it had to have a safe place for people to work. We want everybody
to have a safe place. We want
[[Page S4576]]
people to go back to work and to go back safely.
I commend Senator McConnell for including that bill in the CARES 2.0
package that was released this week. This tax credit will support
efforts to make the workplace safe and healthy and build consumer
confidence in that all of the appropriate measures are being taken. It
is important to get consumers back in the mix. Whether it is going back
into a restaurant and feeling safe or going back to a retail
establishment, if people feel safe, they are more likely to go back,
and this economy can get going again. So I think it is something,
again, both sides of the aisle should be able to support, and it will
show we are doing everything we can to get people back to more normal
lives.
Second, with the unemployment rate still at about 11 percent, we need
to encourage hiring and employee retention as this virus continues to
affect our economy. In the McConnell proposal, we have a way to create
this incentive that builds on legislation we have already passed in the
form of the work opportunity tax credit. This is an existing law that
gives employers an incentive to hire individuals who might not
otherwise be able to get a job.
Categories now include, as an example, our veterans. So, if you are a
veteran and are having a tough time getting a job, you can go through
the work opportunity tax credit, and the employer can get a credit for
hiring you initially. By the way, almost everyone I talk to says these
people end up being hired full time and being paid their full wages. In
the meantime, they get a credit to bring them on during a first
transition period, so it works.
Another category, as an example, is the folks who have been let out
of prison. Second chance individuals have a chance under the work
opportunity tax credit, WOTC, to get a job.
We have proposed adding a new category, which is qualified COVID-19
employees--those who are on unemployment insurance immediately prior to
their hiring date. It increases the work opportunity tax credit amount
for this new targeted group of individuals from 40 percent of the first
$6,000 in qualified wages to 50 percent of the first $10,000 in
qualified wages. Again, it encourages us to help get people off
unemployment insurance and back to work. Let's say they work for a
company that is not going back because of COVID-19. Let's say it is a
movie theater or a bowling alley or, maybe, a bar. Those individuals
would qualify.
Third, I support a proposal in this McConnell draft that builds on
what is called the employee retention tax credit. That is already in
law. We put it in law in the first CARES Act. The credit was a good
start, but it needs to be updated and expanded given the course of our
economy since March and what has happened with the coronavirus. This
credit applies to employers who have operations partially or fully
suspended due to COVID-19 and any related government order saying that
one has to shut down but has chosen to retain one's affected employees.
It is a credit that increases from the CARES 1 from 50 to 65 percent
per employee--from $10,000 under current law for the whole year and
$10,000 per quarter. It also helps businesses that have had a 25-
percent decline in revenues, not a 50-percent decline in revenues.
It is for the group of companies that may not have qualified for a
PPP credit or a PPP loan--they may not have gotten one--but is having a
tough time keeping their workers. This would encourage them to keep
those workers and to bring on new workers. Again, it is the kind of
support that our workforce needs as the economy reopens and companies
resume ramping up operations. It helps to bring people off the
unemployment rolls. It is a pull into the workforce, and that is a good
thing.
These are commonsense proposals. What is more, historically, they
have been policies that have had bipartisan support. I worked with my
friend Senator Ben Cardin, on the other side, in designing the employee
retention tax credit back in March, and expanding the work opportunity
tax credit has always had bipartisan support.
On the healthy workplace credit, Senator Sinema, of Arizona, has a
similar bill that goes a little further, but it is very similar. I see
no reason we can't take what we all agree on works and make it even
better in this new package.
Again, these tax incentives are the kind of bipartisan consensus-
builders that we ought to be looking at right now to get into a new
package, hopefully, by the end of this week. We have to ensure--I think
all of us agree--the safe reopening of our economy, and these tax
provisions do that