Paul L. Caron

Wednesday, August 12, 2020

Galle, Gamage, Scharff & Shanske: States Should Quickly Reform Unemployment Insurance

Brian D. Galle (Georgetown), David Gamage (Indiana), Erin A. Scharff (Arizona State) & Darien Shanske (UC-Davis), States Should Quickly Reform Unemployment Insurance, 96 Tax Notes State 635 (May 4, 2020):

This essay argues that state governments should act to reform unemployment insurance eligibility and benefits and the taxes funding these programs, to better cope with the budget crises caused by COVID-19 and the economic downturn.

When the coronavirus crisis is over, the country will need to confront the poor program design choices that made UI a shadow of what it was made for.31 We hope to address some of these steps in a later article. But even now, before such reform, the system has enough flexibility that states can abandon decades of bad policy and transform UI into the crisis stopper it was designed to be. States should take advantage of this flexibility promptly to prevent unnecessary harm.

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