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On The Money: Jobless rate exceeds 20 percent in three states | Senate goes on break without passing small business loan fix | Biden pledges to not raise taxes on those making under $400K

On The Money: Jobless rate exceeds 20 percent in three states | Senate goes on break without passing small business loan fix | Biden pledges to not raise taxes on those making under $400K
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THE BIG DEAL— Unemployment rate exceeded 20 percent in three states last month: The jobless rate exceeded 20 percent in Hawaii, Michigan and Nevada last month when 43 states hit record-high unemployment because of the coronavirus pandemic, according to Labor Department figures released Friday.

  • Nevada had the highest unemployment rate in the country at 28.2 percent, almost double the national average of 14.7 percent. Michigan followed with 22.7 percent and Hawaii had 22.3 percent of its labor force looking for work.
  • Seven other states had jobless rates above the national average, which was just 3.5 percent as recently as February.

The report on state unemployment found that the effects of the coronavirus pandemic were not evenly distributed, even though all states were in worse shape than the previous month.

The Hill’s Niv Elis has more on the data here, including the unemployment rate in swing states that will decide the election.

 

LEADING THE DAY

Senate leaves for break without passing Paycheck Protection Program fix: The Senate left for a weeklong Memorial Day recess without passing bipartisan legislation to make fixes to the Paycheck Protection Program (PPP), the coronavirus relief program for small businesses. 

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What comes next: Sen. Marco RubioMarco Antonio RubioIntel officials say Iran, Russia seeking to influence election Senate Intel leaders warn of election systems threats Trump remarks put pressure on Barr MORE (R-Fla.), the chairman of the Small Business Committee, said that leadership was still trying to find out if any senator objected to passing the bill and left the door open to the Senate passing it during a pro forma session that is scheduled to continue next Tuesday.

"It's going to pass. It's just how long it takes to run the hotline and get all the offices to call back," he said. Rubio added that because every office is called during a hotline, "It could take two hours or it could take two days, it just depends. It's a very mysterious process."

Bigger stimulus on the way: Senate Majority Leader Mitch McConnellAddison (Mitch) Mitchell McConnellOn The Money: Power players play chess match on COVID-19 aid | Pelosi bullish, Trump tempers optimism | Analysis: Nearly 1M have run out of jobless benefits Trump casts doubt on hopes for quick stimulus deal after aides expressed optimism Power players play chess match on COVID-19 aid MORE (R-Ky.) signaled Thursday that the Senate GOP's decision to pause before starting work on another coronavirus relief bill could be nearing an end.

"I think there's a high likelihood that we'll do another rescue package. ... We're not quite ready to intelligently lay down the next step, but it's not too far off," McConnell said during an interview with Fox News. 

"We need to work smart here, help the people who are desperately in need, try to save as many jobs as possible and begin to open up the states, which are decisions by the governors," McConnell added. 

  • McConnell's remarks come amid growing calls from within his caucus for the Senate to pass another coronavirus bill, which would be the fifth piece of legislation passed by Congress to address the fallout from the pandemic, by the end of the June. 
  • McConnell said during the Fox News interview that the next bill will not resemble a roughly $3 trillion bill that passed the House along party lines last week, and vowed that the White House and Senate Republicans will be on the same page. 

The Hill’s Jordain Carney has more here

Related: Mnuchin says Congress must act to make key PPP change

 

Biden pledges to not raise taxes on those making under $400,000: Former Vice President Joe BidenJoe BidenTrump and advisers considering firing FBI director after election: WaPo Obama to campaign for Biden in Florida Supreme Court reinstates ban on curbside voting in Alabama MORE on Friday said that he would not increase taxes on those making less than $400,000 annually.

"Nobody making under 400,000 bucks would have their taxes raised. Period. Bingo," the presumptive Democratic presidential nominee said in an interview with CNBC.

Biden has floated a number of tax proposals during his campaign, largely targeted at raising taxes on wealthy individuals and businesses. These include:

Why it matters: Biden isn't the first presidential candidate to pledge not to raise taxes on people who make under a certain amount. Former President Obama said during his 2008 campaign that he wouldn't raise taxes on people who make under $250,000. But this type of pledge could make it more difficult to raise some of the revenue needed to pay for a number of Democratic policy objectives.

More from Biden’s CNBC interview: Biden hit President Trump's efforts to rescue the economy during the coronavirus pandemic, saying the focus has been on helping big corporations instead of small businesses.

 

GOOD TO KNOW