Jobless claims rose for the second straight week to a level not seen since the end of summer, following a mere 245,000 jobs added in November. The situation is expected to get worse before it gets better. What would be the opposite of relief for small businesses and workers that Congress always claims to be a priority? Letting GSP expire on December 31.
GSP expiration would cost companies about $250 million in the first quarter of 2021. At a time when Congress is desperately trying to provide assistance to struggling companies and families, how could this be helpful?
One 300-worker company – the largest employer in a town of 1,200 – would pay $20,000 PER DAY in new taxes if Congress lets GSP expire. Like many companies, their costs from GSP expiration would far exceed any potential government support.
As noted yesterday, much of the damage from even temporary lapses cannot be undone. Workers that get laid off or lose their healthcare won’t get retroactive pay or benefits when Congress eventually gets around to acting.
With everything else happening in the U.S. economy – and vaccines literally providing hope for brighter days in mid-2021 – there could not be a worse time for Congress to let GSP expire. But will they listen?