Kudlow says next coronavirus relief package needs to include 'long-term' measures to support economy

Senior White House economic adviser Larry Kudlow said Friday the next coronavirus relief package should include long-term relief measures that pay Americans more to "work, invest and take risk."

"We need to move from rescue assistance to more long-term economic growth incentives," Kudlow said during an interview with FOX Business' Stuart Varney.

Some options currently under consideration at the White House include a payroll tax cut, liability protections for businesses reopening during the outbreak, and tax deductions or write-offs for individuals who take a vacation during a defined period of time.

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Senate Majority Leader Mitch McConnell has told Trump officials behind closed doors that another round of fiscal stimulus from Congress could be just under $1 trillion, a number the administration was receptive to, according to Bloomberg News, citing people familiar with the matter who spoke on condition of anonymity.

Kudlow said he expects negotiations on the fourth round of stimulus to begin after the Fourth of July. The Senate is not scheduled to return to Washington until July 20, making it unlikely that lawmakers will pass another round of aid before that date.

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So far, Congress has passed four massive stimulus packages totaling nearly $3 trillion to blunt the economic pain from the virus outbreak. That includes the $2.2 trillion CARES Act signed into law at the end of March, which sent one-time payments of up to $1,200 to Americans who earn less than $99,000.

Lawmakers on both sides of the aisle have agreed that another round of aid is likely necessary to help American businesses and workers recover from the lockdown, which is without precedent.

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Kudlow's comments on the heels of the better-than-expected May jobs report, which revealed that U.S. employers added a stunning 2.5 million jobs last month. The unemployment rate dropped to 13.3 percent from 14.7 percent, signaling the economy is starting to recover from the virus outbreak.

"The recovery has begun!" Treasury Secretary Steven Mnuchin tweeted.

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