The odds are now in America’s favor for a second stimulus check to be included in the next one. … [+]
Reports yesterday that the amount and income eligibility of a second stimulus check had been confirmed appear to be premature. The reality is that while a second direct payment was included in the summary of the proposal distributed by Republicans on Thursday, no other details were offered.
Second stimulus check included in the Republican Party stimulus proposal
There has been rampant speculation as to whether or not a second stimulus check would materialize as part of the coronavirus stimulus package proposal that Senate Republicans are planning to present. After resisting another direct payment, most Republicans now recognize that such payment is necessary given the worsening economic outlook and the record number of coronavirus cases in the United States. Republicans have rallied around a second stimulus check in recent days, a marked departure from their position just two months ago.
Earlier this week, Senate Majority Leader Mitch McConnell officially endorsed another stimulus check. “We want another round of direct payments: direct payments to help American families continue to drive our national return,” he said.
In addition, a draft proposal, distributed early Thursday and shared by The New York Times, confirmed the existence of a second stimulus control. Under the heading “Stimulus Payments,” the document states that “they will be included.”
$ 1,200 amount and $ 75,000 income eligibility still speculative
While the Republican Party draft confirmed that Republicans intend to propose a second payment, it did not confirm speculative reports that the payment would be $ 1,200 or that it would reflect the first stimulus check under the CARES Act, which set a limit. $ 75,000 income for eligible individual taxpayers to receive full payment.
Yes, the sentence under the heading “Stimulus Payments” begins with “will be included: ‘However, the sentence continues to state unequivocally,” but the amount of the payment and the eligibility criteria are TBA. “From the Republican Party draft to your ears.
Why did some report that $ 1,200 was the confirmed amount?
Several media reported the $ 1,200 figure yesterday, but all relied on one source, Treasury Secretary Steve Mnuchin, making a one-line comment. Referring to a second stimulus check, Mnuchin said: “We are talking about the same arrangement as last time, so our proposal is exactly the same proposal as last time.”
Mnuchin’s word is not gospel
As noted in a previous column, Mnuchin has erred in recent statements and it may not be appropriate to rely on a one-sentence comment without corroborating evidence. For example, he wrongly said until Monday that a payroll tax cut was “on the bill.” As the Republican Party draft showed on Thursday, it was not.
McConnell has also done his best to keep the number and eligibility criteria in place given the smooth flow of negotiations with the White House and the potential need to pivot quickly. How The hill He reportedly declined to speak about the details of direct payments when journalists pressured him this week. “We will present the details. I am going to present a bill in the next few days which is a starting point that enjoys quite significant support among Republican senators, probably not all. And, at that point, we will be more specific on how to allocate But we envision direct controls again, “he said Tuesday.
When will we know and what could change?
Hopefully, we’ll uncover the specifics about the proposed second stimulus check on Monday. “The [Trump] The administration has requested additional time to review the details, but we will present the proposal early next week, “McConnell said. “In principle we have an agreement on the form of the package.” Republicans will spend today and the weekend trying to work out the details with the White House and plan to present the plan on Monday morning when the Senate meets.
There are good reasons for a second stimulus payment to reflect the first in terms of size and income eligibility. On the one hand, it will facilitate negotiations with Democrats on a compromised version. Second, it will help speed up the distribution of payments, since “the more complex the criteria are and the more they differ from the first round, the longer it will take to obtain payments,” according to the The Wall Street Journal. “If the parameters stayed the same, we could do it really quickly,” said Senator Thune.
However, there is still a faction within the White House that is pushing to revive the inclusion of a payroll tax cut in the stimulus proposal. White House economic adviser Stephen Moore insisted that the payroll tax cut was back on the table after the Republican Party delayed publication of the proposal yesterday. As mentioned in yesterday’s column, “Although one should take Moore’s comments with the same grain of salt as Mnuchin’s, the possible resurrection of a payroll tax cut could jeopardize the size or limit of income from a second stimulus check. “
The result
The odds are now in America’s favor for a second stimulus check to be included in the next stimulus package; however, it has not yet been confirmed if the payments are $ 1,200 or less and if income eligibility will remain the same as under the CARES Act is still tentative.
Additional related readings:
Stimulus Package Update: Republicans Unite on Second Stimulus Control, Oppose Payroll Tax Cut
Delaying the stimulus package proposal could jeopardize the size of the second potential stimulus check
Is Trump Using the Next Stimulus Package to Undermine Social Security and Medicare Funding?
Trump threatens the stimulus package; Insist on including payroll tax cut
Cutting Trump’s payroll taxes is an ineffective way to help the economy
The second stimulus check and the $ 600 benefit extension may be delayed; Here’s why that might be a good thing
Expect $ 600 federal unemployment checks cut to $ 400 or less
Income Eligibility for Second Stimulus Check May Limit $ 40,000
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