Another round of federal stimulus checks It could soon reach millions of American taxpayers, with Treasury Secretary Steven Mnuchin pointing out Thursday that President Donald Trump is eager to go ahead with the payments.
Mnuchin announced Thursday that the White House and Senate Republicans have reached a “fundamental agreement“in an opening legislative proposal to provide Americans with additional relief from the coronavirus.
While the details are not yet known, reports suggest some Republican lawmakers may try to limit stimulus controls to low-income households. When asked about another round of stimulus checks earlier this month, for example, Senate Majority Leader Mitch McConnell noted that the people most affected by the coronavirus pandemic are those who earn less than $ 40,000. year.
Limiting checks to people who earn less than that amount, or $ 80,000 for married couples, would mean that millions of middle-class taxpayers would not qualify for the payments. An analysis of the IRS data suggests that more than 60 million people, including married couples and single taxpayers, who qualified for the first round of stimulus checks could be excluded from the second round if the next bill lowers the threshold for income. In total, the IRS has sent more than 160 million stimulus checks, which the government calls “economic impact payments.”
This is what we know so far about a possible second stimulus check.
What about that $ 40,000 income limit?
This stems from McConnell’s statement at an event in early July that says he is open to more stimulus checks, but focuses on people who make less than $ 40,000 a year.
That limit is not certain to survive disputes on Capitol Hill. When asked about that limit, Speaker of the House of Representatives Nancy Pelosi questioned it. “I don’t know where the $ 40,000 comes from,” he said at a press conference in July. “The $ 40,000 would have to be explained, justified, and the rest.”
Approximately 165 million married and single taxpayers fell below the income thresholds for the first stimulus checks, IRS data shows. Under the Coronavirus Financial Aid, Relief and Security Act, or CARES, the Act, single taxpayers earning less than $ 75,000 and married taxpayers earning less than $ 150,000 qualified for full payments of $ 1,200 and $ 2,4000, respectively. The payments gradually decreased until they were completely phased out for single people with annual incomes above $ 98,000 and married couples earning more than $ 199,000.
Setting the income limit to qualify for a check at $ 40,000 for individual taxpayers, and assuming it would double to approximately $ 80,000 for married taxpayers, would reduce the number of Americans eligible for a payment to approximately 106 million people, or approximately 60 million fewer people who received the first check.
What do the experts say?
Some economists support a more specific approach to issuing stimulus controls, noting that higher-income households tend to save money, especially in uncertain times, while low-income households spend it, providing further impetus to economy in general.
“Low-income households get it, they spend it right away,” Moody’s Analytics chief economist Mark Zandi said in a conference call earlier this month to discuss the federal response to the coronavirus recession.
Are there other stimulus plans on the table?
Yes. The $ 3 Billion Proposal for Omnibus Emergency Solutions for Health and Economic Recovery, or HEROES, Law authorize another round of stimulus payments for most homes. However, although the bill was passed by the Democrat-controlled House in May, it is unclear whether the Republican-controlled Senate will adopt this measure.
The HEROES Act would offer a higher stimulus payment than the CARES Act. The measure requires each member of a household to receive $ 1,200, including children. Income thresholds would remain the same as under the CARES Act, meaning single taxpayers earning less than $ 75,000 and married taxpayers earning a total of $ 150,000 would receive full payments. For example, a family of four whose parents earn less than $ 150,000 would receive $ 4,800.
To see how much you would receive under the HEROES Act, you can check out this OmniCalculator stimulus calculator.
How fast would the payments arrive?
Depending on how the negotiations are going in Washington, new stimulus controls could be issued starting in August. President Trump’s preference “is to make sure we send direct payments quickly, so that in August people will get more money,” Mnuchin told CNBC.
Trump told Fox News earlier this month that he is in favor of providing a second round of stimulus payments that would be even larger than what Democrats are proposing. Whatever the amount, it is clear that the White House, facing a tough reelection bid in November, favors a substantial payout.
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