- The IRS is in a “better position” to issue incentive checks in August than the agency was in April, according to a union representative.
- But if Congress can not finalize additional economic relief measures this week, the controls may not come until September.
- Lawmakers agree on another $ 1,200 check that has been postponed for eligible Americans – but parties are divided over most other issues, such as unemployment and tax rates.
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The IRS is in a “better position” to issue incentive checks in August than the agency was in April, according to union representatives for the IRS.
Chad Hooper, national president of the Professional Managers Association, which counts IRS managers among its members, told CNBC on Tuesday that the deadline on Friday is the key to getting checks this month: “The infrastructure is too place to manage such a payment, “he said.
That news is important, given the first round of economic relief measures – such as a $ 600 unemployment supplement – expired at the end of July, while some 16.3 million Americans will be out of work.
Earlier this week, Treasury Secretary Steve Mnuchin said “if we can get a fair deal, we’re ready to do it this week”, when asked about an incentive plan during an interview with CNBC. However, lawmakers seem to be still deadlocked after more than two weeks of negotiations.
While both parties want another $ 1200 check that is eligible for Americans, the rest of their incentive plans hang in the balance, especially points related to unemployment benefits.
Qualification for the second check will likely be the same as the first, with those making $ 75,000 receiving the full amount, and a reduced amount going to those making between $ 75,000- $ 99,000. Those who have made more than $ 99,000 will not receive a check.
Republicans currently stand by the HEALS Act, which reduces unemployment benefits from $ 600 to $ 200 for the first two months. After that, the plan will move to 70% salary replacement. Democrats, meanwhile, have proposed the HEROS Act, which keeps the $ 600 unemployment benefit in place until 2021.
“We are considering cuts to the middle class and cuts to capital gains taxation to boost investment and jobs and liquidity,” White House economic adviser Larry Kudlow told reporters of the ongoing negotiations on Wednesday. “We’ve been looking at it. A while back. In another era, we called them tax cuts 2.0. The president has never lost those thoughts. He’s a tax cut in direct contrast to the Biden team, who are tax leaders. “
