Currently, theare to banks and were entered as part of a one-time payment that was intended to help curb the financial blow caused by the outbreak of . Now the proposed legislator to sign a second stimulus check for 2020 is fueled by an unemployment rate of 14.7% in April, with more than 33 million people and the country that economists worldwide predict could be the worst since the Great Depression.
In recent days, the idea of this bill has quickly changed from a forward-looking conversation to elaborated legislation. Here's what we know about a second round of stimulus payments in 2020 for individuals. This story is regularly updated in the light of new information and is intended to provide an overview of the situation.
Summary: The First Coronavirus Stimulation Package
In an effort to mitigate the financial implications of the coronavirus outbreak, President Donald Trump signed a $ 2 trillion economic stimulus package in Marchtracking their checks.
How much would the proposed stimulus bill for coronavirus give? to individuals, if adopted?
The bill now being proposed – what the Democrats call the HEROES Act, according to a fact sheet from the House Appropriations Committee – includes a wide variety of benefits, including a second direct payment to individuals and households. It is suggested that the second bill, if legally signed, would generate a cash injection of up to $ 1,200 per family member, with a maximum of $ 6,000 per household. In addition, it would carry the current increased unemployment benefit of $ 600 per week (on top of the typical unemployment benefit) to January 2021.
The argument for a new round of incentive checks
The proposed legislation is a self-proclaimed "courageous response to the coronavirus pandemic and the economic collapse, "said the factsheet of the House. The financial support is intended to help "[cushion] hit the economic blow of the coronavirus crisis".
The goal of a second IRS stimulus check is in part "to put much needed money into the pockets of the American people," said home president Nancy Pelosi, in a recorded statement. You can see Pelosi, a California Democrat talking about the legislation here.
Since mid-March, more than 33 million American workers who lost their jobs have filed for unemployment. The actual number of unemployed since governors and mayors locked up their states and cities to stop the spread of the coronavirus is likely to be higher – perhaps millions higher – because many eligible have not made an unemployed claim. With the job losses, the nation's unemployment rate reached 14.7%. The newly unemployed and others who have suffered an economic blow from the pandemic could benefit from spending more money now.
The Argument Against a Second Wave of Aid Payments
Some in Washington, including Senate Leader Mitch McConnell, question whether aid measures have reached their goals and want to curb before approving more federal spending to impact the effects to evaluate. of the already approved aid packages. McConnell and others are also concerned with how additional stimulus packages will widen the historic federal deficit.
"So let me say the obvious," tweeted John Barasso, a Republican Senator from Wyoming, Tuesday . "What Nancy Pelosi proposes, the Senate will never pass."
Since that benefit is available in addition to regular unemployment benefits and the increased unemployment benefits of $ 600 per week, some critics have said that it will become more difficult to reduce unemployment in the coming years if people don't feel stimulated to return to work to go. The original aid measure also provides a 15% increase in federal food aid under the supplementary nutritional assistance program.
What the earlier proposals for a second round of economic stimulus payments included
Instead Some of them in Washington had argued that a more effective way to help struggling US taxpayers and stimulate the economy could be through wage tax cuts, helping workers retain more of their money per salary.
President Trump had supported this approach to get more dollars into the taxpayer's hands. "I want to see a payroll tax cut," he said at a virtual city council meeting earlier this month. & # 39; We don't do anything unless we get a wage tax cut. & # 39;
A cut in payroll tax could help people with jobs, but would not benefit someone who is already unemployed and without a salary, some economists say.
Others in Washington looked at broader, long-term approaches to help those who were baffled by the economic crisis of the corona virus. For example, Congressmen Ro Khanna and Tim Ryan suggested giving many US residents $ 2,000 a month for at least six months to help their household through the crisis. Senator Mitt Romney proposed a similar plan for $ 1,000 a month, and Senator Josh Hawley supported monthly payments to families with children.
Sens. Kamala Harris, Ed Markey and Bernie Sanders looked longer and introduced legislation that would bring in a $ 2,000 monthly check up to three months after the pandemic ended. Reps. Rashida Tlaib and Pramila Jayapal propose to extend payments one year after the end of the crisis.
What Happens Next
The House is expected to meet in Washington on Friday to vote on the bill, although "negotiations with Senate Republicans are not expected to start until this month at the earliest." according to The Wall Street Journal It is widely believed that the bill will be pushed back by republicans.
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