The IRS has not yet finished making stimulus payments to millions of Americans for up to $ 1,200 per person, and some are already wondering if those checks will do enough and if there will be a secondemergency bill. to be . The " ", which were paid out by the IRS through direct deposits to banks and through postal checks, were introduced as a one-off payment designed to mitigate the financial hit caused by the outbreak of COVID curb. 19.
Today, while there is not enough support in Congress to pass a second stimulus package for individuals – what some call the "CARES 2 Act" – a handful of ideas from Congressmen are discussed and win of traction. Here's what we know about a second round of stimulus payments in 2020 for individuals.
Summary: The First Coronavirus Stimulation Package
In an effort to mitigate the financial impact of the coronavirus outbreak, President Donald Trump signed a $ 2 trillion economic stimulus package in Marchtracking their checks.
The argument for a new round of stimulation. checks
Since mid-March, more than 33 million American workers who lost their jobs have claimed 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.
What are Proposals for a Second Round of Economic Incentive Payments
Rather than a one-off payment, some in Washington claim a more effective way of helping struggling US taxpayers and boosting the economy through lowering payroll taxes thereby employees can keep more of their money per salary.
President Trump has supported this approach to get more dollars into the taxpayer's hands. "I want to see a cut in payroll tax," he said at a virutal town hall meeting earlier this month. & # 39; We don't do anything unless we get a wage tax cut. & # 39;
A wage tax cut could help people with jobs, but wouldn't benefit anyone without work and without a salary, some economists say.
Others in Washington are looking at broader, long-term approaches to help those stagnated by the economic crisis of the corona virus. For example, Congressmen Ro Khanna and Tim Ryan suggest giving many US residents at least $ 2,000 a month for at least six months to help their household through the crisis. Senator Mitt Romney has proposed a similar plan for $ 1,000 a month, and Senator Josh Hawley supports monthly payments to families with children.
Senators Kamala Harris, Ed Markey and Bernie Sanders, who take a longer look, have enacted legislation that would provide a monthly check of $ 2,000 up to three months after the end of the pandemic. Representatives Rashida Tlaib and Pramila Jayapal propose to extend payments one year after the end of the crisis.
What Will Happen After
While some in Congress are working to raise support for additional aid, neither the House nor the Senate have so far passed a bill for a second round of benefits for individuals. We are keeping an eye on developments and will update this article regularly.
In the meantime, read more about the financial resources available to you. Here's what you need to know aboutand and how you .