But now that 33 million people have recently filed for unemployment and the country is in danger of entering a recession that economists worldwide believe could be the worst since the Great Depression, talks are already underway of a second stimulus check to keep people afloat.
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 being discussed and gaining 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 1945 . technically a relief). package) including payments of up to $ 1,200 to eligible U.S. taxpayers and $ 500 for each child aged 16 or under. The IRS began sending checks in mid-April, and had made more than 122 million payments by the end of the month. The rollout was bumpy, withto assist in signing up and tracking their checks.
The argument for a new round of stimulation. checks
Since mid-March, 30 million American workers who lost their jobs have claimed unemployment. The actual number of unemployed since governors and mayors shut down their states and cities to stop the spread of the coronavirus is likely to be higher – perhaps 8.9 to 13.9 million more – because many eligible do not make an unemployed claim . 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 by cutting payroll taxes which 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 a payroll tax cut," he said at a 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 would not benefit someone who is already unemployed 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. Representatives [RashidaTlaibenPramilaJayapal looking ahead propose to extend those payments for a year after the end of the crisis.
What Will Happen After
While some are working in Congress to raise support for additional aid, so far neither the House nor the Senate have passed a bill for a second round of benefits to 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 .