President Joe Biden’s $1.9 trillion coronavirus rescue plan is moving forward, giving most Americans the hope of another round of stimulus checks.ThisEarlier Saturday, the bill will now continue to be submitted to the Senate.
Biden said in a brief speech after the vote in the House of Representatives that he hoped the senator would take “swift action” on the spending package called the “American Rescue Plan.”
He said: “We have no time to waste. If we act decisively, swiftly and boldly now, we can finally defeat this virus.”
The Senate may take this measure next week, which will need to eliminate some of the wrinkles that appeared in the negotiations. The biggest obstacle is a rule in the House of Representatives that will raise the federal minimum wage to $15 an hour by 2025.The salary increase cannot be included in the version of the House of Lords relief plan.
An analyst at the investment bank Raymond James said in the report: “We may see some final attempts by progressive Democrats next week to include salary increases in the current relief bill, but eventually We cannot see that these efforts are successful.”
According to Hunter Hammond, an analyst at Highland Securities, although the loss of wage increases is a blow to low-income workers, withdrawing them from Senate negotiations can effectively speed up the passage of the bill.
Hammond told investors in a research report: “Although this decision disappoints progressives, it makes it much easier for the Democrats to pass the bill.” “They will avoid a difficult battle in the Senate because the two Democratic senators oppose it. Raising the hourly salary to $15 an hour (although at least one of them said he can support a small increase), which means that the party could have been subjected to cruel internal sanctions. Fight for this topic.”
The bill will also increase weekly unemployment benefits from US$300 to US$400; provide funding for small businesses, schools, and cities and states; provide tax breaks for families with children; and increase government testing and contact on COVID-19 Tracking expenditures.
The Senate may vote on the plan later next week, and the House of Representatives will then make a final vote on the weekend of March 6 or the week of March 8. The lawmakers hope to pass the bill before March 14, when the expanded unemployment benefit of $300 a week will expire.
To be sure, disputes or disagreements may still derail the bill. But Democrats are using a process called budget reconciliation to pass legislation, which means that only a simple majority in the Senate is required to get approval, rather than most bills requiring 60 votes to overcome potential obstacles. In other words, the Democrats do not need the support of Republican senators to pass the rescue plan.
If the bill is passed before March 12, the additional unemployment assistance will be carried out on the Friday before it expires. According to the time limit for the second round of the IRS distribution, the stimulus check may start anytime from a few days to a week later. Touched the stimulus check of bank accounts in December.
The IRS said that earlier this month, it was observing the relief bill in preparation for the next round of payments. Ken Corbin, the Chief Taxpayer Experience Officer of the Internal Revenue Service (IRS), said: “We are watching this hill closely, although he has not predicted when the tax authorities will be able to distribute checks.”
The IRS relies on taxpayers’ latest tax returns to determine how much they should receive and when they can receive it.This is why some tax experts urge taxpayers, Especially if there are major changes in their lives, such as the birth of a child or the loss of their job or income last year.
Since the US Internal Revenue Service officially began accepting tax returns on February 12 and will close the tax return window on April 15, its customary date, the plan may be passed in the middle of the tax season.
If a taxpayer does not file a 2020 tax return before Congress passes its next relief bill, the agency may rely on its 2019 tax return to calculate its stimulus check payment-and that 2019 tax return may It does not reflect the loss of income during the economic crisis last year or for example a new child. In this case, taxpayers may not get the stimulus funds they deserve.
A person’s income is the main determinant of whether a person can obtain a check and the amount of payment.
Like the two previous stimulus checks, the fee for a single person is US$1,400, and the fee for a couple’s joint submission is US$2800. However, only individuals with an annual income of less than $75,000 will receive full payment, and married couples with an income of less than $150,000 will also receive full payment. If income exceeds these thresholds, payments will fall, with individuals gradually exceeding $100,000 and married couples gradually exceeding $200,000.
Some lawmakers believe that checks should be targeted at low-income households, because studies have shown that high-income households are rebounding from the economic impact of the pandemic. But other studies have shown that financial pain is widespread across the country. According to John Leer, an economist at Morning Consult, the number of adults who experienced financial difficulties last month compared with 12 There is almost no change from month to month.
His analysis found that the third round of checks for $1,400 would allow nearly 23 million adults to pay expenses within four months without having to bear more debts or occupy their savings.
Colleen McCreary, chief people officer of Credit Karma, told CBS MoneyWatch: “The third stimulus check is absolutely crucial.” “I can’t see a world. Without some additional stimulus funds, people will have a financial foothold.”