(Detroit CBS)— Although the third round of economic relief is still being distributed to eligible Americans, many people are already asking for the fourth round of economic stimulus checks. As of last week, a total of approximately 130 million payments have been delivered, with a maximum payment of $1,400 per person. Of the US$422 billion allocated in the US$1.9 trillion “U.S. Rescue Plan Act,” there is a total of about US$335 billion. Paper checks and EIP cards continue to receive mail every day.
These relief payments are part of a broad effort to alleviate the economic impact of COVID on families and to recover from the pandemic while supporting the economy. The stimulus package also expanded unemployment benefits, strengthened child tax credits, and so on. The most recent round of irritation inspections was conducted after a payment of US$1
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Who supports the fourth stimulus check?
Last week, a group of Democratic senators, including Ron Wieden of Oregon, Elizabeth Warren of Massachusetts, and Bernie Sanders of Vermont, sent a letter to President Joe Biden, demanding “related to economic conditions.” Recurring direct payments and automatic unemployment insurance extensions.”
As the senator said in the letter: “This crisis is far from over. Families should make sure that they can put food on the table against the roof. Families should not be subject to changing legislative timetables and temporary solutions. .”
Earlier letters from 53 representatives to President Biden and Vice President Kamala Harris, led by Ilhan Omar of Minnesota, also proposed a similar position. “Performing regular direct payments before the economy recovers will help ensure that people can meet their basic needs, provide racially equal solutions, and shorten the duration of economic downturns.”
Most Americans also favor regular relief payments. According to a January “Data For Progress” poll, nearly two-thirds of voters support paying all Americans $2,000 a month during the pandemic. Supporters include most independent parties and Republicans. Many economists also joined in. Experts in this field pointed out in an open letter in 2020: “Direct cash payment is an indispensable tool. It will improve economic security when necessary, promote consumer spending, accelerate economic recovery, and promote government and economic development at all levels. Certainty.”
Why the fourth stimulus test is unlikely
All of this colorful support keeps the possibility of another stimulus test (or recurring stimulus test) alive. However, this did not make them possible. there are many reasons.
The vaccination is progressing well, and there are three different options available to the public. The President recently stated that by mid-April, 90% of American adults will be eligible. In fact, although most states have lowered the age necessary to qualify, it actually takes longer. The US government is moving towards its revised goal of 200 million doses in the first 100 days. Americans have received more than 165 million doses, 32% of the population has received at least one dose, and 18.5% have been fully vaccinated. The number of vaccinations continues to increase at a rate of nearly three million doses per day.
With the steady growth of vaccination, the economy is also showing signs of recovery. The unemployment rate is still higher than during non-pandemic periods. In the last full week of March, about 719,000 people initially applied for unemployment insurance, a slight increase from the previous week. (In a typical week before the pandemic, there were approximately 250,000 new jobless applications.) However, the average over the past four weeks is the lowest level in a year. Consumer confidence continues to climb, reaching the highest level since the pandemic began. In the next six months, nearly 41% of consumers also found that business conditions have improved, an increase of more than 10% from the previous month.
Consumer spending drives two-thirds of the country’s economy. The third stimulus check has improved people’s spending power and may increase their future optimism. Continued vaccination will undoubtedly help, and this vaccination will eventually allow the hardest hit part of the economy to reopen safely. As companies hire to meet consumer demand, all these additional expenditures and the release of suppressed demand should bring more job opportunities. With the opening up of the economy, the need for the fourth round of stimulus checks has diminished.
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The American Rescue Plan Act was passed along the party. Republicans are not interested in spending nearly $1.9 trillion, although some people do support the third round of stimulus checks. They called the plan the “Blue National Relief Plan”, claiming that the plan is far beyond the scope of COVID and will increase the deficit and cause inflation.
With the support of the Republican Party, the Democrats passed the bill in the Senate using a process called reconciliation. In this way, matters related to the budget can be passed by a simple majority instead of 60 votes against disputes. According to these rules, usually only one statement can be passed per fiscal year. But the fiscal year ends in October. Therefore, another stimulus package can be proposed in the fall and theoretically promote reconciliation. Otherwise, it will need at least 10 Republican votes, and each Democratic vote.
But the Biden administration has other priorities. One of its biggest challenges is to pass the recently launched infrastructure plan, which also faces opposition from the Republican Party. The US employment plan was announced last week. The plan is worth 2 trillion US dollars and aims to rebuild roads, repair bridges, abolish lead pipes, modernize the national power grid, and so on. It does not include other stimulus checks. Republicans opposed the plan, partly because it relied on higher corporate taxes.
The American Family Plan will be announced in a few weeks. What it contains has not yet been announced, although it may cost 1 to 2 trillion dollars. The government believes that the funds will come from higher taxes on the wealthy. Republicans may also oppose tax increases.
Before any plan is put to a vote, a lot of negotiations and possible reductions seem inevitable. In both cases, Biden will face a battle, attracting 10 votes in the Senate. As a result, the Democratic Party is likely to expect another round of reconciliation to promote a representative piece of legislation. Their chances of using it to pass the fourth stimulus test are very low.
What other assistance is there?
Although a fourth economic stimulus is unlikely, more laws on direct payments to Americans have been signed to the United States. The American Rescue Plan Act includes improved child tax credits and expanded unemployment benefits.
Under the revised child tax credit, the Internal Revenue Service (IRS) will pay $3,600 per year for each child under 5 years old and $3,000 per year for each child between 6 and 17 years old. From July to December 2021, the rest will be issued when the recipient submits the 2021 tax. (Many people expect that “regular” actually means monthly or possibly quarterly, but the IRS must still determine this.) The income will not depend on the recipient’s current tax burden. In other words, eligible families will receive the tax in full, no matter how much tax they owe. The annual income of individuals will exceed US$75,000, the annual income of married couples will exceed US$150,000, and payments will be phased out. The more generous credit is only available in 2021, although Democrats may seek to extend the credit period.
The “U.S. Rescue Plan Act” also extended the weekly federal unemployment insurance benefits by $300 through Labor Day. Recipients whose household income is less than $150,000 do not have to pay taxes on the first $10,200 of unemployment benefits.People eligible for Pandemic Emergency Unemployment Compensation (PEUC), including people who have run out of state benefits, and Pandemic Unemployment Assistance (PUA), covering freelancers and show workers, Their interests will continue until early September. PEUC was used up after 53 weeks. The PUA expires after 79 weeks.
The far-reaching “U.S. Jobs Program” includes elements that are traditionally unrelated to infrastructure. These amounts range from US$213 billion earmarked for affordable housing to US$100 billion earmarked for workforce development among the underserved. The plan also hopes to increase the salaries of caregivers who take care of the elderly and the disabled. Each of these efforts will bring more money to the affected people. From a broader perspective, the plan also has the potential to create many employment opportunities in a wide range of economic fields. Of course, the extra money in people’s pockets is still hypothetical. The plan must still find a solution in Congress.
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