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If you expect a larger second stimulus control, you may not be lucky.
This is what you need to know.
Second stimulus check: less than $ 1,200?
As reported by Fox Business, White House economic adviser Larry Kudlow says the second stimulus checks could be smaller than $ 1,200 and aimed at Americans with Low income and those who are unemployed. Why? The answer: cost. Senate Majority Mitch McConnell (R-KY) wants to target around $ 1.3 trillion for the next stimulus bill. This amount is substantially less than the $ 3 trillion Heroes Bill passed by House Democrats, and the $ 2 trillion stimulus amount that President Donald Trump is targeting. Trump also said he wants a second stimulus control bigger than Democrats’ support, which runs contrary to Kudlow’s comments. In the Heroes Act, House Democrats proposed a second stimulus check of $ 1,200 and $ 1,200 for each dependent, with a maximum of three dependents. The Delta between Democrats and Republicans over second stimulus checks and other issues may ultimately narrow, but some in Washington are concerned that the next stimulus deal may crumble. This is not the first time that Kudlow says that the second stimulus checks will be adapted in a limited way. For example, Kudlow told him Fox Business Last month, that second stimulus check could target those who lost their jobs and need the most financial assistance. However, the size of the second round of stimulus controls is not the only potential limitation.
Can second stimulus controls be limited to an income of $ 40,000?
In addition to limiting the dollar amount of second stimulus checks, McConnell said Monday that Congress may limit Who is eligible to receive a second stimulus verification?. Despite popular expectations, not everyone can receive a second stimulus test (and potentially fewer people than the first stimulus test). McConnell did not specifically discuss the eligibility criteria for the second stimulus checks, but did refer to the fact that Americans earning $ 40,000 or less a year, especially in the hospitality industry, have been most affected by the Covid-19 pandemic. McConnell’s comments might suggest that the second round of stimulus controls may have a lower income threshold than the Cares Act, the $ 2.2 billion stimulus package that included the first stimulus checks. The Care Act included a $ 1,200 stimulus check for individuals earning up to $ 75,000 in annual adjusted gross income ($ 150,000 for married taxpayers). The $ 1,200 stimulus check was “removed” (decreased) for income over $ 75,000 (and over $ 150,000 for married / joint filers) and was not available to people who earned more than $ 99,000 (and $ 198,000 for married joint filers.) According to McConnell’s comments, this is what we know:
Second Stimulus Checks – Key Questions
Based on these latest developments, here are some key questions that Congress should address:
- $ 40,000 income limit: If you earn more than $ 40,000 in adjusted gross income, will you receive a second stimulus check?
- Second stimulus controls removed: Is the maximum income to receive a second full stimulus check $ 40,000, or will this threshold be the maximum income to receive any stimulus check? Simply put, will there be any second stimulus tests that are phased out as the first stimulus tests?
- Furloughed: If the second stimulus checks are aimed at those who have lost their job, what happens if they are suspended?
- Bonus for return to work: Will unemployed Americans receive a second stimulus check? plus a return to work bonus? Republicans in the Senate and White House want to replace the $ 600 per week supplemental unemployment benefit with a $ 450 return to work bonus for Americans returning to work.
Final thoughts
If you combine Kudlow and McConnell’s comments, the second stimulus checks may be:
- specifically targeted at low-income people;
- closely targeted at unemployed people; and
- less than $ 1,200.
At the same time, Trump has asked for a second, larger stimulus check, and House Democrats want to keep the second round of stimulus checks the same as the first (but they want to increase the dependent payment from $ 500 to $ 1,200) . Republicans have only 53 seats in the Senate, so they will need to commit to the upcoming stimulus bill. That commitment could happen with the second stimulus checks, but it can also focus on state and local aid and unemployment benefits, which are two other priority and burning issues. Congress returns from recess on July 20 and will work to finalize a deal before leaving for the summer recess after August 7.
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