Senate Majority Leader Mitch McConnell suggested that the second stimulus check be limited to an annual income of $ 40,000. This represents more than 80 million Americans, or 45 percent of total filing units by expanded income group, according to the Policy Simulation Library, a collection of open-source models for policy analysis.
Researchers Jasmine Mah and Bogna Haponiuk recently created a stimulus check calculator with an income limitation of $ 40,000 to help Americans determine if they would qualify for a second stimulus check and how much money they could receive. The calculator is part of the Omni Calculator Project. It takes into account income group, tax status, and number of dependents.
“The latest update to a $ 40,000 limit sparked a lot of curiosity about what it could mean for millions of Americans,” said Mah. he added.
Jeff Stein, a White House economics reporter for The Washington Post, shared that the Republican party is moving toward the $ 40,000 income limit. “Multiple sources say McConnell not only threw $ 40,000 as a random cut: consensus within the Republican Party is moving in that direction, which would dramatically limit eligibility,” he tweeted.
To see how much money you can receive for the next stimulus check, take a look at the stimulus check calculator with a limit of $ 40,000. The calculator uses an income limit of $ 40,000 per person or $ 80,000 per married couple filing a joint return. Estimates are based on the monetary amounts proposed in the HEROES Act.
The $ 3 trillion HEROES Act, which remains the most developed bill to follow the CARES Act, would provide generous stimulus controls of up to $ 6,000 per family. Americans would receive up to $ 1,200 each and an additional $ 1,200 per dependent (up to three dependents per family), depending on income. This includes adult dependents over the age of 17, a group that was excluded from qualifying for stimulus payments sent through the CARES Act.
It is important to note that the payment amounts proposed by the HEROES Law may not enter the next stimulus package. In fact, White House economic adviser Larry Kudlow told reporters last week that the next round of stimulus checks could be less than $ 1,200. President Trump, on the other hand, hinted that the second stimulus checks could be “very generous.” However, the stimulus verification calculator provides a benchmark of how much Americans could receive in the next round of stimulus reviews.
“I’m sure there will be changes to the bill before it is finally passed, but even if we have a general idea of what our lives will be like in the coming months, it can be helpful,” said Mah. “In precarious times, it is important to know if help will be available and when it’s on the way. ”
With the additional $ 600 a week in unemployment assistance due soon, many Americans are concerned about their financial future. However, if the $ 40,000 cap is passed, some experts also fear that the stimulus checks do not fulfill the mission of supporting those who are suffering most right now. Since the checks would likely be based on 2019 tax returns, they would miss many people who suffered a major economic hit between 2019 and 2020 and are struggling to survive.
What is also unclear for the next stimulus is the income-based elimination rules. Under the HEROES Act, the second stimulus check would be $ 1,200 if the income does not exceed $ 75,000 per year. Americans would receive a stimulus check of a lesser amount if their income is between $ 75,000 and $ 100,000. So far, McConnell has not shared details about possible new elimination rules if the next stimulus is capped at $ 40,000.
The Senate will discuss the next coronavirus relief package when it returns from its two-week recess on July 20. McConnell said they will work quickly to move forward with a new stimulus package before the congressional recess from August 10 to September 7.