President Joe Biden’sA third round of $ 1,400 incentive checks is proposed for most Americans. Analysts say that it may be several months until the economic consequences of the epidemic can help millions of families suffering.
The price tag for the relief package, called the American Rescue Plan, could face pushback from Republican lawmakers, who passed a $ 2 trillion bill opposing Democratic efforts last year. Heights Securities analyst Hunter Hammond expects the final package to be trimmed to $ 1 trillion, or 1.5 trillion. But most analysts believe lawmakers on both sides of the aisle will return $ 1,400 direct payments, which economists see as a lifeline for many cash-strapped workers who have lost their jobs or an epidemic. Have seen lower income during the period.
According to Ed Mills, an analyst at investment bank Raymond James, support for another stimulus package could lead to a number of developments that point to a widening of the economic crisis. A weak outlook for the labor market, with a larger-than-expectedAnalysts say that during the first week of January, as well as a record number of COVID-19 infections and deaths, may prompt lawmakers to support Mr. Biden’s plan for additional incentives.
Mills said in a report on 15 January, “The market is back with an expectation that more fiscal stimulus is unavoidable in the early days of the billion administration, while a $ 1.9 trillion ‘American Rescue Plan’ has been issued.” We speculate that there is a possibility of additional fiscal support, with time and scope in flows much higher. ‘
Analysts say the issues are prominent in whether Republican legislators will support the package, or if the Biden administration will eventually tackle its priorities by breaking spending proposals into two bills.
Janet Yellen, the choice of President Joe Biden as Treasury Secretary, said on January 19 that the incoming administration would focus on winning the quick passage of its $ 1.9 trillion pandemic relief plan. Yellen argued that additional incentives, including Mr. Biden’s proposal for a $ 15 minimum wage, were necessary to prevent economic “scorching caused by this epidemic”.
A plan to provide more direct assistance to lower and middle-class families could help raise GDP by 0.7%, although other measures in the bill – such as a higher minimum wage and aid to states – boost GDP growth by 1.5%. May 18, according to Gregory Dako, the leading American economist at Oxford Economics.
Analysts here predict about $ 1400 checks and other spending offers.
Is the $ 1,400 check a deal?
According to Wall Street and political analysts, very likely. Support is growing among Republican lawmakers for additional incentives directed toward low and middle-income households, with the latest attempt to pass a $ 2,000 stimulus check winning some Bipartisan support.
There is an 85% probability that the scale-down package will be passed in the first three months of 2021, Hight predicts with Hammond Securities. Due to ongoing support for additional direct assistance to families, the check is likely to be included in that small package.
“We believe there is support for a smaller package, including a $ 1,400 check, more health care funds, support for small businesses and some state and local assistance,” Mills said.
When will I receive a check for $ 1,400?
Goldman Sachs chief US political economist Alec Phillips thinks the package can be passed from mid-February to mid-March. After the relief bill is passed by Congress, it should be signed by the President. After that, the IRS will distribute the money via direct deposit, mailed checks and prepaid debit cards.
The possibility that the House would vote on Mr. Biden’s US rescue plan in the first week of February, according to Hight Securities Hammond in a January 22 research note.
In the first incentive payment in April 2020, which directed qualified adults, as well as $ 1,200 to $ 500 per child, payments typically take from two weeks to several months to reach people. The second round of checks, which sent $ 600 to each eligible adult and child, required about a week for the money to come through a direct deposit.
But in some cases people experiencedBecause of problems with their account information. President Biden will sign an order on January 22 To streamline the disbursement of incentive checks for those who have not yet received their direct payment.
Based on the payment of the previous stimulus money, and Congress passed a new relief bill by mid-February, the check could come into bank accounts by the end of February, although that would be a best-case scenario. If a package is passed by the end of March, people can receive their checks by the beginning of April.
The caveat is that the deadline is that at least 10 Republican senators support the package, allowing for 60 votes in the Senate to pass a potential filibuster and pass the bill, analysts noted. If the Biden administration cannot meet enough GOP support, incentive backers make it known as budget reconciliation. That parliamentary maneuver only requires a majority vote to become law, although it may delay passage.
Will more people qualify for the check?
Millions more Americans could qualify for a check after Mr. Biden’s plan was passed. One of their goals is to extend payments to adult dependents, who were excluded from the first two rounds of checks.
That exclusion meant college students who are claimed to be dependent on their parents’ taxes, as well as disabled adults, who were not eligible for the check. Because two previous relief investigations defined a child who was under 17, he also excluded high school students, who are 17 or 18 years old. Mr. Biden’s plan would also increase payments to older teens.
Do Americans Really Need Money?
Millions of families are facing a growing economic crisis as the epidemic continues to worsen, causing some businesses to lay off employees and work hours.
In December, fell to hiring around the US, Because the virus worked particularly hard on restaurants, bars and other service-related businesses. Number of Americans applying for weekly unemployed claims, also a proxy for layoffs last week .
Financial need is greatest among low-income households. Nearly half of households with incomes above $ 150,000 said they needed an incentive check for financial stability according to Credit Karma’s recent survey. A November survey found that around 6 out of 10 households are facing financial crisis.
Credit Karma’s Chief People Officer Coleen McCreery explained in the email that the additional incentive money “will be necessary for the financial stability of many Americans, including those with higher incomes.” “As the epidemic goes on, Americans are feeling the financial crisis.”
A new survey from Bankrate.com found that more than half of Americans said that a second incentive check of $ 600 per person would last them no more than a month. Most said they would use the money to pay house bills and day-to-day.
Overall, Mr. Biden’s incentive plan would be about $ 3,500 per house, according to Oxford Economics. Among other measures to support workers and help propel the economy, he wants to increase the increased unemployment benefit by $ 400 per week and called for the federal to increase.
The pay floor, now $ 7.25 per hour, has not been raised since 2009, although many states and cities around the US have raised the local minimum wage.
– Reporting from the Associated Press.