Biden administration continues to push for stimulus checks

Image source: Getty Images

The president still wants to see those $1,400 checks go to the public.

President Joe Biden has pledged to provide relief during the pandemic. He has already signed a number of executive orders targeting food benefits and unemployment rights. And he of course continues to push his $1.9 trillion relief proposal, known as the US Bailout Package, which includes improved unemployment benefits and a series of $1,400 stimulus checks.

Americans have already been privy to two rounds of stimulus. The first, under the CARES Act, was worth up to $1,200 per eligible beneficiary. The second round, however, was more miserly, coming in at just $600. Since many Americans have depleted their savings and racked up dozens of debts just to stay afloat, Biden wants those $1,400 checks issued quickly. But he still needs buy-in from lawmakers for that to happen, and some have made it clear they feel Biden’s aid isn’t targeted enough.

Will $1,400 checks go to the rich?

There are fears that a new round of $1,400 stimulus checks could land in the pockets of many who don’t need them. In fact, if the phase-out system applied to stimulus payments in the past is used for this next cycle, families earning $300,000 a year could be eligible for stimulus checks.

Obviously, that’s not ideal, because stimulus checks are supposed to help those in trouble, and it’s fair to say that the typical household earning $300,000 is in decent shape. The problem, of course, is that setting up new stimulus eligibility parameters is not only tedious, but could also lead to a massive delay in getting those payments.

Earlier in the week, a bipartisan group of senators expressed concern that Biden’s relief plan is not focused enough. Some lawmakers, in fact, are calling for a follow-up stimulus round to cater only to the unemployed. But technically, even this step won’t necessarily exclude households earning $300,000 a year, or somewhere in that vicinity. Example: It is more than possible for a given household to have one person earning $300,000 and another person laid off and eligible for unemployment benefits.

One solution could be to implement a permanent cut for stimulus eligibility rather than working with the phasing out limits that have applied for the previous two stimulus rounds. In other words, lawmakers could rule that single filers earning over $75,000 and married couples filing joint returns earning over $150,000 will get no incentive, as opposed to partial payment as they would have been. eligible in the past. Or, it is possible to simply completely lower the income thresholds for stimulus payments so that, for example, only single filers earning $50,000 or less and married filers earning $100,000 or less get this money.

There are a number of different combinations to play with, but the problem is that the more lawmakers try to solve the problem of targeted aid, the more those $1,400 checks are likely to be delayed. And given how many people desperately need that money, that’s not a good thing at all.

The best credit card erases interest until 2023

If you have credit card debt, transfer it to this top balance transfer card guarantees you an introductory APR of 0% in 2023! Plus, you won’t pay any annual fees. These are just a few of the reasons why our experts consider this card a top choice to help you control your debt. Read the full The Ascent review for free and apply in just 2 minutes.

Comments are closed.