Republicans want to send another round of incentive checks to U.S. households to help them repair the economic impact of the coronavirus pandemic. The checks would be similar in size to the first round, but not as generous as the package proposed by Democrats in May.
Details of a potential second round of inspections emerged Monday as Senate Republicans outlined their fourth phase of a federal coronavirus response effort, which would include other incentives such as boosting unemployment benefits.
But the Republican proposal – the Health Care, Economic Aid, Responsibility and Schools Protection Act, or HEALTH ̵1; provides less money for children than a competitive stimulus bill from Democrats passed by the House in May.
Nevertheless, the Republican Incentive Package will provide households with almost equal benefits until the first round of inspections issued under the CARES Bipartisan Assistance Act, starting in April after its adoption in March. These checks helped buy finances for more than 160 million households, families paid bills or withdrew money for future emergencies.
According to the census, nearly half of all Americans reported a loss of income from March to early July, highlighting the financial stress that many households experience during a pandemic.
Another large-scale round of stimulus checks may even help the death economy recover this fall, Goldman Sachs analysts said in a client note earlier this month.
“We expect most of these payments to reach consumers in late August, which should boost consumption in September, in particular,” Goldman analysts said. “It is well documented that the $ 1,200 incentive payments had a significant impact on consumer spending at the beginning of the second quarter, especially for lower-income households.”
How much will you get for the GOP bill?
Here’s how the GOP incentive test proposal will work:
- All U.S. citizens and U.S. residents with adjusted gross income of up to $ 75,000 will receive $ 1,200, or similar to what was delivered in the first round of checks.
- As in the first round, couples will be eligible for $ 2,400 if their income is less than $ 150,000.
- To be eligible, you cannot claim dependence on another taxpayer, and you also need a social security number that meets the requirements of the job.
- As in the first round, benefits will be reduced for single people earning more than $ 75,000 and married people earning more than $ 150,000, with payments completely stopped for single earnings of more than $ 99,000 and married couples with incomes of more than $ 198,000. .
- Dependents, such as children, would receive $ 500 each.
How is the GOP bill different from the first round of inspections?
Answer: First of all by treating addicts.
Under the CARES Act, which allowed for the first incentive checks, children under the age of 17 were excluded from payments of $ 500. This meant that many juniors and seniors received nothing.
The CARES law also excluded “adult dependents” from $ 500, which meant that millions of college students and adults with disabilities who applied for dependents were not eligible for incentives.
But the Republican proposal makes it clear that college students and other adult dependents will be eligible for payments in the second round.
“Unlike the CARES Act, where an additional $ 500 was limited to taxpayers with a dependent child under the age of 17, an additional $ 500 will now be provided to taxpayers with dependents of all ages,” the proposal said Monday. Senate Finance Committee. Chairman Chuck Grassley, an Iowa Republican.
How is this different from the Democrats bill?
The rival Democrats’ proposal, the University Health and Economic Emergency Solutions, or the HEROES Act, is more generous than the GOP proposal.
Democrats would provide $ 1,200 for each household member – including dependents. In other words, instead of the $ 500 per child that families received in the first round of checks and that Republicans offer for the second round, families would receive $ 1,200 per child.
Here’s how it would be different for a family of married parents and two children with an income below $ 150,000.
- Under the Democrats bill, this family would receive $ 4,800 ($ 2,400 for parents and $ 1,200 each for their children.)
- Under the Republican bill, the same family received $ 3,400 ($ 2,400 for parents and $ 500 for each child.)
It also turns out that fewer immigrants will receive checks under the Republican bill against the Democrats bill, as the latter offers to send money to people who have a “taxpayer identification number” – a number that immigrants use to pay taxes – rather than a social security number. Both the first round of inspections and the last Republican proposal will require recipients of a social security number.
If you want to check how your family would move on the two proposals, you can check the incentive calculators from the Omni calculator.
Here is the calculator of the republican account.
And here is the calculator of the Democrat bill.
Will the GOP proposal be accepted?
Lawmakers and analysts say the Republican proposal may change, given the differences between the Verkhovna Rada bill and what the Democrats proposed in the May bill.
“This legislation serves as a starting point for bilateral talks,” Grassley said in a statement Monday.
Although incentive testing proposals aren’t all the same, Democrats and Republicans are far from other issues, such as additional unemployment benefits, and Republicans are proposing significant cuts to $ 600 in additional federal unemployment benefits that were paid this month.
The Republican plan “should be seen primarily as an introductory proposal in the negotiations, and not as a basis for the final bill,” – analysts wrote Height Securities in a note on the study. “There was little overlap between them.”
When could I get a second stimulus test?
With talks between Democrats and Republicans now under way, analysts expect the final stimulus package to be adopted in August.
It is possible that checks may arrive later in August, especially since the Treasury and the IRS have already sent about 160 million incentive checks in the first round, and their systems are likely to be designed to send second-round checks quickly.