The IRS made about 165 million payments during the third round of direct stimulation assistance, and an additional 1 million people are expected to receive a check for $ 1,400 this week. However, some lawmakers are pushing for a fourth round of stimulus aid that will effectively send regular payments until the pandemic is over.
So far, the federal government’s response to the economic crisis caused byWe provided $ 3,200 to each eligible adult. $ 1,200 under the Coronavirus Aid Relief and Economic Security Act of March 2020. $ 600 for December bailouts. $ 1,400 based on the US rescue package signed by President Joe Biden in March.
Despite its financial support, millions of Americans are still struggling financially, with four in ten of their incomes below pre-pandemic levels, according to a study by financial services company TransUnion. He says there are. Unemployment continues to rise, especially in low-wage sectors such as the restaurant and hospitality industry, where demand still lags in the face of increasing coronavirus outbreaks. The Kaiser Family Foundation has found that one in three Americans struggled to meet basic living expenses in the past three months. In a February poll..
In short, for many, the last check for $ 1,400 may not last long – the problem is Change.org petition As of last year, the legislator is calling for a bill to adopt a monthly recurring payment bill of $ 2,000.People who continue to suffer from unemployment and a weak labor market. As of Wednesday, nearly 2.2 million people signed
Some lawmakers have embraced this idea. 21 senators – All Democrats – Signed the letter on March 30 He pointed out to Biden, who favors regular stimulus payments, that the $ 1,400 payment distributed by the IRS isn’t going to bother people for long.
“Almost six in ten say the $ 1,400 payment that will be included in the bailout will last less than three months,” the senator wrote in a letter.
Meanwhile, millions of Californians To send Residents of the state have a $ 600 stimulus check under the multibillion-dollar spending plan he presented this week, and about two-thirds of Californians may have received a stimulus under his suggestion. there is.With a new effort from Governor Gavin Newsom, his plan is
Letter from the US Senator does not specify the amount of payment they are asking for, but another effort by Democrats in JanuaryYou will need a check for $ 2,000 each month until the pandemic is over. Instead, the American Rescue Plan approved $ 1,400 per eligible adult and dependent.
So far, those who have received three rounds of incentives have said they spend most of their money on debt or saving money. New analysis From the Federal Reserve Bank of New York. This may indicate that people are using this money to reduce debt incurred during the pandemic and to build emergency funds in the event of another shock. ..
Still, many said they basically plan to spend stimulus funds – the costs of food and shelter were cited as the top two uses for the third stimulus check after savings. It was. February poll From Bloomberg / Morning Consult.
Seven in ten Americans who have received or expect to receive a third payment say it is important for short-term finances. Bankrate.com Mentionned last month. Overall, the proportion of people needing additional assistance has been over a year, although the pandemic has risen from around eight to ten in March 2020, causing widespread unemployment, according to personal finance companies. But it’s going up.
According to a survey, one in three people have found that stimulation assistance helps within a month.
From salary still alive to salary
Some senior economists seek more direct help from the Americans Signed by more than 150 economists, including former Obama administration economist Jason Furman letter Last year he insisted on “repeated payments of direct stimulus that would continue until the economy recovers.”
The economy is improving, March study From economist Eliza Forsythe.“Millions of people continue to suffer from reduced incomes and are unable to take advantage of government assistance programs,” said Greg Nasif, political director of Humanity Forward. According to the report, only 4 out of 10 unemployed actually benefited from unemployment assistance.
Many did not apply for unemployment benefits because they did not think they would qualify, but others may have given up due to long wait times or other issues.
“You’ll see reports of how the economy is starting to grow, but there are a lot of Americans who live on wages, and for many of them the government’s bailout program couldn’t help. “Nashif said.
What is the probability of the fourth stimulation test?
Don’t hold your breath, according to Wall Street analysts. “I don’t think it’s likely at this point,” Raymond analyst James Ed Mills told CNBC. One of the reasons is that the Biden administration is focused on its progress.Reshape the economy by rebuilding dilapidated schools, roads and airports, and investing in projects ranging from affordable housing to broadband.
The White House’s proposal to raise corporate tax rates from 21% to 28% provided most Americans with a check for $ 1,400 for opposition Republicans and Republicans. Perhaps “hard to pass” is the bill that some Democrats pointed to last month, Stiffel Washington political strategist Brian Gardner.
Yet only about a third of Americans think the US bailout program will help them much. New Politico-Harvard poll.. This suggests that some households feel they need more help to survive in the months to come.
This summer, many households will receive an inspiring form of extra help when families with children under the age of 18 receive direct payments for six months through a revised child tax credit. From July to December, families with children under 6 receive $ 300 per month, and families with children aged 6 to 17 receive $ 250 per child per month.
“A lot of people will be surprised when the first check arrives,” Nasif said. “This will obviously join the skyrocketing popularity of checks.”
In Mr Biden’s case, the family could benefit from more tax cuts in the years to comeAdvanced. As part of this plan, the expansion of child tax credits will continue until 2025, giving families a larger tax credit for another four years for their children.
At the same time, the economy is expected to recover this year due to rising COVID-19 vaccination rates and the reopening of the state. Jamie Dimon, CEO of JPMorgan Chase, predicted in his latest annual report letter To the shareholders of the economic cycle ..
“”[W]Excess e-savings, new stimulus savings, huge deficit spending, etc. [quantitative easing by the Federal Reserve]Potential new infrastructure bills, successful vaccines and euphoria as the pandemic ends, the US economy is likely to be booming. This boom can easily happen by 2023, as all spending could well increase by 2023, ”Dimon wrote in an April 7 letter.
This may weaken the reason the government provides more direct aid, especially when the unemployment rate recovers and more workers are left behind.
By the end of the year, the country’s unemployment rate could drop to 4.3%, according to Oxford Economics. Yet with 4 million workers in the labor market, the road to recovery remains “long,” Oxford economists Oren Klachkin and Gregory Daco said in a study note.
“Looking to the future, the labor market is making a remarkable move as the distribution of vaccines, the increase in recoveries and the fiscal stimulus are causing employment spikes,” they predict.
Last Stimulus Check: What’s Behind the Promotion of Monthly Recurring Payments?
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