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Thosebe at banks and , were introduced as part of a one-time payment to contain the financial shock caused by the outbreak .
Now, the proposed legislation to send a second tranche of short-term audits in 2020 will be fueled by 3 million new jobless claims last week, contributing to the more than 36 million peoplesince mid-March and the country That economists predict worldwide could be the worst since the Great Depression.
In the past few days, the idea of this law has evolved from a handful of future-oriented discussions to legislative proposals. Here’s what we know about a second round of stimulus payments in 2020 for individuals. This story is updated frequently in view of new information and is intended to provide an overview of the situation.
Review: the first coronavirus stimulus package
To mitigate the financial impact of the coronavirus outbreak, President Donald Trump signed a law in March(technically, an aid package) that included payments of up to $ 1,200 to eligible US taxpayers and $ 500 for each child aged 16 or younger. The IRS began sending checks in mid-April and had made more than 130 million payments by early May. The rollout was bumpy with to help sign up for and their checks.
How much would the proposed coronavirus stimulus bill give to individuals if passed?
The currently proposed bill, which Democrats call the HEROES Act, according to a House Appropriations Committee fact sheet, encompasses a wide range of benefits, including a second direct payment to individuals and households. The second bill, if signed by law, is proposed to provide up to $ 1,200 in cash per family member with an upper limit of $ 6,000 per household.
In addition, the currently increased unemployment benefit of $ 600 per week (in addition to the typical unemployment benefit) would be carried over to January 2021.
The argument for another round of stimulus tests
The proposed legislation is a self-described “brave response to the coronavirus pandemic and economic collapse,” the company’s fact sheet said. The financial support should “[cushion] the economic blow of the coronavirus crisis. ”
The goal of a second IRS stimulus check is, in part, “to put much-needed money in the pockets of the American people,” House spokeswoman Nancy Pelosi said in a recorded statement. You can see Pelosi, a California Democrat, talking about the legislation here.
Since mid-March, more than 33 million US workers who have lost their jobs have registered unemployment. The actual number of unemployed since governors and mayors blocked their states and cities to stop the spread of the corona virus is likely to be higher – perhaps millions more – because many eligible people have not applied for unemployment. With the loss of jobs, the country’s unemployment rate reached 14.7%. The new unemployed, along with others who are economically affected by the pandemic, could benefit from being able to spend more money now.
The argument against a second wave of aid payments
Some in Washington, including Senate majority leader Mitch McConnell, are asking whether the relief efforts have achieved their goals and want to apply the brakes before further federal spending is approved to assess the impact of the aid packages that have already been approved. McConnell and others are also concerned about how additional stimulus packages will increase the historic federal deficit.
“Let me say the obvious,” said John Barasso, a Wyoming Republican senator. tweeted on Tuesday. “What Nancy Pelosi proposes will never pass the Senate.”
As this payment is available in addition to regular unemployment benefits and an increased unemployment benefit of $ 600 a week, some critics have stated that it will be harder to lower unemployment in advance if people don’t feel motivated to return to work. The original relief measure also provides for a 15% increase in federal food aid as part of the Supplemental Nutrition Assistance Program.
What the previous proposals for a second round of stimulus packages included
Instead of a one-time payment, some in Washington had argued that a more effective way to support struggling US taxpayers and boost the economy could be through payroll tax cuts that would allow workers to keep more of their money with every paycheck .
President Trump had thrown his support behind this approach to get more dollars into the hands of taxpayers. “I want to see a wage tax cut,” he said earlier this month at a virtual town hall meeting. “We don’t do anything unless we get a tax cut.”
A cut in wages tax could help workers, but would not benefit anyone who is already unemployed and without a paycheck, some economists say.
Others in Washington have looked at broader, long-term approaches to help those affected by the Corona Virus economic crisis. Congresswoman Ro Khanna and Tim RyanFor example, suggested giving many US citizens $ 2,000 a month for at least six months to help their households get through the crisis. Senator Mitt Romney proposed a similar plan for $ 1,000 a month, and Senator Josh Hawley supported monthly payments to families with children.
Sens. Kamala Harris, Ed Markey and Bernie Sanders introduced laws that required a $ 2,000 monthly check until three months after the pandemic ended. Representatives Rashida Tlaib and Pramila Jayapal proposed to extend payments one year after the crisis ended.
What will happen next
The house is expected to meet in Washington on Friday to vote on the bill, although “negotiations with the Senate Republicans are not expected to begin before the end of this month,” the Wall Street Journal said. It is widely believed that the Republicans will act against the bill.
While the future of a second stimulus package is still undecided, we want to share the available resources about it, , and and how .