After weeks (and even months) of questions, whispering, statements, and more, we finally have confirmation that there will be a second stimulus bill. Here is what has been said that the proposal would mean for American families, many of whom have been hurt by layoffs during the coronavirus.
The NEW Stimulus Package – How Much Should You Get?
Update July 25 – While stimulus checks are in the proposal to be introduced next week, it appears that the Treasury Secretary may have jumped the gun a bit as there has not been confirmation from Republicans on amounts or cap yet. Will update with more information as it comes. But, that does not mean this would be wrong – it would be the simplest way (and possibly most cost-effective since it would essentially be a repeat) of how to get money to Americans.
A Look at the Proposal for the New Stimulus Package
While there was a House proposal (by the Democrats) last month for a second stimulus package, the Senate Republicans had said it was too much money (a 50% increase from the $2 Trillion dollar CARES package in April). President Trump had said he wanted a big package for American families and Senate Majority Leader McConnell had said that he wanted to limit the income level to $40,000 for the stimulus payout.
Well, today, Treasury Secretary Mnuchin confirmed that there will be a new stimulus package and that the Republican proposal would be exactly the same as the first stimulus bill in March/April. He said, it will be the “exact same proposal as last time” so this shows us what we are looking at from the White House and the Republican-controlled Senate when they introduce the proposal later today.
From the Democrats, they had not wanted a lower cap ($40,000 down from the original $75,000) and they had not waited the payroll taxes rolled back. Well, the Republicans have said that the $75,000 cap originally is what they are going for and the payroll taxes were not brought up. So, as far as stimulus checks for American families, this should be locked in.
The rest of the stimulus package will be about businesses, unemployment benefits, and more. But, based on what we have learned today, it appears that the new stimulus package will be the same as the last one for individuals and families.
How Much Will This Stimulus Package Be for Individuals?
It should be the $1,200 for an adult, $2,400 for a couple filing jointly. For each child under the age of 17 that is a dependent, the family would receive $500 with no cap on that amount.
It appears that this may leave out the many people who are 17 and older that are dependents of their parents since they won’t be able to claim the $1,200 on their own (since they are claimed as dependents). Hopefully, there will be some movement on this.
The income roll-off would start at $75,000 of adjusted gross income for an individual and $150,000 for a couple filing jointly. It would roll off from the full amount over those income levels until it would drop out completely at $99,000 for an individual or $198,000 for a couple.
When Would This Stimulus Money Go Out?
Since the US government has already been through this once, this time, payments should go out even faster. Plus, I wouldn’t be surprised if even more people received the money via direct deposit this time as people now know what to expect as well.
Here is the same calculator from the first stimulus package to show you what you should be able to expect from the second stimulus package, since it is likely that this proposal would turn into something signed by President Trump.
There will forever be arguments from many as to whether this is even needed or not. The truth is that we are living in very different times and I think many governments around the world are trying to do what they can to make sure their countries survive through this situation. Hopefully, this money that goes out would get put back into the American economy to help those businesses that are striving to survive.
At least for those of us who like to travel, with most countries around the world closed to American tourists, any travel money that would be spent out of this would likely be spent right in the USA. Come to think of it, the Treasury Secretary said that tourism for Americans this year would be domestic – it looks like he called it and that this money will go right back into the US economy.