$1,400 New Stimulus Check
President-elect Joe Biden presented the American Rescue Plan on January 14th. The America Rescue Plan, according to Biden, is a $1.9 trillion dollar stimulus bill. This will also happen to include the third stimulus check. When unveiling his plan, he stated, “Six hundred dollars is simply not enough if you still have to choose between paying rent and putting food on the table.” He then went on to mention, “Even for those who have kept their jobs, these checks are really important.” Many have proposed that they would be receiving a stimulus check of $1,400 dollars along with the $600 dollars that was said to be given to many Americans. When added together, Americans would get $2,000 worth of stimulus money.
It is said that qualifying individuals may receive up to $1,400 and some qualifying couples could potentially receive a total of $2,800 if they file a joint tax return. There are some Republican senators who have said that they are in support of that $2,000 stimulus check, however there are also others who say that the bill is way too large. In addition to this, many economists have come out and said that Biden’s recovery plan is the least effective way to pick up the economy. Biden is awaiting the approval of a minimum of 10 Republicans and a brimming assembly of Democrats in order for this to be passed. It is said that we may not be receiving these stimulus checks until late February due to Biden needing the approval of a majority of the Republican and Democratic parties. As of right now, he has the support of a thin amount of the Democratic party. Once he gets the approval from the U.S., The Department of Treasury could begin to pass out the checks in a span of days. Ever since the distribution of the first stimulus check, they have vastly increased their processing speeds.
According to a handful of economists, the stimulus money would not be going to the right people. In other words, it wouldn’t be helping those who need it the most. They also argue that the stimulus money will not help out economic activity due to the fact that a lot of people will not actually spend the money. Instead, most will likely put it into their savings account or use it in order to pay off their debts.
Now, how would this $1.9 trillion dollar plan be distributed? As stated by many news sources, an estimated $400 billion would go to trying to fight this pandemic. $20 billion would go to focusing on vaccinations and the rest is planned to help with economic aid, helping a vast majority of states in things such as the opening of schools.
Many individuals question who is eligible to receive this stimulus check. According to many financial analysts, those who are single taxpayers will be eligible to receive it as long as their income consists of $75 thousand dollars or less. As for married couples, $150 thousand or less will allow eligibility and anything over those amounts will get cut out. For those who haven’t received their second stimulus check, economists urge people to file a 2020 tax return and claim it as a recovery rebate which will then lead to it being a refundable credit.