The IRS has paid 156 million payments in the third round of direct stimulation assistance, with 25 million people expected to receive a $ 1,400 check this week. However, some lawmakers are pushing for a fourth round of stimulus aid that will effectively send regular payments until the end of the pandemic.
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 program signed by President Joe Biden in March.
Despite its financial support, millions of Americans are still in financial difficulty, with four in ten earning below pre-pandemic levels, according to a recent study by financial services firm TransUnion. It states that there is. Unemployment is still rising, especially in low-wage industries such as the food service industry and hospitality, where demand is still lagging amid rising coronavirus outbreaks.
In short, for many, the latest $ 1,400 check may not last long — the problem isPeople who continue to suffer from unemployment and a weak labor market.
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 will not keep people bored for a long time.
“Nearly six out of ten say that the $ 1,400 payment set to be included in the rescue package will last less than three months,” the senator wrote in a letter.
The letter does not specify the amount of payment the senator is seeking, but an effort separate from the January DemocratsYou will need a $ 2,000 check each month until the pandemic is over. Instead, the American Rescue Plan approved $ 1,400 per eligible adult and dependent.
From salary still alive to salary
Some top economists are seeking more direct help from 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 measures that will 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 aid programs, said Greg Nasif, political director of Humanity Forward. According to the report, only 4 out of 10 unemployed workers actually received unemployment assistance.
Many did not apply for unemployment benefits because they did not think they were eligible, but others may have given up due to long waiting times or other issues.
“You’ll see reports on how the economy is starting to grow, but there are many Americans who live on salaries, and for many of them the government bailout program couldn’t help. “Nashif said.
How likely is the fourth stimulus check?
Don’t hold your breath, according to Wall Street analysts. “I don’t think it’s likely at this point,” Raymond James analyst Ed Mills told CNBC.One reason is that the Biden administration is focusing 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 the corporate tax rate from 21% to 28% has provided most Americans with a $ 1,400 check for opposition from both Republicans and Republicans. May be “difficult to pass” than the bill Some Democrats pointed out last month that Stiffel’s Washington policy strategist Brian Gardner.
Families with children under the age of 18 receive direct payments for six months through a revised child tax deduction This summer, many households receive additional forms of stimulus assistance. From July to December, families with children under the age of 6 receive $ 300 per month, and families with children between the ages of 6 and 17 receive $ 250 per child per month.
“Many people will be surprised when the first check arrives,” Nasif said. “It will obviously add to the surge in check popularity.”
At the same time, the economy is expected to recover this year due to higher COVID-19 vaccination rates and the reopening of the state. JPMorgan Chase CEO Jamie Dimon is an annual letter To our shareholders this week ..
“”[W]i-th excess savings, new stimulus savings, huge deficit spending, etc. [quantitative easing by the Federal Reserve], New potential infrastructure bills, successful vaccines and euphoria towards the end of the pandemic, the US economy will probably be booming. This boom can easily occur by 2023, as all spending could grow well by 2023, “Dimon wrote in a letter released Wednesday.
This can weaken the reason for the government to provide more direct assistance, especially when the unemployment rate recovers and more workers are out of the bystander.
By the end of the year, the country’s unemployment rate could drop to 4.3%, according to Oxford Economics. Still, Oxford economists Oren Crackin and Gregory Dako said in a study note that the road to recovery remains “long” as there are still 4 million workers out of the workforce.
“Looking into the future, the labor market is making a remarkable move as vaccine distribution, increased resumptions and fiscal stimulus are driving employment spikes,” they predict.
Fourth stimulus check: why some lawmakers want more stimulus
Source link Fourth stimulus check: why some lawmakers want more stimulus