The IRS has paid nearly 167 million for the third round of direct stimulus, with an additional 1.8 million people expected to receive a $ 1,400 check this week. However, some lawmakers are calling for a fourth incentive to effectively continue to pay until the end of the pandemic.
So far, the response to the economic crisis caused by the federal government has beenThe Coronavirus Relief and Economic Security Act of March 2020 provided $ 1,200 for $ 3,200 per eligible adult. $ 600 for December bailouts. And $ 1,400 based on the US relief program signed by President Joe Biden in March.
Despite such financial support, millions of Americans are still in financial difficulty, with four in ten earning below pre-pandemic levels, according to a study by financial services firm Transunion. Saying that.
Nearly 16 million people across the country are somehow backed by the unemployed.Unemployment rate analysis This is a collection of census data from the beginning of May.Much higher than the pre-pandemic 3.5%, unemployment remains high, especially in low-wage industries such as food services and hospitality. According to the Center for Budget and Policy Priority, one in four Americans struggled to pay their households last week.
So for many, the latest round of a $ 1,400 check may not last long. Change.org petition It requires lawmakers to pass a $ 2,000 monthly recurring payment law that began last year.People suffering from unemployment and a weak labor market. In fact, over 2.2 million people have signed it.
Some lawmakers have adopted this idea. 21 Senators-All Democrats- Signed the letter on March 30 He pointed out that the $ 1,400 payment distributed by the IRS would not last long and reported to Mr Biden in support of regular stimulus payments.
“Nearly six out of ten people will pay $ 1,400 in the rescue package for less than three months,” the senator said in a letter.
Meanwhile, millions of Californians send Based on the multi-billion dollar spending plan he introduced earlier this month, state residents were given a $ 600 incentive, and about two-thirds of Californians paid the incentive at his suggestion. May be received.Due to a new initiative by Governor Gavin Newsom.His plan is
A letter from the U.S. Senator does not specify the amount of payment they are seeking, but another initiative by Democrats in JanuaryA $ 2,000 check every month until the end of the pandemic. Instead, the American Rescue Plan approved $ 1,400 for each eligible adult and dependent.
According to a recent study, so far, people who have been paid for three stimuli have said that most of their money is spent on debt repayments and savings. analysis From the Federal Reserve Bank of New York. This may indicate that people are spending their money to reduce the debt they owe during the pandemic and build emergency funds in case of another shock.
Still, many say they intend to spend their stimulus funds on the basics — food and housing costs were listed as the top two uses for the third stimulus check after savings. February poll From Bloomberg / Morning Consult.
Nearly seven in ten Americans who have received or expect to receive a third payment say that the third payment is important for short-term finances. Bankrate.com Said During April. Although the number of unemployed people fell from eight to ten when the March 2020 pandemic spread, the proportion of people in need of additional assistance still rises after more than a year, according to personal finance companies. continuing.
According to the survey, about 1 in 3 people say that stimulus aid helps less than a month.
Living from salary 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 repeated “payment of direct stimulus that continues until the economy recovers.”
The economy is improving, Study in March From economist Eliza Forsythe.The politics of Humanity Forward, a non-profit organization that promotes regular stimulus payments, as millions of people continue to suffer from reduced incomes and lack access to government aid programs. Director Greg Nasif said. According to one survey, only 4 out of 10 unemployed people actually received unemployment benefits.
Some may have never applied for unemployment benefits because they thought they were not eligible, while others may have given up because of long wait times or other issues.
“You’ll see reports of how the economy is starting to grow, but many Americans live to pay their salaries, and for many Americans, government bailout programs can help. I didn’t, “said Nasif.
What is the possibility of a fourth stimulus check?
Don’t hold your breath, according to Wall Street analysts.Raymond James analyst Ed Mills told CNBC “it’s unlikely at this point,” partly because of the Biden administration.This will rebuild the economy by rebuilding dilapidated schools, roads and airports and investing in projects ranging from affordable housing to broadband.
The White House says it can raise money by raising the corporate tax rate from 21% to 28%, but more than a bailout bill that provided most Americans with a $ 1,400 check due to Republican and Republican opposition. It may be difficult to get through. Some Democrats pointed out that Stifel’s chief policy strategist in Washington, Brian Gardner.
Even so, only about one-third believe that American rescue plans are of great help to them. Poll from Politico HarvardThis shows that some households feel they need more help to survive the coming months.
Families with children under the age of 18 will be able to receive direct payments for six months through the revised child tax credit, and many households will receive some form of additional incentive this summer. 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,” said Nasif. “It will obviously spur the growing popularity of checks.”
If Biden becomes president, his family could enjoy even more tax cuts in the coming yearsMove forward. Under that plan, the expansion of child tax credits will continue until 2025, giving families greater tax cuts for their children for an additional four years.
At the same time, rising COVID-19 vaccination rates and the reopening of the state are expected to help the economy recover this year. JPMorgan Chase CEO Jamie Dimon predicted in his latest year letter Prosperity for shareholders ..
“[W]Excessive savings, savings from new stimuli, huge deficit spending, etc. [quantitative easing by the Federal Reserve]The US economy will probably be booming, with new potential infrastructure bills, successful vaccines, and euphoria towards the end of the pandemic. This boom could easily take place in 2023, as all spending could last until 2023, “Dimon wrote in a letter on April 7.
This could reduce the reason the government provides more direct assistance, especially as unemployment recovers and more workers move away from bystanders.
By the end of the year, the country’s unemployment rate could drop to 4.3%, according to Oxford Economics. Even so, four million workers are unemployed and the road to recovery is “long”, Oxford economists Oren Clarkkin and Gregory Dako pointed out in a study note.
They predict that the labor market is poised to make impressive moves in the future, as increased vaccine distribution, reopening and fiscal stimulus will drive employment spikes.
Latest Stimulation Check: What Behind the Promotion of Recurring Payments
Source link Latest Stimulation Check: What Behind the Promotion of Recurring Payments