Fourth stimulus check: What’s behind the pressure on recurring payments?

The IRS issued more than 169 million payments in the third round of direct stimulus aid, with more than two million people in July receiving $1,400 in checks. But some lawmakers are pushing for a fourth round of stimulus aid that would effectively send recurring payments until the pandemic is over.

So far, the federal response to the economic crisis caused by Corona virus pandemic Payment of $3,200 for eligible adults: $1,200 under the March 2020 Relief and Economic Security Act; $600 relief measure for December; and $1,400 under the US bailout signed by President Joe Biden in March.

Despite that financial assistance, millions of Americans still suffer financial hardship and spread delta variable It creates new economic headwinds. Almost a quarter of Americans struggled to pay household expenses in the previous week, according to new Census survey data that polled people during the last two weeks of August.

Unemployment rate standing at 5.2%, still above the pre-pandemic level of 3.5%. And while companies are hiring, there are still about 5.3 million more people on the payroll today than there were before the pandemic. Economists are citing concern about the spread of the delta variable, with Oxford Economics recently lowering its forecast for global economic growth in 2021 to 5.9% from 6.4%.

“Uncertainty and hesitation may eventually lead to a slower recovery from here than our baseline assumes,” Ben May, director of global macro research at Oxford Economics, wrote in the report.

At the same time, 9.1 million people have lost Promoting unemployment benefits on Labor DayWhen the federal benefits expire. That would eliminate about $5 billion in weekly benefits that were pouring into unemployed workers — the help that supported those workers with paying for groceries, rent and other necessities.

For many people, in short, the last round of $1,400 checks is long gone even as other pandemic incentives come to an end—a problem for now. the minds of many Americans who are still struggling with unemployment and a weak job market. In fact, more than 2.8 million people have signed the petition She began last year by calling for lawmakers to pass legislation to replicate the $2,000 monthly payments.

Some lawmakers picked up on the idea. Twenty-one senators – all Democrats. Signed the March 30th letter To Biden in support of his recurring stimulus payments, noting that the $1,400 being distributed by the IRS won’t change people for long.

“Nearly 6 in 10 people say the payments of $1,400 to be included in the rescue package will last for less than three months,” the senators wrote in the letter.

Many Americans are putting stimulus money into stocks…


Meanwhile, some countries Create their own form of stimulus check. About two-thirds of Californians are likely to qualify forGolden State StimulusCheck in with a new effort from Governor Gavin Newsom. This effort will save $600 to low- and middle-income residents who have filed their 2020 tax returns. Florida and parts of Texas have authorized bonuses for teachers to help offset the impact of the pandemic.

The letter from US senators does not specify the amount of payments they are seeking, but a separate effort from Democratic lawmakers in January Paid To get checks for $2,000 per month until the pandemic is over. Instead, the US bailout allowed $1,400 per eligible adult and dependent.

Child Tax Credit: July 15

Some families received another form of stimulus assistance on July 15 when the IRS Deposited the first monthly cash payment out of six In the bank accounts of parents who qualify for the CTC (Children Tax Credit). Families received an average of $423 in their first CTC payment, according to an analysis of census data from the left-leaning defense group the Economic Security Project.

Eligible families will receive up to $1,800 in cash through December, with the money distributed in equal installments over the six months from July to December. Aid goes to the Expanded Counterterrorism Committee, which is part of President Joe Biden’s US bailout plan.

Eligible families will receive $300 per month for each child under 6 and $250 for children ages 6 to 17. many families I spoke to CBS MoneyWatch She said the extra money will go to childcare, back-to-school supplies and other necessities.

Families may enjoy more tax breaks in the coming years, if Mr. Biden American Families Plan moves forward. Under this plan, the expansion of the child tax credit will continue through 2025, giving families an additional four years of larger child tax credits.

emergency and savings funds

So far, people who received the three rounds of stimulus payments said they use the most money to pay off debt or make money from savings, according to another Analytics From the Federal Reserve Bank of New York. This may indicate that people are using the money to reduce the debt they incurred during the pandemic as well as to build an emergency fund in the event of another shock.

Nearly 7 in 10 Americans who received, or thought they would soon, said the third payment is important to their money in the near term, She said in April. That’s down from about 8 in 10 people in March 2020, when the pandemic caused widespread unemployment, but overall the proportion of people who need additional support has remained high more than a year later, according to the personal finance company.

The survey found that about 1 in 3 people said a stimulus aid would help support them for less than one month.

Researchers have found that millions of Americans have escaped hardship from the three rounds of stimulus payments. But when stimulus faltered, as it did last fall when Congress hit a dead end over another round of aid, the hardships increased “significantly” in November and December, according to the may analysis From census data from the University of Michigan.

Still living from paycheck to paycheck

Some leading economists have called for more direct assistance to Americans. More than 150 economists, including former Obama administration economist Jason Furman, have signed the Message Last year he called for “recurring direct stimulus payments, continuing until the economy recovers.”

Nassif said that although the economy has improved, millions of people are still suffering from low incomes and have not been able to benefit from government aid programmes. Only 4 out of 10 unemployed workers actually received unemployment assistance, according to March study From economist Elisa Forsyth.

What’s on the COVID-19 Relief Bill?


Many people have never applied for unemployment benefits because they do not believe they qualify for it, while others have given up due to long waiting times and other issues.

“You’ll see reports of how the economy is starting to grow, but there are a lot of Americans living off their paychecks to pay their salaries, and for a lot of them government relief programs haven’t been able to help,” said Greg Nassif, Political Director of Humanity Forward.

How likely is the IV stimulus scan?

Don’t hold your breath, according to Wall Street analysts. “I think it’s unlikely at this time,” Raymond James analyst Ed Mills told CNBC. One reason is that the Biden administration is focused on advancing it infrastructure plan, which would reshape the economy by rebuilding aging schools, roads and airports, as well as investing in projects ranging from affordable housing to broadband.

Stifel’s Brian Gardner said in a research note on August 11 that the proposal, which the White House says will be funded by increasing the corporate tax rate from 21% to 28%, is likely to consume lawmakers this fall.

He noted, “Fall is shaping up to be a busy time in Washington as Congress attempts to finalize two infrastructure bills (one of which includes tax increases), approve annual spending bills, and raise the debt ceiling.

Delta headwinds?

At the same time, the economic recovery faces headwinds as the delta variable spreads across the country. Some countries are low Vaccination rates Seeing a rise in cases of COVID-19 that can discourage people from taking service jobs in restaurants and other jobs that involve exposure to the public.

Texas’ failure to stem the spread of COVID-19 has resulted in its state Nearly 72,000 jobs lost A recent study found that there is an annual production decline of more than $13 billion. The study noted that fear of contracting COVID-19 also leads to job losses in Texas as workers choose to stay home or must stay home to care for sick family members.

Meanwhile, the federal pandemic unemployment benefit expired on September 6, marking the end of innovative programs that expanded unemployment assistance for temporary workers, part-time workers and others who do not qualify for unemployment benefits. Experts say this could add to the suffering of many families.

“This downturn threatens our progress in economic recovery by draining the consumer spending economy, and will put millions of workers at risk of lasting suffering,” Andrew Stettner, senior fellow at the Century Foundation, said in a statement.


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