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Fueled by a 14.7% unemployment rate in April, House Speaker Nancy Pelosi and her Democratic colleagues introduced a second $ 3 trillion coronavirus rescue bill on Tuesday, which, if adopted, would include a second direct payment to the Americans as well as a relief for businesses and the unemployed, testing fees for the US postal service and coronaviruses (you can see the invoice here). The relief bill comes in while the IRS is stillup to $ 1,200 per person to tens of millions of Americans for the first COVID-19 economic stimulus package, .
Those, being to banks and , were introduced as part of a one-time payment to help curb the financial blow caused by the outbreak of .
Now the bill to send a second tranche of stimulus checks in 2020 is motivated by 3 million new jobless claims last week, adding to more than 36 million people.since mid-March and the country that economists globally predict may be the worst since the Great Depression.
In recent days, the idea for this bill has gone from a handful of forward-looking conversations to a bill. Here’s what we know about a second round of stimulus payments in 2020 for individuals. This story is frequently updated in the light of new information and is intended to provide an overview of the situation.
Recap: the first stimulus package against coronaviruses
In an effort to mitigate the financial effects of the coronavirus epidemic, President Donald Trump signed legislation in March(technically a relief program) which included payments of up to $ 1,200 to eligible US taxpayers and $ 500 for each child 16 and under. The IRS began sending checks in mid-April and by the beginning of May had made more than 130 million payments. The deployment was bumpy, with to help you register and their checks.
How much would the Coronavirus Stimulation Bill give individuals if it were passed?
The current bill – which Democrats call the HEROES law, according to a House of Commons fact sheet – includes a wide range of benefits, including a second direct payment to individuals and households. It is suggested that the second bill, if signed, would provide a cash infusion of up to $ 1,200 per family member, with a cap of $ 6,000 per household.
In addition, it would postpone the current enhanced unemployment benefit by $ 600 per week (in addition to the typical unemployment benefit) until January 2021.
The argument for a new round of stimulus checks
The bill is “a bold response to the coronavirus pandemic and the economic collapse,” according to the House’s fact sheet. The financial support aims to ” [cushion] the economic blow of the coronavirus crisis. “
The objective of a second stimulus check by the IRS is in part “to put much-needed money in the pockets of the American people,” House Speaker Nancy Pelosi said in a statement. You can watch Pelosi, a Democrat from California, talk about the legislation here.
Since mid-March, more than 33 million American workers who have lost their jobs have filed for unemployment. The real number of unemployed since governors and mayors have locked their states and cities to stop the spread of coronavirus is probably higher – perhaps millions more – because many of those eligible have not filed of unemployment request. With job losses, the country’s unemployment rate reached 14.7%. Newly unemployed workers, as well as others who have suffered an economic blow from the pandemic, may benefit from having more money to spend now.
The argument against a second wave of relief payments
Some in Washington, including the majority in the Senate, Mitch McConnell, wonder if the relief measures have met their objectives and want to pull the brakes before approving more federal spending to assess the effects of the already approved relief plans . McConnell and others are also concerned about how additional stimulus packages will increase the historic federal deficit.
“So let me say the obvious,” John Barasso, a Republican senator from Wyoming, tweeted Tuesday. “What Nancy Pelosi proposes will never be adopted by the Senate. “
Because this payment is available in addition to regular unemployment benefits and improved unemployment benefits of $ 600 per week, some critics have said that it would be more difficult to reduce unemployment in advance if people did not feel encouraged to return to work. The initial relief measure also provides a 15% increase in federal food aid under the Supplementary Nutrition Assistance Program.
What was included in previous proposals for a second round of economic stimulus payments
Instead of a one-time payment, some in Washington have argued that a more effective way to help struggling US taxpayers and stimulate the economy could be to reduce payroll taxes which would allow workers to keep more part of their money with every paycheck.
President Trump had supported this approach to put more dollars in the hands of taxpayers. “I want to see a reduction in payroll taxes,” he said at a town hall virtual meeting earlier this month. “We don’t do anything unless we get reduced payroll taxes. “
According to some economists, a drop in the wage bill could help those who have a job, but would not benefit anyone already unemployed and without salary.
Others in Washington were considering broader, longer-term approaches to help those affected by the economic coronavirus crisis. Members of Congress Ro Khanna and Tim Ryan, for example, offered to give many US residents $ 2,000 a month for at least six months to see their households during the crisis. Senator Mitt Romney proposed a similar plan for $ 1,000 a month, and Senator Josh Hawley supported monthly payments to families with children.
From a longer perspective, the Senses. Kamala Harris, Ed Markey and Bernie Sanders have introduced legislation that would provide a monthly check for $ 2,000 until three months after the pandemic ends. Representatives Rashida Tlaib and Pramila Jayapal offered to extend payments for a year after the crisis ends.
What will happen next
The House is expected to meet in Washington on Friday to vote on the bill, although “negotiations with Senate Republicans are not expected to begin before the end of this month,” according to the Wall Street Journal. It is widely believed that Republicans will reject the bill.
While the future of a second stimulus bill remains unclear, we would like to share the resources available on, , and and how .
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