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While lawmakers in Washington are working to reach agreement on a new coronavirus emergency package, a key question has emerged: Will the next stimulus check be $ 1,400?
President Joe Biden tried to end this debate at a news conference on Friday by reaffirming his commitment to $ 1,400.
“I’m not cutting the size of the checks,” Biden said. “They’re going to be $ 1,400. Dot.
“That’s what the American people were promised.”
The president also said payments should be targeted so that “people earning $ 300,000 do not get anything unexpected.”
The additional direct payments are part of Biden’s $ 1.9 trillion emergency plan for coronavirus.
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The amounts of $ 1,400 would go to individuals as well as children and adults, based on certain income limits. If the same criteria are used as for the first two rounds of checks, individuals earning up to $ 75,000 and married couples earning up to $ 150,000 will see full payments.
Stimulation control is very popular among the American public. ONE latest poll from Quinnipiac University found that 78% of Americans are in favor of $ 1,400 checks, compared to 68% who support Biden’s total $ 1.9 trillion package.
A group of 10 Republican senators unveiled their own $ 618 billion emergency aid proposal this week. That package has checks off $ 1,000 per personplus $ 500 pr. qualified child and adult dependent.
These legislators also tried to lower the thresholds for full payments to $ 40,000 per year. individual and $ 80,000 per. couple. Payments would also phase out more quickly and be limited to $ 50,000 per share. person and $ 100,000 per. couple.
Some lawmakers are concerned that Biden’s plan, as it stands, could provide stimulus checks to people who do not need them.
Research from the Penn Wharton Budget Model released this week found it 73% of the $ 1,400 checks would go in the direction of savings and provide limited stimulus to the economy.
Yet another research from the University of Illinois found it approx 8 million Americans without a job does not receive unemployment benefits, which strengthens the argument for sending more direct payments.
Much of Biden’s commitment comes from previous promises to send $ 2,000 stimulus checks.
While some congressional lawmakers were also in favor of this amount, they were only able to get direct payments of $ 600 into the final agreement in December. The $ 1,400 checks would help them reach the $ 2,000 total.
“It’s pretty clear they’re obligated to pay $ 1,400,” said Erica York, an economist at the Tax Foundation. “It’s probably safe to say that people who got the $ 600 payment will get the $ 1,400 payment.”
The question is how policy makers could limit the money so that people who did not receive $ 600 checks would not receive $ 1,400 either, she said.
Checks generally downgrade to a certain rate – $ 50 for every $ 1,000 above the full payout thresholds. Because the second payment was lower than the original $ 1,200 checks, fewer people received reduced payments.
Now, with $ 1,400 checks, more people could be eligible unless they adjust the downsizing rate, York said.
Changing that rate would probably not result in many people being excluded from payments, the Tax Fund’s research found.
By doubling the rate from 5% to 10%, just over 92% of taxpayers would still get a payment, York said. That is compared to more than 94% who would receive the money if the rate remained the same.
But such a change could better target the money at the people who qualified for the $ 600 checks, York said.
For those who are eager to receive a third check, the good news is that most people do not have to do anything. That’s because the IRS already has the information on file from the first and second rounds, according to York.