Most Americans expect to save, not spend, their $1,400 stimulus check, new survey finds – Community News
Stimulus Check

Most Americans expect to save, not spend, their $1,400 stimulus check, new survey finds

More than a third of Americans expect to save — not spend — the $1,400 stimulus check that President Biden urges Congress to do.

That’s according to a new survey conducted by Morning Consult on behalf of Bloomberg, which found that 34% of Americans plan to save their third cash payment, an increase of 11 percentage points compared to the first $1,200 check it issued. Congress in the beginning. days of the pandemic.

By comparison, 30% of respondents said they would spend the money on food, 22% on housing and 18% on credit card debt.

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The percentage of people who said they intended to put away the incentive payment was higher among wealthier respondents, with 41% of households earning more than $100,000 or more and saying they would save the money, while 37% of households earned between $50,000 and $100,000 per year. In households earning less than $50,000 a year, only 17% of respondents said they saved the money in the spring, but 29% expect to do so this round.

The survey could provide new fodder for Republicans and moderate Democrats who want to be less eligible for the third round of checks. A proposal from senior Democrats includes lowering the threshold for payments to begin phasing out more than $50,000 for single taxpayers, $75,000 for those applying as householders and $100,000 for married couples, according to The Washington Post. .

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But according to draft legislation submitted Thursday by the Ways and Means Committee, most Americans eligible for the first two payments the government handed out in 2020 and early 2021 would receive the $1,400 check.

Individuals earning $75,000 or less (and couples with incomes less than $150,000) would receive the full promised payment of $1,400. The checks would disappear faster than previous rounds, excluding individuals earning more than $100,000 and couples earning more than $200,000. The proposal also extends eligibility to more dependents, including students and disabled adults.

President Biden said on Tuesday that he supported the House Democrats’ stimulus check proposal.

There are potential benefits to Americans saving the money: It could spread government support over time and prevent a surge in consumer spending, which critics say could lead to a spike in inflation.

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Federal Reserve chairman Jerome Powell said on Wednesday he doesn’t expect a sustained price hike when the economy reopens, even as Americans have built up some savings.

“Inflation has been much lower and more stable over the past three decades than in the past,” Powell said.