Third stimulus check: What are the odds of a $2,000 or $1,400 check? – Community News
Stimulus Check

Third stimulus check: What are the odds of a $2,000 or $1,400 check?

Victories of the two Democrats in Georgia House elections in the Senate Analysts say this spring could mean a third stimulus check for Americans. That would provide crucial financial support to households this month receive payments of $600 led by the most recent emergency law — an effort that has been criticized by both Democrats and some Republicans as doing too little to help families struggling through the coronavirus pandemic.

CBS News projects that Democrats Jon Ossoff and Raphael Warnock have defeated incumbent Republican Senators Kelly Loeffler and David Perdue. The surprising outcome will result in a 50-50 split between Senate Democrats and Republicans, giving Vice President-elect Kamala Harris the casting vote. That will facilitate the approval of another stimulus bill, which President-elect Joe Biden has previously said he backs, according to political and financial analysts.

Another so-called Economic Impact Payment would come on the heels of the most recent emergency measure, a $900 billion bill that President Donald Trump deferred and criticized the $600 payments as “ridiculously low.” Democrats and some Republicans had supported lifting the checks to $2,000 per person, but the effort failed due to opposition from Mitch McConnell, Senate Majority Leader.

A big question is whether lawmakers could push for $2,000 or $1,400 cash payments, the latter representing the difference between the $600 checks and the destroyed attempt to boost them to $2,000 in the most recent bill. On Jan. 10, Mr. Biden tweeted that $600 “just isn’t enough when you have to choose between paying rent or putting food on the table.”

“We need $2,000 incentive checks,” he added.

“We anticipate growing expectation that Democrats will pursue additional stimulus measures, with a check for $2,000 (or at least the remaining $1,400) leading the way,” Ed Mills, an analyst at investment bank Raymond James, said in a report after the release. elections in Georgia.

Biden: Final support a “deposit”

Biden has described the $900 billion stimulus bill passed last month as a “down payment” on a more comprehensive aid package. That could translate into a new package ranging from $1 trillion to $1.5 trillion, according to Heights Securities analyst Hunter Hammond.

A sweetened stimulus package was likely to come in March, Hammond and Mills predict. That’s because the most recent emergency measure extended unemployment programs through mid-March, pushing Congress to provide additional funding by that closure to continue unemployment benefits for millions of unemployed Americans.

Democrats are likely to push for another round of checks worth $2,000, Hammond predicted, noting that both Mr. Biden, as well as Warnock and Ossoff, had campaigned on the issue. While searching for the candidates ahead of this week’s vote, Mr Biden said their election would help get $2,000 checks “out the door immediately, to help people in real trouble.”

8 million more poor people

Even with previous stimulus, 8 million Americans have fallen into poverty during the corona pandemic. Millions of others are experiencing a range of hardships, from food insecurity to problems paying their bills, after the crisis rocked the economy.

The $600 checks issued by the Treasury Department last month can’t last Americans most in need for more than six weeks, according to financial services app Earnin. The company found that people who had lived paycheck to paycheck and who got their first $1,200 checks last year spent their money within a week.

Some economists say much more funding is needed than the recent $900 billion package to help the economy until coronavirus vaccines are rife, which may not be before this summer or fall.


Who gets stimulus checks and how much?

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According to the Economic Policy Institute, as much as $3 trillion could be needed to bring about a rapid economic recovery. The left-leaning think tank noted that the most recent stimulus package has not spent money on state and local governments, which have seen a drop in tax revenues as a result of the crisis.

While the stimulus is helping households weather the crisis, most economists see other emergency measures as more effective, especially programs targeting people currently experiencing financial difficulties, such as unemployment benefits. That’s because the cash payments are distributed to almost every middle- and low-income household, regardless of whether they’ve been financially affected by the crisis.

“Checks are generally less powerful at supporting spending than unemployment benefits,” Gregory Daco, chief economist at Oxford Economics, wrote in a recent research report. He added that the $900 billion emergency bill “is unlikely to meet what is needed to avoid a harsh winter.”