Congressional Democrats continue to approve a sprawling coronavirus relief plan without any support from Republicans, likely leaving most Americans with a third stimulus check.
But even if you qualify for the first two payments made by the government in 2020 and early 2021, you may not receive the $1,400 check.
While President Biden has insisted the emergency package of nearly $2 trillion must include direct payments worth $1,400, he has indicated he is open to narrowing the eligibility for the money in hopes of getting some GOP support.
BIDEN FEELS BACK AT SOME PROGRESSIVES OVER $1,400 STIMULUS CONTROLS IN PROPOSAL FOR COVID RELIEF
“Further targeting does not mean the size of the check, but the income level of the people who receive the check,” White House press secretary Jen Psaki told reporters during a briefing on Wednesday. “That’s something that’s up for debate.”
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. .
Still, Psaki suggested during a news conference on Tuesday that Biden is wary of lowering the income threshold too drastically. For example, she said he believes a nurse and teacher who collectively earn $120,000 a year “still need to get a check” — something Biden reiterated during a meeting with White House aides.
“It’s in his plan,” Psaki said. “People need to get the help they need.”
WHAT’S IN BIDEN’S $1.9T STIMULUS PLAN?
If the bailout plan followed a formula in the legislation passed by the House last year, checks would decrease by $1,400 for individuals earning $75,000 more per year and families earning $150,000 or more. But the phasing out level is rising for families with more children, meaning that a multi-child family earning more than $300,000 a year could theoretically get some cash even if they haven’t had a financial setback during the pandemic.
New research published by Opportunity Insights, an impartial policy institute based at Harvard University, has found that the money would be most effective in boosting the U.S. economy if it targeted lower-income Americans.
The economists found that when the government sent out $600 checks as part of the $900 billion aid package that Congress approved in December, spending on households earning less than $46,000 rose 7.9% from Jan. 6 to 19. compared to the same period a year ago.
By comparison, spending rose just 0.2% for households earning more than $78,000.
Targeting the next round of incentive payments to lower-income households would save significant resources that could be used to support other programs, with minimal impact on economic activity, the researchers wrote.
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Under the $900 billion aid package that Congress approved in December, American adults who earned less than $75,000 in 2019 received the full check for $600, while couples earning less than $150,000 received $1,200. Payments were phased out for higher earners (5% of the amount by which their adjusted gross income exceeded the original threshold) and phased out completely for individuals earning more than $87,000 and couples earning more than $174,000.
The income threshold under the CARES Act legislation was slightly higher: individuals earning less than $99,000 would be eligible to receive the money, while couples earning less than $198,000 would receive a check.