Who gets them for debate in Congress; study shows how the latest was used – WHIO TV 7 and WHIO Radio – Community News
Stimulus Check

Who gets them for debate in Congress; study shows how the latest was used – WHIO TV 7 and WHIO Radio

Congress is still working to find a compromise when it comes to the next COVID-19 relief package, which could include a third round of stimulus payments for some of those living in the Miami Valley.

The debate over who should get a check is a hot topic with some saying that only people who need it should get it, while others say everyone deserves the money.

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The proposed $1.9 trillion US bailout proposed by President Joe Biden, if passed by Congress, would include that third round of direct payments. But there is a gap when it comes to who should get the money.

“I think everyone should be able to get it because I think everyone should be able to decide if they want to make it. You never know what situation people are in,” said Miami Twp’s Megan Edmonds.

Others say the money should only go to those who are struggling financially.

This month, the Senate approved a plan to prevent “higher income citizens” from receiving the next round of stimulus checks, and now lawmakers are working to define what “upper income” will mean.

One suggestion was to give the money to those making $50,000 or less. House leaders rejected that proposal Monday and instead proposed checks for individuals earning $75,000 or less, which is the same threshold used to determine checks in the first two rounds.

“Because it’s so uncertain with the future, you always want to have things for a rainy day, because you never know when things are going to happen. People lose their jobs, things like that, you always want something extra,” said Dayton’s Kobe Jones.

Barry James, President and CEO of James Investment Research said those who need it should get it, but warns of the potential long-term consequences.

“We still have 10 million people who lost their jobs during the pandemic,” James said. “It’s going to cause some problems, because eventually we have to pay off that debt. We will pay for it through higher inflation or higher taxes.”

Opportunity Insights Economic Tracker researchers at Harvard University found that households earning less than $78,000 annually spent their second stimulus checks quickly after receiving them in January. Those with higher incomes hid the bulk of the money, their research finds.

“It’s not really helping the economy, we’ve funneled over a trillion dollars, the savings rate has skyrocketed. It’s good for people to have for a rainy day, but if it doesn’t get into the economy, it won’t stimulate the way we want it to,” James said.

Back on Capitol Hill, nothing has been decided yet, so the stimulus debate continues as millions watch to see what happens next.