This week, Congress will be debating plans for a second stimulus check, and so far, there are a few things we know. Speculation around a new coronavirus stimulus bill began almost immediately after the last bill was passed. The stimulus payments that have gone out are part of the CARES Act legislation created to help the nation with financial struggles during the quarantine period.
Those payments began going out from the IRS in May. Covid-19 is such a contagious virus, that stay-at-home orders has to be issued across the nation, leading many people losing income because they could not work. The government subsequently issued $1,200 checks to taxpayers as a way of helping boost the economy. While individual citizens received checks in the aforementioned amount, married couples received $2,400 payments, and parents were issued and extra $500 for their children. There are currently no official details on what citizens can expect from a new bill, but scroll down to read what we know so far.
Congress Is Back In Session
Congress has a recess scheduled for August 3, but is back in session today to begin discussions on the next stimulus plan. Newsweek reports that both Democrat and Republican leaders are expecting a new bill to be passed before the recess begins.prevnext
Bill "Price Tag"
There's been debate over the amount of the next bill, as this has the biggest impact on what the bill will cover. The first bill, The CARES act, was a nearly $2 trillion bill. The bill proposed by House Democrats, the HEROES act, is around $3 trillion. White House Chief of Staff Mark Meadows recently told Fox Business' Maria Bartiromo that the Trump administration has a plan for the next bill to be in the "trillion-dollar range."prevnext
Democrat leaders have been pushing for more stimulus payments, with some pressing for more than just one more payment. Republicans have been more skeptical of the idea, but President Trump and his administration have said that they are very in favor of the idea. They plan for an "additional thrust" on benefits protecting both employers and employees.prevnext
Treasury Secretary Steve Mnuchin has implied that the next bill will include new measures to support those out of work. The number currently sits at around 17 million people. "Enhanced unemployment is intended for people who don't have jobs, particularly in industries that are harder to rebound," Mnuchin has stated. "We'll figure out an extension that works for companies and works for those people who will still be unemployed."prevnext
Previous "Technical" Problems
While speaking to CNBC earlier in July, Mnuchin also addressed what he called a "technical" problem that allowed some citizens on unemployment to receive more money from the program than they did from their paycheck. The CARES Act expanded unemployment benefits and gave impacted citizens an extra $600 per week until the end of July. He stated that this issue would be corrected in a new bill.prevnext
Payroll Tax Cuts
One of the biggest elements likely to be discussed is the inclusion of payroll tax cuts in the new bill. This is something that President Trump has been very vocal about. "I want to see it," Trump told Fox News Journalist Chris Wallace in a recent interview. "I would consider not signing it without a payroll tax cut."White House Chief of Staff Mark Meadows again shared those sentiments, but did not clarify if the cuts would be full or partial. he also did not state how long the cuts would last.prevnext
Payroll Tax Cuts (cont.)
Trump has always wanted payroll tax cuts to be an included measure, even since before the CARES Act was signed in to law. "As he has done since the beginning of this pandemic, President Trump wants to provide relief to hardworking Americans who have been impacted by this virus and one way of doing that is with a payroll tax holiday," White House deputy press secretary Judd Deere told Newsweek. "He's called on Congress to pass this before, and he believes it must be part of any Phase Four package."prev