Many have been wondering if a second wave of stimulus checks is on the way, but there are a couple of reasons why more relief payments night not happen. According to C-NET, many lawmakers, including Senate Majority Leader Mitch McConnell, don’t feel confident that the first round of coronavirus stimulus relief payments have accomplished their intended goal yet. They’d like to evaluate the results of the CARES Act funds before deciding on another round of payments.
Additionally, McConnell and other politicians are concerned about how another stimulus packages would increase the already historic federal deficit. President Trump previously commented on the possibility of another stimulus package, making it clear that he would want a Payroll Tax Cuts provision included into the bill. “I told Steve [Mnuchin, Treasury Secretary] just today, we’re not doing anything unless we get a payroll tax cut,” Trump said during a Fox News town hall on May 3. “That is so important to the success of our country.” Payroll taxes include Medicare and Social Security, from both employees and employers. The idea behind a payroll tax cut, is that is would take less money from workers and businesses.
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Opponents of the payroll tax cuts plan have said that it would be pointless to those who’ve lost their jobs and are not receiving paychecks at this time. Garrett Watson, senior policy analyst for the Tax Foundation, spoke out about payroll tax cuts, saying that he is one of the individuals who does not believe it would be helpful. “When you do a temporary tax cut like what the White House is proposing, the literature generally finds there isn’t a big effect on employment levels. If you look at the 2009, 2 percentage points payroll tax cut under the Obama administration, the evidence bears out that most of that federal tax cut was saved by consumers.”
Watson then went on to address how Democrat and Republican politicians have been at odds over the concept. “On the left, the concern is more the downstream effects of how well targeted it is to low income individuals who are not employed right now — and that it might be more of a windfall for the higher earners folks who are currently employed,” he said. At this time, no second stimulus package bill has been officially proposed. Currently, the IRS is still sending out payments and dealing with the responsibilities of the first package.
