THE Senate is considering a second wave of coronavirus stimulus checks that would give extra cash to families with children. Called the HEROES Act, the payments would be similar to the first round – up to $1,200 per individual or $2,400 per couple. However, unlike the CARES act passed earlier this year, the HEROES Act […]
THE Senate is considering a second wave of coronavirus stimulus checks that would give extra cash to families with children.
Called the HEROES Act, the payments would be similar to the first round – up to $1,200 per individual or $2,400 per couple.
However, unlike the CARES act passed earlier this year, the HEROES Act would give families $1,200 for eligible dependants, up from $500, for a maximum of three per family.
In May, The House Representatives passed the HEROES Act, a $3 trillion in response to the COVID-19 pandemic, and the bill is currently making its way through Congress.
Lawmakers are also debating whether to enhance unemployment benefits and back-to-work benefits as part of the relief.
Democratic Senator Edward J. Markey has also been pushing for a monthly stimulus check to be given to anyone who earns less than $120,000 per year.
Senator Markey, alongside Kamala Harris and Bernie Sanders, are behind the separate “Monthly Crisis Support Act.”
That bill would grant Americans recurring stimulus payments of $2,000 until the pandemic subsides.
It would also include a $2,000 payment to dependants – regardless of age.
However, some economists have rejected the idea of a second round of checks.
“The stimulus checks are not very well targeted to people who need them the most,” said Stijn Van Nieuwerburgh, a finance professor at Columbia Business School.
The first round of stimulus checks in March were authorized due to the CARES Act, which included a one-time payment of $1,200 for families and individuals with certain income thresholds.
Under the CARES Act, individuals with up to $75,000 in income were eligible for checks.
For married couples, the max capped at $150,000.
Payments were based on the adjusted gross income from either the 2018 or 2019 tax return, whichever was most recently filed with the IRS.
Unlike the CARES Act which required a social security number to qualify for the check, the HEROES Act will be based on taxpayer identification number — which is used by immigrants to pay taxes.
President Trump also floated an idea of a tax deduction proposal called “Explore America” which would give people up to $4,000 in credits for domestic travel.
This credit is designed to reinvigorate the tourism industry, which has been devastated due to the pandemic.
The Senate will be taking a two-week recess in July before deciding to vote on the stimulus package.
The plan needs approval from Trump and Senate Republicans.
However, Kevin Mumford, an associate professor of economics at Purdue University, believes that these stimulus payments are not properly strategized.
“In order to provide financial help to those who really need it, lawmakers should consider more targeted strategies,” Mumford said.
