The IRS made more than 169 million payments in its third round of direct stimulus assistance, and in July more than 2 million people received checks for $1,400. However, some lawmakers are pushing for a fourth round of stimulus aid that would effectively send regular payments until the end of the pandemic.
So far, the federal government’s response to the economic crisis caused by the coronavirus pandemic has paid out $3,200 to eligible adults. $1,200 under the Coronavirus Relief and Economic Security Act of March 2020. $600 for the December bailout. $1,400 based on a US rescue program signed by President Joe Biden in March.
Despite its financial backing, millions of Americans remain in financial difficulty, and the proliferation of Delta variants is creating new economic headwinds. Nearly a quarter of Americans struggled to pay for their household expenses in the past week, according to new census data that surveyed people in the last two weeks of August.
Unemployment rate, even higher than the pre-pandemic level of 3.5%. And while companies are hiring, about 5.3 million people are still getting paid today compared to before the pandemic. Oxford Economics recently lowered its forecast for global economic growth in 2021 from 6.4% to 5.9%, alerting economists to the spread of the delta variant.
“Uncertainty and hesitation could ultimately slow the recovery from here compared to baseline expectations,” said Benmei, global macro research director at Oxford Economics. I am writing
At the same time, 9.1 million people died, when federal benefits have expired. This would wipe out about $5 billion in weekly profits for the unemployed. It is this aid that helped these workers pay for groceries, rent and other necessities.
In short, for many, the latest $1,400 check is long gone, even as other pandemic stimulus nears their end.People who suffer from unemployment and weak labor market. Indeed, the Change.org petition launched last year has been signed by more than 2.8 million people. The petition requires lawmakers to pass a bill on a $2,000 monthly recurring payment bill.
Some lawmakers have embraced that idea. Twenty-one senators (all Democrats) repeatedly signed a March 30 letter to Biden in support of the stimulus payment, and the $1,400 payment distributed by the IRS pulled people off. I indicated that it would not be crowded.
“Nearly six out of ten say the $1,400 payment to be included in the rescue package will last less than three months,” the senator wrote in a letter.
On the other hand, some states.. A new initiative from Governor Gavin Newsom could cause nearly two-thirds of California residents to be subject to a “Golden State Stimulus” check. The effort will provide $600 to low- and middle-income earners filing their tax returns in 2020. Some Florida and Texas have approved bonuses for teachers to help them cope with the effects of the pandemic.
A letter from the US senator does not specify the amount of payment they are seeking, but another attempt by Democrats in JanuaryYou’ll need a check for $2,000 each month until the pandemic is over. Instead, the American Rescue Plan approved $1,400 for an eligible adult and dependent.
Child Tax Credit: July 15 deposited
For some families, the IRS received another form of stimulus assistance on July 15.In the bank account of the parent who is eligible for Child Tax Credit (CTC). According to an analysis of census data from the left-handed advocacy group Economic Security Project, the family received an average of $423 on their first CTC payment.
Eligible households will receive up to $1,800 in cash by December and will be divided equally over the six months from July to December. The aid comes from the expanded CTC, which is part of President Joe Biden’s US rescue program.
Eligible families receive $300 per month for each child under the age of 6 and $250 for children between the ages of 6 and 17. that some familyHe said the additional money would be spent on childcare, new semester supplies and other needs.
In Mr Biden’s case, the family could enjoy more tax cuts in the years to comeGo ahead. Under that plan, the extension of the child tax credit would continue through 2025, giving families a bigger tax credit for their children for another four years.
emergency fund, savings
According to a recent analysis by the Federal Reserve Bank of New York, people who have received three stimulus payments so far say they spend most of their money on paying off debt or saving money. I am This could indicate that people are using that money to reduce debt incurred during the pandemic and to build an emergency fund in the event of another setback. ..
Bankrate.com said in April that seven in ten Americans who received or believed they would receive a third payment were critical of their short-term finances. Overall, the proportion of people in need of additional support has increased over a year, according to personal finance companies, although the pandemic dropped from about eight to ten in March 2020, leading to widespread unemployment. But it is increasing.
According to one survey, one in three people found stimulation aids to help in less than a month.
Researchers have found that millions of Americans have escaped the hardships of three stimulus payments. However, a May analysis of University of Michigan census data showed that difficulties increased “significantly” in November and December when stimulus eased, such as when Congress stalled in another aid round last fall. ..
from paycheck to paycheck
Some top economists are asking Americans for more direct help. More than 150 economists, including former Obama administration economist Jason Furman, signed a letter last year claiming “repeated payments of direct stimulus that will continue until the economy recovers.”
Although the economy is improving, millions of people are suffering from low incomes and are unable to take advantage of government aid programs, according to Naseef. According to a March survey by economist Eliza Forsythe, only four out of ten unemployed workers actually received unemployment assistance.
Many did not apply for unemployment benefits because they did not think they were eligible, but others may have left because of long wait times or other issues.
“You’ll see reports of how the economy is starting to grow, but there are many Americans who live on pay, and for many of them the government bailout program couldn’t help.” Greg Nassif said. Humanity Forward Political Director.
How likely is the fourth stimulus check?
According to Wall Street analysts, don’t hold your breath. “I don’t think it’s going to happen at this point,” Raymond James analyst Ed Mills told CNBC. One reason is that the Biden administration is focusing on its progress.Reshape the economy by rebuilding dilapidated schools, roads and airports, and investing in projects ranging from affordable housing to broadband.
Stifel’s Brian Gardner said on August 11 that the proposal, which the White House says would be funded by raising the corporate tax rate from 21% to 28%, is likely to consume legislators this fall. Said in the research notes of the day.
“Autumn is getting busy in Washington as Congress rolls out two infrastructure bills, including a tax hike, approving annual spending bills and raising debt caps,” he said. where did it go.
Also, economic recovery is facing headwinds in the form of Delta variants spread across the country. COVID-19 cases are skyrocketing in some states with low vaccination rates, which may discourage them from taking service jobs in restaurants or other jobs that involve contact with the general public. I have.
Unable to stop COVID-19 surge in TexasAccording to a recent survey, annual production has fallen by more than $ 13 billion. Fears of being infected with COVID-19 have also increased unemployment in Texas as workers choose to stay home or stay at home to care for their sick family. The study tells.
Meanwhile, the federal Pandemic Unemployment Allowance expired on September 6, ending an innovative program that provides unemployment assistance to people who would not normally be eligible for unemployment allowance, such as gig workers and part-time workers. According to experts, this can increase problems in many homes.
“This cliff threatens the economic recovery achieved by undermining the consumer spending economy, threatening the economic recovery progress achieved by undermining the consumer spending economy and laboring millions of people,” said Andrew Stetner, Sr. Fellow Century Foundation said in a statement. Will put them at risk of permanent difficulties. “
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