The IRS made about 167 million payments in the third round of direct stimulation assistance, and last week another 1.8 million people received a $ 1,400 check. However, some lawmakers are pushing for a fourth round of stimulus aid that will effectively send regular payments until the end of the pandemic.
So far, the federal government’s response to the economic crisis caused byWe provided $ 3,200 to each eligible adult. $ 1,200 under the Coronavirus Assistance Relief and Economic Security Act of March 2020. $ 600 for December bailouts. $ 1,400 based on the US rescue program signed by President Joe Biden in March.
Despite its financial support, millions of Americans are still in financial difficulty, with four in ten their incomes below pre-pandemic levels, according to a study by financial services firm TransUnion. It states that there is.
Approximately 16 million people nationwide receive some form of unemployment support.Unemployment rateWell above the pre-pandemic 3.5%, unemployment remains particularly high in low-wage industries such as the food service and hospitality industries. According to the Center’s analysis of budget and policy priorities in census data in early May, one in four Americans struggled to pay their household expenses last week.
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In short, for many, the latest $ 1,400 check may not last long — the problem isPeople who continue to suffer from unemployment and a weak labor market. In fact, more than 2.3 million people have signed a Change.org petition launched last year. The petition requires lawmakers to pass a bill on a $ 2,000 monthly recurring payment bill.
Some lawmakers have adopted that idea. Twenty-one senators (all Democrats) signed a March 30 letter to Mr. Biden in favor of regular stimulus payments, and the $ 1,400 payment distributed by the IRS made people longer. I pointed out that I wouldn’t drag.
“Nearly six out of ten say that the $ 1,400 payment set to be included in the rescue package will last less than three months,” the senator wrote in a letter.
Meanwhile, millions of CaliforniansWith a new effort from Governor Gavin Newsom. His plan sent state residents a $ 600 stimulus check under a multi-billion dollar spending plan introduced in May, with about two-thirds of Californians stimulating under his suggestion. You may receive it.
A letter from the U.S. Senator does not specify the amount of payment they are seeking, but another effort from Democrats in JanuaryYou will need a $ 2,000 check each month until the pandemic is over. Instead, the American Rescue Plan approved $ 1,400 per eligible adult and dependent.
According to a recent analysis by the Federal Reserve Bank of New York, so far, people who have received three stimulus payments say they spend most of their money on debt repayments or saving money. I am. This may indicate that people are reducing the debt incurred during the pandemic and using that money to build emergency funds in the event of another shock.
Still, according to a February poll by Bloomberg / Morning Consult, many said they plan to use stimulus funds on a basis. Food and housing costs were cited as the top two uses for the third stimulus check after savings.
Bankrate.com said in April that about 7 out of 10 Americans who received or believe they will receive a third payment are important for short-term finances. Overall, the proportion of people in need of additional assistance has been more than a year, although the pandemic has dropped from about eight to ten in March 2020, which caused widespread unemployment, according to personal finance companies. But it’s rising.
According to a survey, one in three people found that stimulation assistance helps help less than a month.
Researchers have found that millions of Americans have survived the hardships of three stimulus payments. However, a May analysis of the University of Michigan census data showed that difficulties increased “significantly” in November and December when stimuli diminished, such as when Congress stalled in another aid round last fall. ..
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Some top economists are seeking more direct help from Americans. More than 150 economists, including former Obama administration economist Jason Farman, signed a letter last year claiming “repeated payments of direct stimulus that will continue until the economy recovers.”
The economy is improving,, Millions of people continue to suffer from reduced incomes and are unable to take advantage of government aid programs, said Greg Nasif, political director of Humanity Forward. 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 given up due to long waiting times or other issues.
“You’ll see reports on how the economy is starting to grow, but there are many Americans who live on salaries, and for many of them the government bailout program couldn’t help. “Nashif said.
How likely is the fourth stimulus check?
Don’t hold your breath, according to Wall Street analysts. “I don’t think it’s likely at this point,” Raymond James analyst Ed Mills told CNBC.One reason is that the Biden administration is focusing on its near-advancement.Reshape the economy by rebuilding dilapidated schools, roads and airports and investing in projects ranging from affordable housing to broadband.
The White House’s proposal to raise corporate tax rates from 21% to 28% has provided most Americans with a $ 1,400 check for opposition from both Republicans and Republicans. It may be more “difficult to pass” than the bill, some Democrats pointed out by Stiffel’s chief Washington policy strategist Brian Gardner.
Still, according to Politico-Harvard polls, only about one-third of Americans believe that the American rescue program will help them a lot. This suggests that some households feel they need more help to survive the coming months.
This summer, many households will receive some form of additional inspirational assistance when families with children under the age of 18 receive direct payments for six months through a revised child tax credit. From July to December, families with children under the age of 6 receive $ 300 per month, and families with children between the ages of 6 and 17 receive $ 250 per child per month.
“Many people will be surprised when the first check arrives,” Nasif said. “It will obviously join the surge in check popularity.”
In the case of Mr. Biden, the family may enjoy more tax cuts in the coming yearsMove forward. Under that plan, the expansion of child tax credits will continue until 2025, giving families a larger tax credit for their children for an additional four years.
At the same time, the economy is expected to recover this year due to higher COVID-19 vaccination rates and the reopening of the state. JPMorgan Chase CEO Jamie Dimon predicted an economic boom in his latest annual letter to shareholders...
“”[W]i-th excess savings, new stimulus savings, huge deficit spending, etc. [quantitative easing by the Federal Reserve], New potential infrastructure bills, successful vaccines and euphoria towards the end of the pandemic, the US economy will probably be booming. This boom can easily occur by 2023, as all spending could grow well by 2023, “Dimon wrote in a letter on April 7.
This can weaken the reason for the government to provide more direct assistance, especially when the unemployment rate recovers and more workers are out of the bystander.
By the end of the year, the country’s unemployment rate could drop to 4.3%, according to Oxford Economics. Still, with 4 million workers still out of the workforce, the road to recovery remains “long”, Oxford economists Oren Klachkin and Gregory Daco said in a study note.
“Looking into the future, the labor market is making a remarkable move as vaccine distribution, increased resumptions and fiscal stimulus are driving employment spikes,” they predict.
Fourth Stimulus Check: What’s Behind the Promotion of Regular Payments?
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