The number of unemployment filed as a result of the Coronavirus since Mid-March in the US has increased to 33 million people and as the company might be heading towards economic recession according to predictions from economists globally, the US government is looking forward to keeping its citizens afloat with stimulus payments.
The IRS had been sending out stimulus payment up to US$1,200 per person to millions of American citizens but there have been worries if that will be enough and if there could be a second round of the Coronavirus relief bill. The “economic impact payments” being issued by the IRS via direct deposit and paper checks in the mail were introduced as a one-time payment designed to help blunt the financial blow caused by the outbreak of COVID-19.
There haven’t been any support in Congress to pass a second stimulus package for individuals which are calling the CARES 2 Act – a handful of ideas from members of Congress are being discussed and gaining traction. Here’s what we know about a second round of stimulus payments in 2020 for individuals.
First, the initial coronavirus relief bill
was signed into law by the US President, Donald Trump back in March to release a US$2 trillion economic stimulus package which included payments of up to US$ 1,200 to eligible taxpayers and US$ 500 for each child from the age 16 and below. The IRS had since being sending out this payment to citizens with some 122 million payments already being made.
So there is thought about a second round
And since the shelter-in-place measure have been enforced, many companies have been closed with millions of job losses (about 33 million Americans file unemployment) but the number was thought to be more higher than that as there are eligible people who might not have filed for jobless claim. The newly unemployed along with others taking an economic hit from the pandemic might benefit from having more money right now to spend.
With that said, there have been some arguing in support/against the second round of the stimulus payment as some in Washington including Senate Majority Leader Mitch McConnell had questioned whether the relief measures have met their goals and want to pause for a second in order to check the effects of the already-approved relief packages. McConnell and others also worry how additional stimulus packages will increase the historic federal deficit.
So rather than the one-time payment, some in Washington argue a more effective way to assist struggling taxpayers and stimulate the economy instead by payroll tax cuts that will allow workers hold on to more of their money when paid.
The US President is in support of this option which is meant to get more dollars into taxpayer hands. “I want to see a payroll tax cut,” he said at a virutal town hall meeting earlier this month. “We’re not doing anything unless we get a payroll tax cut.” But even though that is a good move, this will only benefit those who still have their jobs while those who do not won’t really benefit from this according to economists.
Others in Washington are looking at broader, long-term approaches to assist those staggered by the coronavirus economic crisis. Congressmen like Ro Khanna and Tim Ryan, for example made a proposal whereby US residents be given US$ 2000 a month for at least six months to see their households through the crisis. Another US Senator, Mitt Romney made similar plan but his is US$ 1000/month and another Senator Josh Hawley supports the monthly payment to families with children. Others like Rashida Tlaib and Pramila Jayapal added that the monthly payment be extended to a year right after the end of the crisis.
But so far so good…
Even there have been support from both Houses in support of the additional aid, none of the Houses has passed any bill for a second round of the relief payments for individuals even though there might be newer development about this during this coming weeks.
Although some in Congress are working to rally support for additional aid, neither the House nor the Senate has so far passed a bill for a second round of relief payments for individuals. We are keeping an eye on developments and will update this article frequently.