The IRS has not completedof up to $ 1,200 per person to millions of Americans, but already some are wondering if these checks will do enough, or if there is a second opportunity relief suggestion.
Theissued by to banks and were introduced as a one-time payment designed to help limit the economic blow caused by the outbreak of . Now, with an unemployment rate of 14.7%, over 33 million people since mid-March, and the country that economists predict globally could be the worst since the Great Depression, there is reason to talk about a second stimulus check in 2020.
There is no indication that a second stimulus package for individuals – some call the "CARES 2 Act" – would be decided immediately. At the moment, a handful of ideas from members of Congress are discussing the possibility. Here's what we know about a second round of incentive payments for 2020 for individuals.
Summary: The First Coronavirus Stimulus Package
In an effort to disrupt the economic impact of the coronavirus outbreak, President Donald Trump signed the March(technically a relief package) which included payments of up to $ 1,200 to eligible U.S. taxpayers and $ 500 for each child 16 or younger. The IRS began sending checks in mid-April, and by the end of the month it had made more than 122 million payments. The rollout was uneven, with to help register and checks.
The argument in favor of another round of stimulus checks
Since mid-March, more than 33 million American workers who have lost their jobs have applied for unemployment. The actual number of unemployed because governors and mayors locked in their states and cities to stop the spread of coronaviruses is probably higher – perhaps millions higher – because many who are eligible did not file an unemployment claim. With job losses, the country's unemployment reached 14.7%. The recently unemployed together with others who were hit by a financial hit from the pandemic may benefit from having more money right now to spend.
The argument against a second wave of relief payments
Some in Washington, including Senate Majority Leader Mitch McConnell, question whether relief measures have met their goals and want to use the brakes before approving more federal spending to evaluate the effects of the already-approved relief measures. McConnell and others are also worried about how additional stimulus packages will increase the historic federal deficit.
What is the Proposal for a Second Round of Financial Stimulus Payments
Instead of a one-time payment, some in Washington claim a more effective way to help struggling US taxpayers and stimulate the economy is through payroll tax cuts that allow workers to hold on to more of their money each paycheck.
President Trump has cast his support behind this strategy to get more dollars into the hands of taxpayers. "I want to see a payroll tax cut," he said at a viral town hall meeting earlier this month. "We won't do anything unless we get a payroll tax cut."
A payroll tax cut could help them with jobs but would not benefit anyone who is already without work and without paychecks, some economists say.
Others in Washington are looking at broader and long-term strategies to help those who wrestled with the coronavirus economic crisis. For example, Congress members Ro Khanna and Tim Ryan propose giving many US residents $ 2,000 a month for at least six months to see their households through the crisis. Senator Mitt Romney proposed a similar plan for $ 1,000 a month, and Senator Josh Hawley supports monthly payments to families with children.
With a longer view, Senators Kamala Harris, Ed Markey, and Bernie Sanders introduced legislation that would provide a check for $ 2,000 each month up to three months after the end of the pandemic. Representatives Rashida Tlaib and Pramila Jayapal propose to extend the payments by one year after the end of the crisis.
What will happen next
Although some in Congress are working to gather support for additional support, neither the House nor the Senate has so far adopted a bill for a second round using payments for individuals. We keep an eye on developments and will update this article frequently.
Meanwhile, learn about financial resources available to you. Here is what you should know aboutand and how to .