Will Congress get behind a fourth stimulus check? Here is all that we know of the chances of another stimulus payment to get us through the pandemic. The IRS has been sending weekly payments without a break since the American Rescue Plan was passed by Congress and signed by the President on March 1, 2021. But many Americans are expecting a fourth stimulus check and many lawmakers have got together to push the President and make that possible.
The authorities have made more than 165 million payments to date with a value of around $388 billion. And many in Washington feel that the stimulus checks have served their purpose and it is time to spend money on building America.
Democrat Pramila Jayapal reiterated that the American people needed certainty, stability, and predictability and not just relief. She felt a $1,000 monthly stimulus check was the need of the hour. But others feel that the economy is on the cusp of a boom. Any further direct economic stimulus was not necessary.
The President is preoccupied with his American Jobs Plan, his efforts for a total overhaul of the American infrastructure that is in a pretty bad shape.
Some More Benefits That Should Benefit Your Directly
But there are other ways that the Biden administration has planned more money to the American public. Some ways can bring in thousands of dollars either as tax breaks or benefits.
The biggest is the child tax rebate that could bring in up to $3,600 for each child in American families. Half of the payment will be in monthly recurring payments starting July 15, 2021. The rest will be a tax refund against 2021 returns to be filed next year.
You can also claim the $16,000 maximum in credits for multiple children if you have been spending on child care services this year. This includes the cost of babysitters, daycare, and transportation. This is applicable if you work or even are actively on the look for work. You can claim this deduction only when you file the 2021 tax returns next year.
Unemployment benefits of $300 per week have been extended till September 6, 2021. This is an extension of the Pandemic Unemployment Assistance for self-employed, part-time, and gig workers.
Another tax benefit is the $10,200 waiver of taxes on unemployment benefits if your total earnings are below $150,000.
How Close Are We To A 4th Stimulus Check?
The American Rescue Plan guaranteed up to $1,400 for each subject to their earnings. There was also the extension through September 6, 2021, of the $300 weekly jobless benefits plus the CTC worth up to $3,600 per child. It starts from July 15, 2021, and continues into the tax season next year.
Though President Biden is advocating two more bills this year, neither has put been about a direct stimulus check.
But Democratic representatives of both the Senate and the House have pitched for a fourth stimulus check. This includes recurring payments, some even monthly.
A group of influential lawmakers has asked the President to include fixed stimulus checks in the next bill. The signatories include Senators Bernie Sanders and Elizabeth Warren.
They have urged the president to include both recurring payments and extension of direct unemployment insurance as part of long-term plans. A fresh group of 20 more Democratic lawmakers has made a request a few weeks later along similar lines.
The Shape Of The Next Stimulus Check
The present American Rescue Plan has three categories of payments, the $1,400 max stimulus check reaching people and their dependents directly.
Any future bill might extend direct benefits only to particular groups on payments based on their immediate economic needs.
Here are the 3 forms of benefits under the American Rescue Plan.
The $1,400 Stimulus Check
This direct economic stimulus has been sending out checks to Americans based on their income. All dependents stand to contribute the same amount to the family total.
Child Tax Credit
This extended child support fund gives up to $3,600 per child starting July 2021. The final part of the payment will be adjusted against tax returns in 2022.
An Extended Unemployment Bonus
Weekly stimulus checks for the unemployed have been extended to September 6, 2021. It will bring in $300 per week, plus the benefits given by the state to the unemployed.
The Stimulus Check We Can Expect In The Future
The third part of President Biden’s economic support plan could have plans for more direct stimulus checks under the American Families Plan. It could take any one or a combination of the following forms.
More Recurring Payments
This is the most likely form for the next stimulus check. And this is the place where the groups of Democratic lawmakers have called on the President to go in for a recurring form of stimulus checks to tide over the economic downturn. The key phrase here is direct support to families. Direct support to families primarily for child care. Direct support to workers and their families through an all-inclusive national family and medical leave program. And a plan to help people manage their and their families health.
And Extended Tax Cut For Families With Children
The child tax credit payments are to start this July. This will send immediate payments to middle and low-income families with kids. President Biden has called for the extension of this support through 2025 and also make the CTC fully refundable permanently.
Plans To Push Through Long-Awaited Reforms In The Minimum Wages Act
The implementation of the Raise the Wage Act, 2021 would help eliminate the extremely low minimum wages of $7.25 an hour at present. This needs to be raised to a national minimum wage of $15 per hour.
After adjusting for the rising cost of living, a federal minimum wage worker working full time earns 18% less than what their counterpart earned in 2009; the time of the last increase in minimum wages. ($15,080 in 2021, against $18,458 in 2009), and it is 46% less than earned in 1968.
Some want to settle for $11 per hour at present. A study by Brookings Institute has reported that a rise to $15 per hour of minimum wages could give 37% of American households financial freedom.
Continuing Unemployment Benefits Beyond September 6
The group of progressive Senators has also called upon the President in their letter for extending the unemployment benefits of $300 per week beyond September. The National Employment Law Project was critical of the September timeline. They feel things will not turn to normal by then. It would be a short-term view and fails to take care of American workers struggling to secure employment.
