President Biden remains committed to continuing in his pledge to support the Americans till there is an economic turnaround. As the scene continues to be grim owing to the pandemic, the third stimulus check has run its course. There are more ways that the people can continue to get more support right into the next year.
In a speech before congress on April 28, President Biden has outlined his dreams to provide more jobs, stamp out poverty and continue supporting Americans till there is some light at the end of the tunnel. He terms it an investment that is “once in a generation” in the nation and its people.
Around 163 million stimulus checks have already been sent out including the 2 million sent out this week. Some states have already given out more money than sanctioned under the Economic Impact Fund.
But Republican senators have voiced their reservation for the continuation of the stimulus check. They have pointed to a rapid increase in the budget deficit as they speak out against making the measures permanent. Many are against the additional unemployment boost that will guarantee $300 per week.
More Support To Come Post The Third Stimulus Check
The stimulus check will be followed by the child tax credit payment. It will give you up to $3,600 in installments. Half of it will be paid between July and December 2021. The rest will be part of the tax refund for 2021 paid next year.
A new package after the stimulus bill and the child tax credit will be the $2 trillion infrastructure bill. It is expected to overhaul the basic infrastructure of the nation. It will create more jobs and support the economy.
Extending The Present Plans
Another proposal being studied is extending the child tax credit to 2025. The expansion of this scheme will bring down poverty in children by over 45%. Close to 5M children are expected to come out of insufficiency.
The American Families Plan
The latest scheme announced by President Biden will continue the direct support to the people and is expected to set aside $1T for families and individuals. Another $500B could be given out as tax credits.
Though it is still in the planning stages, we should get more updates soon.
Support for education is also on the cards. It was President Biden’s election pledge to turn the initial two years of college education free. It will cover both adults and new school students. Training programs that are not within the definition of colleges will also get equal support.
Free pre-kindergarten education is also on the anvil for 3-4year kids. The President is also making good on his promise to make child care affordable. There could also be more support for medical and paid leave.
Odds Of The Fourth Stimulus Check
Prominent Democratic lawmakers have called for a fourth stimulus check once the third one has run its course. The third payment will run out for most Americans within 3 months. A fourth will be necessary, they feel to guarantee basic necessities for most Americans.
The American Jobs Plan aims to build and restore the aging infrastructure, invest in the development of electric vehicles, and research for clean fuel. The White House has proposed boosting the corporate tax rate from the present 21% to 28%. That is sure to run into strong opposition from the Republicans and also some Democratic lawmakers.
The president has urged Congress to support his proposal to raise taxes on the rich Americans for the first time in a decade. That should help him in his plans to reshape the American economy and provide relief to millions of American families.
The capital gains tax could jump to 3.6% from the present rate of 20% for people earning more than $1 million per year.
Hike In Minimum Wage
The effort by President Biden to increase the minimum wages to $15 ran aground but efforts are continuing to raise the minimum wage to help millions of workers.
Other Options Being Studied
Around 75 members of Congress have supported giving stimulus checks of $2,000 till the pandemic runs its course. The rationale being one-off payments are never sufficient for families facing the worst economic crisis since The Great Depression. But President Biden has refused to make any commitment as he remains focused on the infrastructure package at present.
Congress could also study options to make the child tax credit permanent. Biden is all for extending the recurring checks. Other members shave called for making the child tax credit permanent.
The Parent Tax Credit was proposed by Senator Josh Hawley that could give support of $12,000 by way of tax cuts. The plan could allow parents to take care of their children from home and not depend on childcare providers that are quite expensive. To qualify. There should be at least one child under 13. No income phase-out has been proposed in this scheme.
Extending unemployment insurance is also another area that is being studied. Unemployment benefits are expected to run out in September. Under the stimulus package, you are entitled to $300 as supplemental federal unemployment benefits. Democratic lawmakers have proposed a permanent expansion of benefits for the jobless. They have called for a boost in the amount paid for unemployment, the extension of the benefits given weekly at present, and expanding the scope of the eligible works that could tie payments to economic conditions.
Congress can help provide immediate and direct support to millions of Americans but would remain limited in its spread.
Student Loan Cancellation
Another stimulus check could be in the form of loan cancellation for students. The President has urged the department of education to review his authority to cancel all student loans. This could be achieved unilaterally without the approval of congress. There are three ways by which President Biden proposes to cancel student loans. It could either be done through executive order, but he has instead requested the congress to cancel students’ loans up to $10,000.
Growth In Jobs
Job growths are expected to get better with the introduction of special measures and the success of the vaccination process. Around 62 % of the total job have recouped/. 13.9 million of the 22.4 million jobs lost during the pandemic are back. But the uncertainty brought about by the pandemic remains.
Successive rounds of payment could lift 6.6 to 7.3 million people out of poverty. The figure depends on whether the amount will be restricted to certain groups or will cover all Americans.
The IRS continues to make one-time payments for this round of stimulus checks and also circling back to those who either missed the payment or underestimated the payments. However, before Biden signed even the American Rescue Plan in March, Congress members were looking to Biden for the inclusion of another fourth round in the upcoming big bill.
