Second stimulus check updates

0
47108
Second stimulus check updates
Image credit to Jernej Furman. Image modified from original.

The latest COVID-19 aid package roped in a price tag of over $1 trillion, which had seemed quite substantial at the time. It had been decided when the Congress and the officials at the White House were negotiating terms on speeding up virus testing, supporting startups, regularizing cash flow, and funding the reopening of schools. In the meantime, the COVID-19 crisis has escalated — the pandemic has crossed state borders and infected the whole nation.

Similar to the spring packages of $1,200 checks meant for low-income groups, another round of payments has been announced by Mitch McConnell, the head of the Senate Majority.

While the Democrats demand funds worth billions for boosting the state governments and schools, the President is looking forward to a payroll tax recession. The meeting held at Capitol Hill was primarily about compromising the $3 trillion bill made by the White House with a proposal of $1 trillion made by the Republicans.

Many Democrats are against the idea of bailing out New York and other cash-strapped states. Many are of the opinion that the taxpayers in Florida will be against paying for the expenses of New York. In an attempt to contain the economic distress, the officials are finding it an uphill task to prevent the spread of the novel coronavirus, mostly as the pandemic isn’t showing any signs of slowing down.

With the death toll rising over 142,000, the statistics of infections spread in the US is much higher than the other countries. At a time when the expiry of the emergency aid is nearing, the health crisis is expanding further.

What is the second Stimulus Package All About?

The Republicans are favoring a package worth $1 trillion, which according to McConnell, is the point of commencement of talks. It will act as an offer that counters the bill passed by the House, which is worth $3 trillion. A few other contributions are likely to be clubbed with the weekly benefits of $600 that are rendered towards unemployment.

Americans belonging to specific income strata are likely to receive more cash payments from the package set by McConnell. It includes the creation of a liability shield for five years, updating the Paycheck Protection with the rendering of startup loans, and about $75,000 for individuals.

It is even likely to set aside a minimum of $30 billion for funding colleges, $70 billion for reopening the K-12 schools, and $105 billion for fueling various forms of education. McConnell allocated the package to a 50:50 ratio between online and in-person studies. On the contrary, the state administration needs the funds to be linked to the reopening of schools.

What Do the Republicans Want?

The Republicans have proposed a much lower amount for reinstating the federal jobless benefit of $600 per week. They say that this would keep the jobless from receiving extra assistance than what they would receive out of their monthly paycheck. US Secretary of the Treasury Steven Mnuchin has stated how boosting job cuts could be settled with a portion of the earlier income of our workers. A fraction of the Republicans is even in favor of eradicating the $600 stimulus.

Just as the Democrats gain momentum, the GOP allies have been divided up by the priorities set by the President. Trump demands a revamp of the entire payroll tax worth 15.3% that supports Medicare as well as Social Security. The figure will be fueled by both employees and employers. Experts have shown that this alone would raise $600 billion.

Final Words:

Trump’s Party is divided on the payroll tax issue. Many are of the opinion that it increases the debt burden and does very little to assist the jobless citizens. However, the supporters have clearly expressed their willingness to stimulate the country’s economy by curbing it for those hired, as it would help extend funds to the masses.

The $25 billion proposed by McConnell for COVID-19 testing has even been panned down by the administration. Those that are against the proposal have shown how a significant portion of the previous allotments is yet to be spent.

The next round of financial aid should surface in the form of ‘targeted’ funds as stated by Kayleigh McEnany, White House Press Secretary. The administration needs it more instead of pouring more into the current pot. However, the decision is still up in the air.

The allegations against the Trump Administration concerning unspent testing fund is now being investigated by Senate Democrats. Chuck Schumer has stated reasons behind why the Republicans must stop stalling after discussing all issues with Mnuchin. The inadequacy of the GOP has largely been dismissed by all bystanders.