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The impact of the $2T stimulus package on Americans and the economy

News

By Norman J. Dotson Jr./BNC Digital

Today the Senate reached a deal on a $2 trillion stimulus package that is intended to assist Americans across the nation who have been affected by the coronavirus.

Workers, the unemployed, the self-employed and contractors alike are sure to benefit in their homes. Meanwhile, businesses large and small would receive hundreds of billions of dollars in financial assistance with the hope of avoiding a shut down or having to undertake massive lay offs.

Lingering questions remain for many Americans such as the amount of money that would be allocated to their homes and stipulations,if any, that would prevent them from receiving this government assistance.

Under the latest proposal, adults would receive a lump-sum check of up to $1,200 ($2,400 for joint tax returns), and those with little or no tax liability would get at least $600 ($1,200 for joint returns). Families would receive an additional $500 for each qualifying child.

The payment would be reduced for higher-income households, starting at $75,000 or $150,000 for a joint return. The amount would be decreased by 5 percent of the amount your income exceeds $75,000.

A single person with an $85,000 salary would get $700 after subtracting 5 percent of $10,000, or $500.

The government will most likely will use tax returns from 2018 to decide whether someone qualifies and how much they’ll receive.

The last time the federal government sent checks to Americans was in 2008, under President George W. Bush which was signed into law on Feb. 13, 2008, and checks of up to $600 for individuals didn’t start going out until late April.

With the economy teetering on the edge as a result of the COVID-19 pandemic due to the decrease in consumer spending, which contributes roughly 70 percent of the economy, the consensus is that lower-income earners will be able spend these funds on necessities like food and rent, helping them make those payments even if their hours are cut.