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Millions of Americans have been waiting anxiously for more details regarding the next round of stimulus checks.
And unfortunately, the other week it seemed like things took a step backwards when we heard that the Senate might be imposing a $40,000 a year limit on income for stimulus check eligibility.
Mitch McConnell went on record stating, “I think the people who have been hit the hardest are people who make about $40,000 a year or less.”
And not only that, but after that we heard that many more Republicans were getting on board with this income cap idea.
Their position is (somewhat) supported by data.
According to Federal Reserve Chairman Jerome Powell, 40% of U.S. households earning under $40,000 lost their jobs in March 2020.
So the $40,000 a year income threshold had data backing it up and what seemed like rapidly growing support.
But, it looks like an income cap at $40,000 per year may not actually happen.
This information is more in line with comments from players like the president who has shown strong support for a generous stimulus package with large numbers.
With elections coming up in just a couple of months, I can see the president making a strong push to counter any strict eligibility cut-offs.
Otherwise, millions of Americans may feel slighted, especially if they received funds the first round.
And remember, there is the ever increasing number of coronavirus cases still happening in the country.
If those cases would have dwindled down by now and businesses were remaining open, I think the argument for fewer stimulus checks would have been much stronger.
But with so many people out of work and with unemployment benefits still in flux, I think the argument for more stimulus funds is about as strong as it can be.
We won’t know what the Republicans have proposed until likely next week, possibly on Monday although that might be the best case scenario.
But it’s great to hear that this low income threshold may not be so likely to get passed.
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Daniel Gillaspia is the Founder of UponArriving.com and creator of the credit card app, WalletFlo. He is a former attorney turned full-time credit card rewards/travel expert and has earned and redeemed millions of miles to travel the globe. Since 2014, his content has been featured in major publications such as National Geographic, Smithsonian Magazine, Forbes, CNBC, US News, and Business Insider. Find his full bio here.