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An interesting new proposal has been put forward by GOP members that includes a slightly different take on stimulus checks.
Republican Senators Bill Cassidy of Maryland, Steve Daines of Montana, Mitt Romney of Utah and Marco Rubio of Florida Have offered up a new proposal that would give every American citizen with a Social Security number a $1,000 payment.
Couples filing jointly would receive $2,000 and children with a Social Security number would be eligible for the $1,000 payment.
This is very interesting because there is no mention of an income cut-off so even those individuals making well above $100,000 a year would presumably be eligible for this.
Another thing that sticks out is that this $1,000 amount is $200 under what is currently proposed by lawmakers.
The latest proposal calls for checks up to $1,200 for individuals or $2,400 for married couples.
But what is interesting here is that under this proposal by GOP members, dependents would be issued a $1,000 check instead of $500.
So a family of four under this new proposal would be eligible to receive $4,000. But under the CARES/HEALS Act they would only receive $3,400.
So this new proposal would actually work better for families who could expect to receive more funds.
This is in line with a lot of the commentary that we have heard throughout the last few weeks about focusing on families.
“As we consider additional relief measures, we should prioritize families by providing them with resources to help with the extra expenses they face as a result of COVID-19,” Romney said.
At this point, it seems like the majority of Republicans do support sending out direct payments to Americans.
We’ve already seen Senate Majority Leader Mitch McConnell present the HEALS Act which authorizes an additional round of stimulus checks and even increases eligibility for dependents.
The support is also coming from the White House and as recently as this week we’ve heard the president mention that he wants stimulus payments to be even higher.
But not all Republicans are on board with more spending. Senators like Ted Cruz and Rand Paul have objected to more spending.
“Borrowing $5 trillion might temporarily mask the pain of the government shutdown of the economy, but at what cost? The destruction of the currency?” Paul tweeted
Other Republicans have recognized the dire situation that we are currently in especially with new GDP numbers showing disastrous output over the past few months.
“I am opposed to massive government intervention in the economy as a general matter. But today’s numbers should remind us that this pandemic is not a general matter,” Rubio tweeted. “It is an emergency which is defined as sudden & unforeseen circumstances that require immediate action.”
Personally, I am more of a fan of the stimulus check plan that has eligibility criteria because at a certain point an additional $1,200 has diminishing returns to a high income earner and is in my opinion a waste.
But I do like that families are eligible for more payments under this proposal.
Ultimately, we are hoping to hear something by the end of the day today but it is possible that these negotiations could last through the first week of August or potentially even longer if the Senate believes they need an extension of the current session.
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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.