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Today, the House Ways and Means Committee advanced some big measures of the Democrats’ coronavirus relief package: $1,400 checks and a tax credit.
The new plan calls for $1,400 stimulus checks to go out to millions of Americans.
The income requirements will be exactly the same for receiving the full amount of payments which means that if you make $75,000 or less you will get the full payment as an individual and if you make $150,000 or less, you will get the full payment as a couple.
The difference is that the payments would be phased out entirely for individuals making more than $100,000 and couples making more than $200,000.
The proposal will now go to the House Budget Committee and if it passes when a vote occurs later this month, Democrats would have the ability to pass the proposal without any Republican support by resorting to the budget reconciliation process.
“Over the last two days, the Ways and Means Committee has considered aggressive, science-based solutions that will deliver the urgent relief our country so desperately needs,” Rep. Richard E. Neal, the committee chairman, said.
“From unemployment benefits to health care affordability, the work we’ve done is substantial, and it is exactly what the American people have been calling on us to do to meet this moment.”
“To my colleagues on the Committee, the amazing Committee staff, and the many others who worked around the clock to make this happen, thank you for putting the American people first and showing them that help is on the way,” continued Neal.
“I look forward to this package passing Congress and President Biden signing it into law.”
The legislation that moved forward also included provisions related to increasing federal unemployment benefits from $300 to $400 per week and increased tax credits for children.
Stimulus talks just took a pretty sharp turn in the House of Representatives. Lawmakers in the House are trying to push for the same type of income limits for the third stimulus check.
This comes after there has been a lot of talk about bringing down the income limits considerably from the prior round of stimulus checks.
We’ve seen talks about bringing the income limit for full payments down to as low as $40,000 while Democratic lawmakers have proposed more modest decreases going down to $50,000 or perhaps $60,000.
But it looks like Democrats in the House are drafting legislation so that Americans earning $75,000 or less would receive the full $1,400 payments.
The big difference here is that the payments will phase out a lot quicker than the previous rounds. Individuals who earn more than $100,000 would be cut off and couples earning more than $200,000 would be cut off.
This aligns with the prior discussions and negotiations between lawmakers to prevent wealthy Americans from receiving financial relief that they don’t truly need.
Many lawmakers such as Joe Manchin feel strongly about the need for targeted payments.
“I don’t think a single person on this floor would disagree to target the relief to our neighbors who are struggling,” Manchin said on the Senate floor last week.
“There are other families who have not missed a single paycheck as a result of this pandemic. It does not make sense to send a check to those individuals.”
Interestingly, Manchin indicated that he was open to this new plan.
And if one of the most vocal proponents of the targeted approach is on board, one has to assume that many others in the Senate will be as well….
This is a very interesting development because it accomplishes the main goal that lawmakers set out to achieve which is to not waste relief funds. It also keeps a lot of Americans happy because it offers the full $1,400 payment that was promised and does not abruptly cut off at lower income limits.
It looks like debates will turn up on Wednesday and last through Friday this week as the House Ways and Means Committee debates its part of the reconciliation bill.
Reportedly, lawmakers are still hoping to pass the third round of stimulus checks no later than March 14 which is the time when supplemental unemployment benefits will run out.
At this point, I’m most interested in hearing how more senators feel about this plan to keep the current income limits but to phase out eligibility quicker. I’ve got a feeling that it’s going to be a pretty popular proposal especially since the budget reconciliation route does not require GOP votes.
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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.