Biden calls for more direct cash to Americans in new stimulus package
The money would be distributed on top of $600 checks, which have already been sent
President-elect Joe Biden detailed his proposals for additional stimulus measures on Thursday, which included plans to dole out more direct aid to American households.
The Biden administration plans to give eligible Americans an additional $1,400 – topping their total second round payments off at $2,000, an amount supported by Democrats and outgoing President Donald Trump.
“An additional $1,400 per person in direct checks will help hard-hit households cover expenses, spend money at local businesses in their communities, and stimulate the economy,” Biden’s team said in a statement.
Trump urged lawmakers to increase the $600 check amounts to $2,000 when Congress passed the most recent aid bill in December but ran into resistance among Republicans who are wary of adding to the national debt.
IRS FACES FRIDAY DEADLINE TO SEND OUT $600 ECONOMIC IMPACT PAYMENTS
Biden’s overall package, which also includes expanded unemployment benefits, an aggressive vaccination plan and a federal minimum wage hike, is expected to cost around $1.9 trillion.
Democrats would potentially be able to pass some of the measures without Republican support through the fast-track budget reconciliation process, which requires a simple majority.
Stimulus check eligibility requirements were not specifically detailed – though qualification would be extended to adult dependents.
If the criteria remains the same as the ongoing round, individuals earning up to $75,000, or $150,000 for married couples, would be eligible. Beyond those income thresholds, the payments began to phase out at a rate of $5 per $100 of additional income.
Individuals earning more than $87,000 and married couples earning more than $174,000 are ineligible.
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Meanwhile, the IRS could encounter some problems sending out the checks as it runs up against the start of the 2021 filing season later this month.
Lawmakers included a Friday deadline in the December legislation for the IRS to send out $600 payments to allow the tax agency to turn its attention to the filing season.
As previously reported by FOX Business, the National Taxpayer Advocate warned that pandemic-related challenges would affect both the IRS and taxpayers through 2021, as the agency still had millions of returns it had not yet processed from last filing season.