There are two competing plans for handing out the free loot, and as it stands right now, some will get thousands while others get nothing…
(by Half Dollar) I imagine Round Two is still being doled out.
Trump did sign the second coronavirus relief bill the very last week of December, after all, and after a botched start to round two, suffice it to say there are likely still people who are waiting on checks in the mail, as well as people who haven’t yet cashed in those checks.
Well, fast forward to this week, the first week of February, and there are two competing plans right now, and for lack of better terms, I’ll call them the “Biden Plan” and the “Republican Plan”, even though it’s more like World Wide WrestleMania theatrics than actual sport.
But I digress.
The Biden Plan is a huge spending plan, and eligible families will rake in thousands in this next round.
According to the USA Today, for example, the Biden Plan would mean $5,600 for a family of four when the married couple has annual income that’s less than $80,000!
Here’s the question: If this round of stimulus is going off of the most recent tax filing year, meaning 2020 and not 2019, then isn’t it possible that many more families will qualify for the free money than otherwise would have if one family member lost his or her job in 2020, especially if said unemployed individual, for one reason or another, was denied unemployment?
The flip side to that question is if they’re still using 2019’s tax filings, all things considered, people earned more income in 2019 than in 2020, and as such, some families might be “priced-out” of the free money altogether.
Regardless, it looks like this latest round will be “means-tested” in one way or another, meaning the Federal government will decide if you “need” a stimulus check or not, and apparently, that’s some exact level of income, individual circumstances be danged.
That is to say, the problem I have with the means testing, to borrow a term from real estate, is “location, location, location”, meaning, somebody can appear to earn a large income, but if they live in a city with a very high cost of living, they could miss out on the free money due to exceeding the income thresholds, but that person living in the big city may be in an even worse financial situation than the person living in a rural area with a lower cost of living who does actually qualify for the free money because of a lower income.
I talk about not qualifying for the free money from Uncle Sam because the Republican plan is much less generous in handing out the cash.
In fact, from the same USA Today article linked above, If a married couple earns $100,000 under the Republican Plan, the stimulus payment is $0.00 (screenshot added for emphasis had commentary):
Of course, I’m assuming the payment for children declines to $0.00 at the income level of $100,000.
Shameless Plug Time: Those sitting back, ironically trusting some brand new plan that involves a shadowy group
of pump-n-dumpers with questionable motives in online forums will likely be disappointed in the short-term:
I mean, all of the Red Hats were so sure Trump was a shoe in for re-election, and, um, well, yeah.
We see how that turned out.
And finally, remember: The Economic Impact Payments are only one part of the stimulus bill, and all of it is highly inflationary.
Right now, however, I think the thing that people want to know the most is, “how much will I get” and “do I qualify for it”?