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Summary
- Democrats are pushing to pass a US$1.9 trillion coronavirus relief bill this week.
- The terms have called for direct payment of US$1,400 to each individual based on the same income thresholds as the prior two stimulus checks.
- Apart from these checks, the bill also has a provision to provide financial assistance for small businesses.
In an attempt to revive from the pandemic induced rescission, American president joe Biden is moving forward with his $1.9 trillion relief package. After the house vote, Joe Biden also called out for a “quick action” from the senators on the American Rescue plan. This has raised hopes for the American for another round of stimulus checks.
However, the provision of raising the federal minimum wage to $15 an hour by 2025 is unlikely to be included in the current provision after the Senate parliamentarian ruled out the same on Thursday. This has also ruled out the possibility to tax the companies that pay below an unspecified wage.
The removal of the wage increase would help speed up to pass the bill by mid-March as low-income workers would need immediate support. A US$1,400 check has also been included in the bill, which Democrats are pushing to get it passed by 14 March 2021.
The terms have called for direct payment of US$1,400 to each individual based on the same income thresholds as the prior two stimulus checks. Individuals getting the full amount includes having adjusted gross income of US$75,000 or below, married couples who file joint income with up to US$150,000 and heads of household with up to US$112,500.
However, individuals earning higher income would be getting lower assistance via the check payments. For instance, those individuals earning below US$100,000, married couples with $200,00 and heads of household with $150,000 would get a slashed amount.
Apart from these checks, the bill also has a provision to provide financial assistance for small businesses, schools, states etc. The weekly unemployment benefits would also notch up from US$300 to US$400 under the bill. Other benefits include offering tax breaks to families with kids and ramping up the spending on the COVID-19 testing facilities and contact tracing.
Read More: How does a stimulus boost an economy?
