The $2.2 trillion package hopes to sustain America’s economy through this unknown season of COVID-19
The effects of the coronavirus (COVID-19) have surpassed the disappointment of canceled events and quarantine. With thousands of people infected, U.S. politicians must now decide how to curb economic downturn while also keeping America safe and healthy. The immediate answer is stimulus checks.
Though safety measures have been put in place to protect American citizens and decrease the spread of the virus, the closing down of businesses has resulted in a stagnant economy and left many without income.
In order to fight economic stagnation while also fighting the spread of the virus, the government issued a $2.2 trillion stimulus package which includes checks of “$1,200 for individual or head of household filers, and $2,400 for married [couples] filing jointly,” according to the IRS. Families are also eligible to receive $500 per child under age 17.
Individuals who file as single and earn between $75,000 and $99,000 as well as joint filers who earn between $150,000 and $198,000 will receive a reduced amount. Singles who earn above $99,000 and joint filers who earn above $198,000 will not receive a stimulus check.
College students who are claimed as a dependent on someone else’s tax returns are also left out of the stimulus package, regardless of if they used to have a job.
Stimulus checks began going out this week, with 80 million people projected to receive their check by Wednesday. According to the IRS, taxpayers who have already filed their tax returns for 2019 or 2018 do not need to perform any further action in order to receive the deposit.
The package also includes $367 billion in loans for small businesses, more than $130 billion for hospitals and $150 billion for state and local governments.
The goal of the stimulus checks is to reinvigorate a stagnating economy and provide American citizens with the means to pay for necessities such as rent and food while temporarily unemployed, although some believe the amount is not enough.
Both Republicans and Democrats hope to expand the stimulus bill, but disagree on where the money should go.
According to The New York Times, “Republicans in Congress want to quickly pass a $250 billion expansion of the small business loan program set up under last month’s stimulus bill … But Democrats have refused to get behind the expansion if it doesn’t include additional money for state and local governments, hospitals, food assistance and coronavirus testing.”
The stimulus package aims to keep the economy afloat in this uncertain time, since when the economy will rebound is still unknown. The reopening of the economy is a top priority for President Donald Trump, and it will likely take place in small stages. Many state governors are working towards a slow reopening while still being cautious of the spread of the virus.
Though extensive planning and research is being done to figure out the best time to start reopening the economy, Jim Tankersley from The New York Times believes economic strain will persist beyond the end of lockdowns.
“Until Americans feel confident that their risks of contracting the coronavirus have fallen — either through widespread testing or a vaccine — many economists and business owners say there will be no rapid economic rebound,” Tankersley wrote.
If Americans continue with a mentality of caution, as Tankersley suggests, it’s likely economic revival will be a steady climb uphill, even with the stimulus checks.
As of now, Americans who have received their checks are spending the money on essentials such as food, bills, gasoline and pharmacy related purchases, according to The Washington Post. People are also using the money to pay off debt or college fees, while others are choosing to save the money.
While Americans remain in lockdown, the stimulus checks will provide a source of income for the temporarily unemployed and provide help to struggling businesses and hospitals.
Until the economy reopens, Americans will have to make the most of the money they receive to keep the economy afloat and proceed with caution as the effects of COVID-19 continue to unfold.