Sunday, September 26

Why would a fourth stimulus check be for fewer people?

IRS continues with the distribution of the third stimulus check.

AzamKamolov / Pixabay

More than 80 Democratic congressmen are pushing for a fourth stimulus check, but there is no concrete project, in addition to the president’s government Joe Biden is focused on its infrastructure plans, families and now on the 2022 budget.

In a remote case that a payment similar to the $ 1,400 US Rescue Plan (ARP) was contemplated by the House and Senate, the recommendation of experts is to focus it on the poorest families.

“If Congress wanted to further reduce poverty or provide additional resources more broadly, the additional payments could do it.”, indicates a report from Tax Policy Center, which has been taken up by congressmen who have sent letters to President Biden to support a new round of checks. “We modeled two options for additional payments of $ 1,400. One would start phasing out at lower income levels, what we call the faster removal pay. This payment would provide targeted relief for people with slightly lower incomes and would include everyone, rather than just citizens. “

In other words, the project should also include undocumented immigrants.

Experts add that the application of the funds would be phased out, so that each American would receive different funds considering their income, as happened with the CARES Act and the ARP, although the eligibility line would be lower, not the $ 75,000 dollars per year per person.

“The other payment option that we modeled would replicate the ARP payment thresholds and limit citizens’ eligibility,” they point out. “As long as payments begin to be phased out above the poverty level, they will have a strong anti-poverty effect.”

In your analysis “How Additional Cash Payments Would Reduce Poverty”, experts highlight that the African American and Latino communities would be among the most benefited with extra payments.

“We estimate that a single additional payment could reduce poverty in 2021 from 13.7 percent to between 6.4 and 6.6 percent, depending on whether the payment is available to everyone in the US or restricted to citizens.”, advance.

Another additional payment, namely a fifth stimulus check, could reduce poverty rates to between 4.9 and 5.2 percent, depending on the payment design.

Who write the report, Elaine Maag Y Kevin Werner, warn that without extra payments 10.5 percent of non-Hispanic black people will be in poverty, 6.4 percent of non-Hispanic white people will be in poverty and 13.3 percent of Hispanics will be poor.

However, that can be significantly reduced, they advance, through a payment that discards more quickly those with higher incomes per year, even the effect would be greater among Hispanics, if the undocumented are considered.

“Including everyone in the US in payments rather than restricting them to citizens has the greatest effect on Hispanics”Maag and Werner note. “(It) would reduce the Hispanic poverty rate from 13.3 percent to 9.0 percent.” A fifth payment, which is marked as “a second faster elimination payment” would reduce that poverty rate to 6.3 percent among Hispanics.

Despite these reports, the Biden Administration seeks to reduce poverty from other angles, such as the American Jobs Plan and the Plan for American Families, which would have investments in excess of $ 3 billion.

Even President Biden’s new budget bill it contemplates several additional programs to reduce poverty and seek racial equity, socially and economically.

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