Two more stimulus checks might be on the way, as legislators aim to generate enough money from corporate taxes to cover the $1,400 stimulus payments.
Democrats are set to draft the spending package after accepting President Joe Biden's $3.5 trillion budget proposals following two earlier rounds of payments in March and December of last year. Meanwhile, since July 15, two of the six child tax credit payments have been made.
These are a new type of stimulus check, putting a few hundred dollars extra in parents' pockets every month until the end of the year. The third stimulus check, worth $1,400, has been questioned as to whether it will be the only one we receive this year, BGR reported.
Democrats may support two new stimulus checks
However, there is growing suspicion that Democrats may soon support not one, but two additional $1,400 checks - if they so choose. The party in control of both Congress and the White House is now ready to move on to a social spending blueprint, after a vote in the House of Representatives in recent days to adopt a $3.5 trillion budget proposal.
Tax reforms would be a major source of funding for this new social spending program, with President Biden, for example, advocating a 28 percent corporation tax rate hike. Democrats also seek to reverse President Trump's 2017 tax changes, at least in part.
A tax expert at the American Enterprise Institute Kyle Pomerleau told NBC News that the tax measures being considered by Democrats might raise $800 billion. That's about enough money to cover a pair of new $1,400 stimulus payments.
The federal government delivered more than 171 million stimulus checks between the enactment of the $1.9 trillion stimulus package in March and late July. To be more exact, this was the third such relief check, with a total value of more than $400 billion.
"My Republican colleagues are telling everyone that Bernie Sanders and the Democrats are going to raise taxes," Bernie Sanders told the crowd at an outdoor amphitheater in West Lafayette, Indiana, on Friday. The Vermont senator was highlighting the differences between the two parties, pointing out that in past years, House Republicans have backed tax cuts for the rich.
Per The Sun, Sanders' case is based on a budget proposal that includes universal pre-kindergarten and community college tuition-free. It also increases health-care coverage through Medicare, provides routes to citizenship for millions of illegal immigrants, and pushes states to pass labor-friendly legislation.
Republicans, on the other hand, claim that the proposal is bloated with unnecessary spending and tax hikes. Senators Ron Wyden, Mark Warner, and Sherrod Brown have previously produced a draft framework targeted at eliminating incentives for businesses to relocate their operations outside of the US.
Americans may receive an average of $6,600 in stimulus payments
According to a Tax Policy Center analysis, families with children will get an average of $6,660 in stimulus money as a result of the coronavirus legislation. This money will be distributed to families in 2021, and part of it has yet to be provided, as per Nasdaq.
In 2021, a married couple with two children will get an average of $6,660 in stimulus payments. This money is obtained from two main sources:
- $1,400 in stimulus checks for each adult and dependent
- Expanded Child Tax Credit: $3,600 for children under the age of six, and $3,000 for children aged six and over.
However, some families will receive more funds. Roughly 500,000 low-income families in the United States with two or more children will get financial assistance worth around $10,000. For some of the poorest Americans, this will more than quadruple their yearly income.
Those with fewer children, on the other hand, will receive less money since there will be fewer dependent payments. They won't get as much help from the increased child tax credit, either. The average married couple with no children and a household income of less than $30,000 will get $3,041 in stimulus relief.
Because the child tax credit and stimulus checks both have income limits, higher incomes are likely to get less assistance. Only single taxpayers with incomes under $75,000 and married couples with incomes under $150,000 are expected to get the full amount of stimulus funding.
Related Article: Child Tax Credit: Have You Been Missing Out on The Stimulus Payments? There's Still Time For You to Sign Up!
