Legislators want to raise enough money from business taxes to fund the $1,400 stimulus payments, so two more stimulus checks may be on the way.
Lawmakers Support Two New $1,400 Stimulus Checks
In a recently published article in WBEX News, Democrats are about to support not one, but two more $1,400 checks in the near future, if they so choose. Following a recent vote in the House of Representatives to approve a $3.5 trillion budget plan, the party in charge of both Congress and the White House is now ready to move on to a social spending program.
Taxes, for example, would be a significant source of financing for this new social spending program, with President Biden pushing for a 28 percent corporate tax rate increase. Democrats also want to undo some of President Trump’s tax cuts from 2017.
According to Kyle Pomerleau, a tax specialist at the American Enterprise Institute, the tax proposals being discussed by Democrats might generate $800 billion. This is about enough to fund two additional $1,400 stimulus payments, according to a published report in NBC News.
Millions of Americans May Receive an Average of $6,600 Stimulus Checks
Nasdaq reports, according to a Tax Policy Center study, the coronavirus legislation will provide an average of $6,660 in stimulus money to households with children. In 2021, this money will be given to families, with a portion of it yet to be supplied.
Some families, though, will be given extra money. Approximately 500,000 low-income families with two or more children in the United States will get financial help totaling approximately $10,000. This will more than double the annual income of some of the poorest Americans.
Who Will Get the Benefits?
Those with fewer children, on the other hand, will get less money since dependent payments would be reduced. They will also not benefit as much from the higher child tax credit. The typical married couple with no children and a household income of less than $30,000 will get $3,041.
Higher earners are expected to get less help since both the child tax credit and stimulus payments have income limitations. The entire amount of stimulus money is anticipated to go to single taxpayers with incomes under $75,000 and married couples with incomes under $150,000.
Meanwhile, Republicans argue that the plan is overburdened with wasteful expenditure and tax increases. Senators Ron Wyden, Mark Warner, and Sherrod Brown previously released a draft framework aimed at removing incentives for companies to move their operations outside of the United States.