Don’t Worry About This $ 2,000 Per Month Incentive Plan
While many Americans continue to wait for their coronavirus relief checks or unemployment benefits , there is a plan in the works to provide another relief payment – and this one will be monthly.
Senate Democrats have introduced a bill that would pay most Americans $ 2,000 a month during a pandemic.
Anyone who earns up to $ 120,000 a year will receive a monthly payment of up to $ 2,000, and married couples are eligible to receive up to $ 4,000 a month. Heads of households with an income of less than US $ 150,000 are also eligible.
A phase-out similar to what was in the original coronavirus relief package will happen for those earning more than $ 100,000. If you have children, you can get $ 2,000 per child per month (up to three children, please).
The bill, called the Monthly Economic Crisis Support Act, was introduced by Senators Kamala Harris (California), Bernie Sanders (Virginia) and Ed Markey (Massachusetts).
“The CARES Act gave Americans an important one-off payment, but clearly that was not enough to meet the needs of this historic crisis,” Harris said in a statement on her website. “The bills will continue to come in every month during the pandemic, and therefore they need to help from the government. “
The plan will be retroactive until March and will include a monthly payment during the pandemic and for three months after. It will be available to every US resident and will not require the latest tax return or Social Security number to determine eligibility.
The bill also prohibits debt collectors from collecting payments from individuals.
While states are starting to announce opening plans, it will certainly have a long-term impact on the economy. Today’s employment report alone, which announces a staggering unemployment rate of almost 15% , indicates that it will take some time to accelerate re-hiring and stabilize income.
But while the argument that a lump sum of $ 1,200 per person isn’t enough to help the U.S. economy weather the international pandemic, don’t expect the law to gain traction quickly. The legislation that became the CARES Act was proposed in early March, revised several times before it was passed, and only came into effect at the end of that month. And although economic payments began to be sent to taxpayers in mid-April, adoption has progressed more slowly than many recipients would like.
Other economic measures, such as the abandonment of the federal student loan , took some time to gain a foothold and went through several iterations. Some borrowers still cannot get clarifications from their credit institutions.
So don’t start daydreaming about spending your $ 2,000 a month just yet. Before any government agencies start working on the logistics of sending monthly cash, the bill has to go through 535 members of Congress who you know aren’t best friends right now?
This post was updated on 5/11/2020 to correct the situation represented by State Senator Bernie Sanders (Vermont).