STIMULUS PAYMENT ON DEBATE BY GOP AND DEMOCRATS

As the moratorium on evictions ended and a $600 unemployment boost will last until the end of July, the Internal Revenue System(IRS) is set to pay the second payment of Federal Stimulus Checks to the United States of America taxpayers. The U.S. Congress proposes that this batch of the stimulus package must include payments for the qualified individuals and families.

President Donald Trump backs off with his Social Security Payroll Taxes cut offer because it will take time to process. He is eager to focus on economic impact payments as this can provide financial aid to workers quickly.

The guidelines and details of the second IRS stimulus payment are still under debate. The U.S. Republican-led Senate has returned in session at Washington D.C., and they have until August 7, 2020, the last day of their current session to pass the bill. They are also determined to unveil a $1 trillion economic relief package taken after the first CARES Act. The first CARES Act funded American Taxpayers with unemployment benefits, IRS’s federal stimulus checks, and SBA’s small business loans.

Reports hint that the Republicans will limit only to lower-income earners, with income-cap of $40,000.00 annually to be the recipients of the second stimulus check.  Still, eligibility of who will receive the second payment, the amount of the new stimulus package, and when the IRS will release these stimulus payments are in limbo, as negotiations and debates set in the coming days.

Given the timeline of getting the bill passed and approved, Americans would not expect the bill enacted by the end of July. If this happens, Americans who depend on the $600 unemployment benefit will be affected.  According to Kevin McCarthy, House Minority Leader, the soonest date they could finish is in the first week of August, the same deadline set by Senate Majority Leader Mitch McConnell.

The legislation of this bill will take time, and we can expect a heated debate between Republicans and Democrats. Meanwhile, the Americans await its release and cases of COVID-19 surged in numbers across the country.

Senate Majority Leader’s original schedule of release was July 23, 2020, Thursday morning but was delayed and moved to release the proposal by next week. Democrats are seeking more, and Republicans need to be in one stand to pass these $1 trillion COVID-19 and start negotiations with the Democrats.

The IRS can begin sending checks in August if the bill for the second round of stimulus checks gets approved by the first week of August. A proposal in Washington askes legislators to model the payment set up on the First Cares Act. Speculations of August 26 release date are in a loom, following the pattern of approval and release of the first stimulus payments. Given,  this is the second time the IRS will send out the payment, sending out will move faster since the mechanisms and tools for receiving the payments are existing. Highly debated qualifications and eligibility are a few of the factors seen to delay or speed up the process.

COVID-19 is far from over, and the Government is grasping hard to get by with budgeted spending at $4.79 trillion half of the year, this was more than the estimated $3.706 trillion in revenue.