An introduction of President Biden’s coronavirus relief package is expected to occur between early and mid-March when the House of Representatives and the Senate will assemble to vote on the proposal they receive.
According to current information, the stimulus plan will likely include various support policies for individuals and businesses, including a federal minimum wage raise to the U.S. $15 per hour and additional unemployment benefits.
The policy that the majority of U.S. citizens will probably be the happiest about is the distribution of stimulus checks to individuals and families.
U.S. $1,400 if you earn less than U.S. $75,000
If the plan gets adopted, each person who earns no more than the U.S. $75,000 in adjusted annual gross income will receive the U.S. $1,400.
The same would hold for those who are the heads of households and receive up to the U.S. $112,500 per year.
There would also be the possibility for married couples to jointly apply for the checks.
In that case, each couple would be eligible for the financial support of the U.S. $2,800 if their annual salary does not exceed the U.S. $150,000.
For people whose annual salaries exceed these thresholds, the amount of support would gradually go down.
The upper limit would be set on individuals who receive more than the U.S. $100,000, heads of household with more than the U.S. $150,000, and married couples earning above the U.S. $200,000 per year.
The administration will likely face difficulties in passing the package, especially because the move would require a significant modification of the budget.
Some Congress members even suggested that thresholds should be set on significantly smaller amounts of the U.S. $50,000 and $60,000 to avoid large budget expenses.
The issue with an IRS
Another circumstance that may make the adoption of the plan more difficult is its potential collision with the regular tax-filing season.
The International Revenue Service (IRS), an agency that would be responsible for the administration of both the relief package and tax filing, faced a similar problem last year when the U.S. $1,200 stimulus checks were distributed to people.
Fortunately, IRS managed to lay down much of its burden by extending the tax filing deadline for three more months.
Additional alterations proposed this year, such as the option for the stimulus checks to be determined either by the returns from 2019 or 2020, would make the process much less complicated.
Based on the last year’s experience, the first round of stimulus checks is expected to come immediately after the introduction of the plan.
The first to receive would probably be those whose bank information has already been possessed by IRS.
While these people would likely receive their checks via direct bank account deposit, others would probably wait for several weeks to receive the mail containing their payments either in a form of checks or debit cards.