Plan for 'targeted' $1,000 stimulus checks would see '29M' fewer Americans getting relief due to lower income threshold
THE Republican plan for 'targeted' $1,000 stimulus checks could block 29 million Americans from getting relief.
The counterproposal on Coronavirus relief could exclude middle and upper-income earners who would qualify for stimulus payments under President Joe Biden's plan.
The Republican plan would cut off aid for those earning more than $50,000 a year and couples earning more than a combined salary of $100,000.
Around 78 per cent of families would qualify for Coronavirus aid, whereas 95 per cent would be eligible under Biden's proposal, say analysts at The Penn Wharton Budget Model.
However, these figures are preliminary as no formal legislative text is available currently.
The GOP relief plan would provide the full payments to those earning less than $40,000 a year and couples earning less than $80,000, before being slowly phased out altogether.
Biden has proposed Americans are given $1,400 in the next round of stimulus checks, which could be sent out next week.
The President turned down Republican lawmakers' offer of $1,000 stimulus checks.
His rejection of the proposal came after he was accused of reneging on his election promise to deliver $2,000 checks.
The $1,400 is for people who are already getting $600 under the package approved by Congress in December.
The lower income threshold is to exclude those who have not been affected financially by the pandemic and targeting those who support the most.
In the next income bracket, around 1 per cent of tax filers earning between $110,700 and $157,000 would receive money from the Republican plan – compared to 75 per cent of them under the Biden plan, according to the Tax Foundation.
The President's plan would cost $465billion, while Republicans would cost an estimated $220billion.
If the Senate vote on Biden's $1,400 stimulus checks, they could be sent out as early as next week.
Senate Majority leader Charles Schumer has urged Republicans to "cooperate" as the initial procedural vote goes ahead this afternoon.
"The Senate is going to move forward this week with the process for producing the next bold rescue package.
"The Senate will vote to proceed on the budget resolution this afternoon," Schumer said.
The budget resolution is expected to pass on Wednesday.
According to government data released on January 28, the U.S economy contracted 3.5 per cent last year – it's largest annual drop in 74 years.
Senator Ron Wyden, a Democrat from Oregon told reporters earlier last month: "Last year was the worst year for the U.S. economy since World War II — that alone should send a very powerful message to Senators who are getting ready to debate COVID legislation, and caution them against going small."
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