The Democrats’ proposal to lower the income ceiling for the third round of stimulus checks could prevent nearly 12 million adults from receiving them, a new analysis shows.
President Biden has agreed to limit eligibility for coronavirus aid payments to $ 1,400 so that people who earn more than $ 80,000 a year do not receive one.
Individuals earning up to $ 75,000 a year would still receive the full amount under the proposal made by moderate Democratic senators, while payments would decrease for those earning between $ 75,000 and $ 80,000.
About 200 million adults would receive stimulus checks under the new Senate plan, about 11.8 million less than under the House of Representatives’ $ 1.9 trillion COVID-19 relief bill this week last year, which had an income limit of $ 100,000, according to estimates by the Institute of Taxation and Economic Policy.
The changes would also result in about 4.6 million fewer children benefiting from aid payments, the think tank found.
However, the new proposal “would make no difference” to the vast majority of Americans because it reduces eligibility to the top of the income scale, according to Steve Wamhoff, the group’s director of federal tax policy.
“Among the poorest 60% of Americans, those most in need of help, both versions of the proposal would benefit 100% of adults and children,” said Wamhoff in a blog post on Wednesday.
Overall, 86 percent of American adults and 85 percent of children would receive a financial incentive under the new Senate proposal, compared with 91 percent of adults and 90 percent of children under the bill approved by the House, says the institute .
The huge pandemic aid package is expected to pass the Democratic-controlled Senate this week, with little or no Republican support. The Chamber would have to approve the changes before sending it to Biden’s desk.
Democrats aim to finalize the stimulus bill by mid-March, when supplemental unemployment benefits and other major relief programs for COVID-19 are scheduled to expire.
Feds can start sending stimulus checks days after Biden signs the bill. People who submitted bank information to the Internal Revenue Service would probably get the money faster through direct deposit, while others would have to wait for a paper check.