Tax Foundation made the estimate in which it also used data from the Internal Revenue Service (IRS).
A Tax Foundation estimate reveals that, if the $1,400 stimulus check being pushed by the Joe Biden Administration were approved, the average household income would be $2,273 with 94.6% of taxpayers eligible to receive the payment.
The estimate by the Washington, DC-based entity, which evaluates U.S. tax policies at the federal and state levels, is based on data from the Internal Revenue Service (IRS), the agency that leads the process of distributing so-called “Economic Impact Payments.”
In contrast, the Republicans’ plan to reduce the base amount to $1,000 would represent on average $982 per household and would translate to 74.3% of taxpayers eligible for the payment.
The foundation’s analysis looks primarily at two points in the Democratic president’s proposal: the higher base amount for eligible individuals and more money per dependent.
The Biden Plan
The Biden plan (American Bailout Plan) would award $1,400 to each individual and the same amount per dependent.
If income eligibility remains the same as under the previous two stimulus bills, individuals earning $75,000 or less and couples who jointly report incomes up to $150,000 would receive the full payment. The payment phases out $5 for every $100 above the $75,000/$150,000 thresholds.
The Republican counterproposal
Under the Republican counterproposal, which has very little chance of succeeding in the federal Congress, the base amount per individual would be $1,000 and $500 per dependent.
However, the income level for eligibility would be lowered to apply to those earning up to $40,000 annually, and $80,000 in the case of married couples.
The threshold for phasing out would be reached more quickly, with amounts of $50,000 for individuals and $100,000 per couple.