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The Unemployment
Why would the proposal for a second $600 stimulus check be successful

Why would the proposal for a second $600 stimulus check be successful?

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Legislators are negotiating a smaller economic stimulus package. America’s top legislators are looking at a smaller economic stimulus package that could be delivered this month and a larger package by 2021.

Negotiations on a new package to help the country cope with the coronavirus pandemic have been held up by the difference between the legislators. Approval of a second stimulus check of up to $600 for those who are eligible this year and a new economic stimulus package that includes direct aid could return to the congressional conversation after President-elect Joe Biden takes office on January 20.

There is growing support in Washington to pass a second stimulus check, including President Donald Trump’s proposal that is pushing Republicans in the Senate to send a $600 payment by the end of the year.

In case Congress cannot agree on a direct payment before the end of December, Biden and Congressional Democrats have committed to reviewing a broader economic stimulus package for the pandemic that could come after the results of the January 5 runoff in the Georgia Senate that will define which political party will have control in the Senate.

If a second payment of a smaller stimulus check becomes a reality in this last month of the year, it could suggest an economic stimulus package that would include a new payment in 2021 since there is a strong commitment by some legislators.

What prevents a direct payment?

The bipartisan $908 billion proposal says a stimulus payment could cost too much. In late March, the Internal Revenue Service (IRS) began sending out 160 million payments totaling $270 billion, a budget that represents approximately 30 percent of the bipartisan proposal.

As of September, the IRS was still looking for more than 9 million people to whom it still owed the first CARES Act stimulus payment, further raising the total cost.

If the legislators reach an agreement by including another $280 billion in the bipartisan proposal, it would bring it to more than $1 trillion, which is higher than the Republicans’ proposal.

Without an economic package, the last federal aid will expire on December 31, allowing limited protection for tens of millions of Americans who are fed and living under a roof for fear of eviction for lack of payment.

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