As the majority of American citizens have received their first stimulus checks that were distributed amid the coronavirus pandemic, they are still patiently waiting for news regarding the second round of payments to be discussed by government officials.
Higher second stimulus check
While the possibilities of a second stimulus check are not guaranteed, if it does pass, the amount could see a significant rise of approximately 25.5% from the first one, as reported by Newsbreak.
Several lawmakers are at a standstill with their decision on whether or not to send out a second stimulus check. However, the US House of Representatives has passed a bill that will provide one to United States citizens.
The bill is named the Health and Economic Recovery Omnibus Emergency Solutions (HEROES) Act. The bill would provide not only a second stimulus check but also see a rise in the amount that would be distributed to millions of Americans.
The American Enterprise Institute states that the average amount that would be given to eligible taxpayers under the HEROES Act would become $2,170 from the CARES Act $1,729, more than a 25% increase.
The main reason for the increased amount is due to the HEROES Act offering more funds to dependents than the previous CARES Act, and it also expands on who it considers as a dependent.
Difference between the first and second
Under the previous CARES Act, dependents received $500 in stimulus payments, but under the new HEROES Act, each dependent would now receive $1,200 in stimulus.
The drawback, however, is that the number of dependents that would be given stimulus would be capped at three per household, making the total possible amount one household could receive to $6,000.
Another significant difference is that under the first stimulus, dependents were those who were aged 17 or under while the HEROES Act includes those aged 17 and up along with elderly relatives. An estimated 26 million more dependents would receive stimulus under the HEROES Act.
According to The Motley Fool, those who do not have dependents would receive the same amount of stimulus as the first one. This would include millions of American retirees who receive Social Security benefits who have no children of their own.
The income limits, however, remained the same from the CARES Act to the HEROES Act, working similarly to begin the phase-out by $5 for every $100 pass $75,000 for individual taxpayers, $112,500 for joint filers, and $150,000 for household heads. This means that those who earn a lot would not be benefited by the second stimulus check.
Congress would be the deciding body if the second stimulus check will come to Americans as it is the one who authorizes federal funds and not the US president. The next stimulus package will most likely be decided on by Congress next month before August comes.
The distribution of the second stimulus check, if passed, would probably require months to be received by all eligible taxpayers.
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