'Amid the discussions about the potential second round of stimulus payments that Americans are eagerly waiting for, Senator Edward J. Markey is calling for a monthly payment to be distributed to any individual who makes less than $120,000 per year until the coronavirus pandemic ends.
Markey joins Kamala Harris and Bernie Sanders in introducing the Monthly Crisis Support Act which will provide monthly financial support to eligible citizens, as reported by The Sun.
A monthly recurring payment
The senator said that working families and individuals who have lost their jobs due to the coronavirus pandemic should be able to rely on their government to help them through the economic crisis the country is experiencing.
The proposed bill would provide a direct cash payment amounting to $2,000 to each individual that is eligible for the financial aid. The continued support would last until three months after the coronavirus pandemic is considered at its end. It will also distribute an additional $2,000 for every dependent for a maximum of three regardless of their age.
Markey added that every United States resident would be able to receive a payment to support them in the economic crisis the coronavirus pandemic caused.
The Monthy Crisis Support Act would have eligibility rules similar to the CARES Act; however, it would have an increased income limit. According to Forbes, the lower limit has been raised, but the phase-out has been sped up as well.
The proposed act would also provide payments to undocumented immigrants as the senators that are spearheading it made it so they would only need their Individual Taxpayer Identification Number (ITIN).
Markey noted that the most effective and efficient method of assisting the people is by the use of a recurring monthly payment. The situation is true, especially for those who have been severely affected by the economic downturn.
The senator added that the proposed bill would provide approximately $600 billion per month in financial assistance to American families which is more than twice the amount the CARES Act provided.
Three months since the legislation became law; however, more than 1.5 million citizens have filed unemployment claims to receive their benefits.
How likely is it?
Although the proposal would provide additional support to Americans, the possibility of it being approved is unlikely due to its sheer cost. Forbes analyzed the amount that would be needed to distribute to all eligible Americans.
Numbers from the Social Security Wage Statistics show that 90.67% of all employed Americans earn less than $100,000 per year.
Taking only the above number into the calculations, a total of approximately 152 million citizens would be eligible for the proposed bill.
It was figured out that every month, the United States would need to supply $304 billion in total payments. The number does not take into consideration individuals who are unemployed and pay into Social Security.
President Donald Trump had previously shared his support for a stimulus check only if it included some sort of payroll tax waiver. The massive cost that the Monthly Crisis Support Act would need makes it highly unlikely to be passed.
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