Our mission to help you navigate the new normal is being driven by subscribers. Subscribe today to get unlimited access to our journalism.
The stimulus package that came into effect in March gave the Americans a boost so that they could stay afloat during the pandemic. But as the pandemic continues, legislators on Capitol Hill are feeling the heat of approving another round of stimulus checks.
While parsing Trump's feelings about more checks was a guesswork, Senate majority leader Mitch McConnell opened the door for more incentives on Monday. But he also hinted at lowering the income threshold.
"I think the hardest hit people are making about $ 40,000 a year or less," McConnell told reporters when asked about another round of checks. "Many of them work in the hotel industry … so that could be part of it."
The first round of stimulus checks was worth up to $ 1,200 for individuals or $ 2,400 for married couples and $ 500 for each qualified child. This amount decreased for adjusted gross income above $ 75,000 per person or $ 150,000 per qualified couple. Individuals earning more than $ 99,000 (or $ 198,000 per pair) were not eligible for the first round of checks.
If Congress approved a second stimulus check only for workers below $ 40,000, it would mean that millions more would be left out this time. The median US household income is $ 61,937 and the median income is $ 31,048, according to the US Census Bureau. This means that about half of American workers or households could be excluded.
Since the final round of stimulus testing was based on your previous year's tax returns, millions of newly unemployed Americans could be left out. The June United States Department of Labor Statistics job report, which found an unemployment rate of 11.1%, did not break down unemployment by income level. However, a Fortune SurveyMonkey survey of 4,109 adults in the U.S. between May 20 and 26 found that 12% of workers earning between $ 50,000 and $ 99,000 lost their jobs and 7% of workers who earn over $ 100,000 said they were unemployed. Among those earning less than $ 50,000, 24% said they had lost their jobs.
In May, the democratically controlled House of Representatives passed the $ 3 trillion HEROES Act, which would allow US households to pay up to $ 6,000 in direct economic payments. But this bill never went anywhere in the Senate. Just last week, President Donald Trump expressed openness to do another stimulus check, but didn't give details.
The Fortune-SurveyMonkey May survey found that 54% of adults in the United States support a second round of control. This is far less support than in the first round: A survey by Fortune-SurveyMonkey between March 23 and 24 showed that 85% of the United States supported the federal government in sending a one-time stimulus check.
And a second round of stimulus checks doesn't have the same bipartisan support. 85% of Republicans rated the first one-time check positive, compared to 87% of Democrats, according to our March poll. However, support for a second incentive payment is 40% and 67% for Republicans and Democrats.
More needs to be read Financial coverage from capital::
- If Ernst & Young's auditors had done this, they might have exposed Wirecard's $ 2 billion fraud years earlier
- After overbooking flights in a pandemic, American Airlines is now paying passengers for the exit
- Should Facebook investors end the boycott of ads – or pay off?
- Safelites CEO in managing the company through the crisis – and returning sales to pre-pandemic levels
- Former Honeywell CEO David Cote has just written one of the best guides for running a business