Congressional lawmakers and members of the Trump administration’s economic team will convene on Friday to launch negotiations toward racing to draft a $1 trillion-plus economic package to rescue Americans from financial peril amid the coronavirus outbreak.
GOP introduces a financial aid plan for Americans
Senate Majority Leader Mitch McConnell (R-KY) has introduced a GOP financial stimulus plan that will send direct checks to taxpayers and businesses in the US due to income loss caused by the coronavirus outbreak.
The 247-page proposal put forth by McConnell is called the CARES Act. Lawmakers are committed to working through the weekend to fast-track the legislation.
Amount per individual, couples, and families with children
Under the proposed GOP stimulus plan, it will provide financial support of $1200 per person and $2400 per couple. Additionally, there will be $500 payments for each child.
Hypothetically, a couple with two children would receive $3400.
Unlike previous plans that called for Americans receiving two checks, previously proposed by the Treasury as being delivered in April and May, under McConnell’s GOP plan, the checks would be a one-time payment and payments would be income-based to ensure aid for those most in need.
Qualifications for individuals
Qualifying for the financial aid would phase down according to adjusted gross income levels, with a threshold of $75,000 for couples and $50,000 per individual. The minimum payment is $600.
The IRS will determine income based on a taxpayer’s 2018 tax return, or their 2019 tax return in cases where there is no 2018 tax return.
Social Security retirement benefits, as well as certain compensation and pension benefits paid to veterans, are all considered qualifying income.
Tax rebate for individuals
A tax rebate is also included, which will be reduced by $5 for each $100 of a taxpayer’s income that exceeds the threshold.
Accordingly, the amount would be reduced to zero for single taxpayers with incomes exceeding $99,000 or $198,000 for joint filers.
Financial aid for businesses
The Republican stimulus plan is asking for a total of $300 billion to be allocated toward small businesses in order to keep idled workers on the payroll.
Businesses will also be allowed to defer payment of the 6.2% employer payroll tax.
The plan also seeks $208 billion in loans to be made available to the airlines and other industries.
Breaking down the financial packet loan packet to industries, $50 billion will be allocated directly to commercial airlines, $8 billion to air cargo carriers, and $150 billion for other eligible businesses.
All of the business loans must be paid back. However, the proposal includes a specific provision that will allow the U.S. Treasury secretary to “participate in the gains” of the companies that received federal aid, through stock options or other financial instruments.