We have some important updates for the next stimulus package, the second stimulus check, and the $600 additional unemployment insurance benefit programs.
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Second Stimulus Check Update:
Treasury Secretary Steven Mnuchin yesterday said there is a “strong likelihood” that another relief bill will be needed. He said “We’re going to carefully review the next few weeks, I think there is a strong likelihood we will need another bill, but we just have $3 trillion we’re pumping into the economy. We’re going to step back for a few weeks and think very clearly how we need to spend more money and if we need to do that,”
The step back and wait part is what we’ve been hearing all along. There’s still hundreds of billions of dollars from the original Cares Act that has yet to be spent. Even if they were rushing to get a stimulus out we probably wouldn’t see anything for close to 2 weeks.
The interesting part is him saying there is a strong likelihood of another stimulus. It seems more and more people are agreeing that we need an additional package as time passes.
The nine week jobless claim rate has been updated today and we are now at 38.6 million people out of work because of the pandemic.
Here’s some more quick stats according to theHill.com:
-47.5 percent of all households reporting job losses.
-More than half of households with incomes under $50,000 say they have seen their incomes slide
-Ten percent of Americans said they had been unable to pay rent or their mortgages on time, and one-fifth say they had little or no confidence they would be able to pay next month’s rent or mortgage.
-The least affected are older working citizens, those with bachelor’s degrees or higher, and those who live in Rural areas where the pandemic was slower to reach.
This news is coupled with the next piece of news from Wednesday.
McConnell stated that the $600 boost in unemployment that was a part of the original Cares Act likely will not be on future bills. Their major issue being that they feel the current unemployment stimulus plan creates a dis-incentive to work. This is especially an issue for individuals who have been offered back work but refuse.
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This presentation does not constitute legal or tax advice. It is provided solely for informational and educational purposes and does not fully address the complexity of the issues or all the steps businesses must take under applicable laws. You should consult your professional advisers regarding your individual situation. Max Maher undertakes no obligation to update the information in this presentation, and no representations are made that the content is error-free.
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