New legislation introduced by Senate Majority Leader Mitch McConnell could provide as much as $1,200 per person and $2,400 per couple.
Coronavirus Keeps Damaging the Economy
Fox News acquired a draft of the legislation, which states that the minimum payments are $600, with aid being adjusted depending on gross income thresholds of $75,000 for individuals and double that for couples, with additional $500 payments for each child.
The amount, however, is not equal for everyone though. Taxpayers, whose income exceeds the threshold, will have it reduced by $5 for each $100 in excess, going all the way down to zero for those with incomes over $99,000 individually and $198,000 for joint filers.
Income is to be determined by the IRS based on 2018 or 2019 tax returns, in case there is no 2018 return for some taxpayers, with earned income, Social Security retirement benefits, compensation, and pension benefits to veterans all falling under qualified income in an effort to “ensure relief gets to low-income seniors and disabled veterans.”
Additional Provisions in the Relief Legislation
The legislation would also “waive the 10-percent early withdrawal penalty for distributions of up to $100,000 from qualified retirement accounts for coronavirus-related purposes.”
The proposal aligns perfectly with Trump’s idea of quickly sending checks to Americans to relive some of the damage caused by the virus.
The plan also features provisions aimed at helping small businesses, alongside a delay of payment for employer payroll taxes, a delay of estimated tax payments for corporations, and modifications for net operating losses. The bill would also provide $208 billion in loans and loan guarantees to distressed sectors, $50 billion for commercial airlines, $8 billion for air cargo carries, and $150 billion for all other eligible businesses. However, the loans will eventually have to be paid back.
Does the Bill Have Bipartisan Approval?
“These are urgent discussions, and they need to happen at the member level,” McConnell said, hoping to win bipartisan support for the bill, although some Republicans disagree with the plan, and Senate Minority Leader Chuck Schumer complained that the GOP sought no input from Democrats and that they had not even seen the bill yet.
Two coronavirus relief bills have already been signed by President Trump, aimed at providing paid sick leave, unemployment help, and free testing for the virus, as well as one to prop up the health care system.