2020 Economic Stimulus Plan
For both the CARES Act and the Take Responsibility for Workers and Families Act, eligible individuals are defined as taxpayers making between $2,500 and $75,000 or couples making less than $150,000 according to their 2018 tax return. The amount received for these taxpayers would be $1,200 under the CARES act or $1,500 under the Take Responsibility for Workers and Families Act. Details of each Act have been provided below.
- Eligible small businesses in the CARES Act are defined as any private or public non-profit organization that employs less than 500 employees.
- Businesses will be entitled to receive a loan between March 1, 2020, and December 31, 2020, if they have "business concerns" as defined in the United States Small Business Act.
- Loans must be less than "the average total monthly payments by the applicant for payroll, mortgage payments, rent payments, and payments on any other debt obligations incurred during the 1-year period before the date on which the loan is made" or $10 million USD.
- The loan can be used for employee salaries, mortgage payments, rent (including rent under a lease 2 agreement), utilities, and any other debt obligations that were incurred before the covered period.
Individuals and Families
- Relief shall be provided to taxpayers described as an individual that "has qualifying income of at least $2,500, or has net income tax liability which is greater than zero, and gross income which is greater than the basic standard deduction."
- The amount credited will be reduced by 5% of the taxpayer's income if they make more than $75,000 per individual or $150,000 if filed jointly. Relief will not be below $600 for individuals of $1,200 if filed jointly. In addition, individuals will receive an additional $500 per child claimed on their tax return.
- Taxpayers with income between $2,500 and $75,000 for individuals or $150,000 for those filing jointly will receive $1,200 per individual or $2,400 if filed jointly.
- The Act will use 2018 tax return unless the individual did not file in 2018 in which case they will use their 2019 tax return.
- The Act states that money will be distributed "as rapidly as possible" defined as no longer than 15 days after the enactment of the CARES Act.
- The act does not define how the money will be distributed.
- On Monday, March 23, 2020, the Democratic House introduced a new proposal due to the fact that the Republican proposal is currently stuck in limbo because of two failed votes.
- The new legislature is valued at $2.5 trillion USD.
- This bill was introduced as the "Take Responsibility for Workers and Families Act."
- This act will include additional legislation to protect individuals, education, aviation personnel, local governments, postal workers, unemployed workers, and hospitals.
Individuals and Families
- The new legislation would distribute $1,500 to individuals who make less than $75,000 and taxpayers who filed jointly who make less than $150,000. All other individual qualifications and limitations will remain the same as the CARES Act.
- Under this legislation taxpayers would be defined as anyone with an individual taxpayer identification number, retirees and unemployed individuals.
- In addition, it would waive $10,000 in federal student loan payments.
- To assist in debt occurred due to the coronavirus, this would also eliminate cost sharing for coronavirus treatment and vaccinations for both insured and uninsured individuals.
- Child care assistance would be provided for health care and emergency professionals.
- The current bill does not define if this will be dependent on tax payers 2018 tax returns or how or when they will be dispersing funds.