2020 Economic Stimulus Plan

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Part
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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.

CARES Act

Small Businesses

  • 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.

Alternative Legislation

Overview

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.
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