Call Me Stormy

Next Proposal: $2,000 Checks

As Congress puts the finishing touches on the nation’s fourth stimulus package, efforts are already underway on the next round of relief. Stunningly, the proposal includes bumping up individual stimulus checks from $1,200 to $2,000 for the next six to 12 months. All Americans 16-years-old and older making less than $130,000 are eligible for the handout. Calculating the proposal for just one round of  payments (one month), the cost skyrockets to $700 billion. Multiply that by six months and it balloons to $4.2 trillion. This is as close as our country has ever come to a universal basic income. Chicago CPA Brian Kim says he believes the more practical way to deal with the proposal is through a month-by-month basis, or three months out at the most. “It’s a wait-and-see approach to see if it’s necessary or unnecessary, because if it was six months at that rate, the cost would be $4.2 trillion and that wouldn’t include additional assistance (for businesses). Everybody needs assistance.” Here are more details from ClearValue Tax.