US President-elect Joe Biden has pushed for a USD 2,000 “stimulus check” to his fellow Americans, stating the current USD 600 coronavirus relief payment as a “down-payment”.
Addressing the United States’ worsening economic condition due to pandemic, Biden said he is gathering a multi-trillion dollar relief package which would enhance stimulus payments to USD 2,000 for Americans, send financial aid to city and state governments and also extend unemployment insurance.
A stimulus check is a check sent to a taxpayer by the U.S. government aimed to stimulate the economy by providing consumers with spending money. When taxpayers spend this money, it boosts the market and the retailers and manufacturers which in turn, boosts the nation’s economy.
US President-elect Joe Biden believes that the current sanctioned USD 600 stimulus check is too meager for the citizens and puts them in a tussle between paying rent or buying food. He demanded the stimulus check be raised to USD 2000. He backed the need for enhanced stimulus checks with consensus among financial and economic analysts.
The outgoing President Donald Trump had also raised the same issue and demanded a raise in stimulus check. Regarding the same, a bill was also passed in the House of Representatives earlier this December, however, it was blocked from enactment by the Republicans in Upper Chambers for they had the majority. With the Democrats now emerging victorious and having a majority both in the House of Representatives and in the Senate and Biden set to be sworn in as the 46th President of the US on January 20, there seems to be a smooth passway for the raised stimulus check to roll-out.
The proposal by Biden was strongly supported by the members of the Congress. Congressman Ro Khanna and Pramila Jayapal amongst many have also demanded a USD 2,000 stimulus check for Americans.
The bill is called the “Emergency Money for the People Act” and is aimed to provide USD 2,000 per month for at least six months or until the employment scenario resumes to pre-pandemic levels. Pre-pandemic level means that the employment to population ratio for people aged 16 and above is greater than 60%. These monthly cash payments would not be counted as income. Anyone who is aged 16 or above and earns less than USD 130,000 per annum would be eligible to receive receiving the stimulus.
Last month, the Trump government had enacted a USD 900 billion package and Congress had also devoted USD 4 trillion assistance for taking on the Covid-19 pandemic. Biden is expected to lay out the detailed package next week and discussions are underway to move the package to vote as soon as possible.