The government wants to start sending millions of Americans a check. Here's how to use it wisely
The government wants to start sending millions of Americans a check. This is how you use wisdom
Posted Tuesday, March 17, 20203: 13 PM EDT
Some good news - in the form of money - may come to Americans soon.
On Tuesday, Treasury Secretary Steve Mnuchin said the Trump administration intends to "move" immediately to send money to Americans because the Coronus virus is crippling the economy.
"Americans need cash now," Mnuchin said, pointing to checks that could be coming in the next two weeks.
The announcement follows many discussions that the government could act to help increase the bank balances of American workers now, with so many businesses temporarily closed or operating on a limited scale.
A thousand dollars for everyone
Sen. Mitt Romney, R-Utah, said this week that he wants the government to send $ 1,000 to each adult.
No details were disclosed on how large the checks the Trump administration hopes to activate. Of course, all programs will need a green light from Congress.
"The basic idea of getting money into the economy very quickly is a good idea," said Leonard Borman, an associate at the Municipal Institute, a nonpartisan think tank, and the founder of the Tax Policy Center.
It's also an improvement over potential payroll tax reductions, another idea assigned by the Trump administration and others in recent weeks.
Cash stock
"The ideal thing would be to target the payments to the most vulnerable people, people who are losing their jobs working in industries that are severely affected by the coronavirus," Borman said. "It's hard to define something that will do that immediately."
Whether and how the additional income taxation will also depend on program conditions.
Borman said he thinks the additional income subject to the income tax is a smart move. That way, he said, it would make it harder for higher income earners to pay back more than that. It would also increase state income tax bases that would be hurt in a recession
The government wants to start sending millions of Americans a check. Here's how to use it wisely
As the coronavirus brings the US economy to a halt, the Trump administration is weighing new ways to shore up Americans' financial security. That includes a proposal to cut a check for each American adult. Here's how you can use that windfall for the better.
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