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Sunday, August 7, 2022

2 New Stimulus Checks May Be Created By Tax Overhaul

For millions of American citizens, the direct stimulus check payments have been nothing less than timely lifelines as the coronavirus pandemic raged on. However, a huge population continues to demand more help and legislation from the government as the struggles just do not seem to end.

Stimulus Checks Cost Money, But That Might Be Solved

Since 2020, Congress has signed off on 3 stimulus check payments to Americans who met certain criteria. 2020 spring’s $1200 check, December 2020’s $600 check, and the latest and ongoing $1400 ones which are a part of President Biden’s American Rescue Plan.

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However, to a large number of the population, this has not been enough. The economy is getting back on its feet, but overcoming the damage incurred, especially to low-income households, is still going to take years. As such, many want more stimulus checks to be approved as soon as possible.

At the same time, some Democrats have aimed at a tax law passed in 2017 by the Trump government. The law dictates how MNC’s based in the US would be taxed by the government. Overhauling the taxation guidelines would result in an estimated $800Bn worth of taxes.

American Enterprise Institute’s senior fellow Kyle Pomerleau said that the tax overhaul was among the major methods of raising revenue included in Biden’s agenda. He added, that the provisions about internationality will raise a maximum of $800Bn.

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With this huge amount of extra money, the feds will have the budget for financing at least 2 extra stimulus checks worth $1400. Senators Sherrod Brown (Ohio), Mark Warner (Virginia), and Ron Wyden (Oregon) have already finished a framework for accomplishing the overhaul. Wyden explained that companies are having to pay as little as they did during WW2, while families kept struggling. As such, they are not going to give any incentive for shipping jobs overseas and stashing profits in foreign tax havens.

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