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Thursday, February 9, 2023

Stimulus Check Funding From Tax Hikes?

Stimulus Check has been demanded and petitioned by the whole of America. They have been in the news for more than two months now. As soon as the IRS sent out the third stimulus checks, concerns for a fourth-round started gaining mass. The citizens expressed concerns over a possible shutdown. America is suffering from a covid scare recently. A new variant of the virus(Delta) is treating another wave of economical and social distress. These circumstances have raised questions in the minds of many. Citizens have requested the government to aid them if another shutdown is to happen. Some of the households are still recovering from the adversities. A tax program heavily favored by the Democrats can be the answer. The proposed program, if implemented, can account for a huge sum of money. Let us discuss the program in detail below.

Stimulus Check Equivalent Tax Program Proposed By Democrats

The Democrats have already earned the green signal to implement a social package worth $3.5 trillion. Before the bill is approved by the GOP, some internal issues need to be addressed. One thing that has been unanimously decided is the source of funding- Taxes. However, the percentage of levied taxes are being conflicted. The party has structured a spike in the tax rates for the top-earners. These will include wealthy citizens, top-level investors, high-end businesses, etc. 

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US President Joe Biden raised a 28% rate for the corporates. This rate was more than the existing rate of 21%. This has created a difference in opinion among the party. Democrats like Joe Manchin have counter-proposed a 25% rate. This directed in rolling out of tax law of 2017, which was designed by Donald Trump. 

A study stated that implementation of the bill could account for $800b. This amount is sufficient to roll out two $1400 Stimulus Checks. Will a further check become a reality is a question for the future to unravel. 

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