We are in for a week or so of back and forth inside and outside of Congress as U.S. Senate Republican introduce their CARES ACT Part Deux. Since we are in an election year, expect some grandstanding, hyperbolic soundbites, and vitriol.
U.S. Senate Majority Leader Mitch McConnell said, “Although the early days of our economic recovery have beaten expectations and surprised the experts, we have really only begun to repair the damage. More than 17 million Americans are still jobless. Far too many families are still hurting.”
We expect the $1 trillion CARES 2 ACT proposal to include $100 billion to help schools and universities reopen for the 2020-2021 school year, a $1,200 direct payment to most Americans with incomes below $75,000 per year, a new Payment Protection Plan, though details are unknown this morning.
U.S. Senator Chuck Schumer wants to see the $600 weekly federal payments going out to many Americans extended through February 2021. They set those $600 weekly payments to expire at the close of this month and it will probably continue next month in some form, though it is unclear what that amount will be. Some Republicans have stated they may go for $100-200 per week, but not $600 per week. Another suggestion by some in Congress is to make the weekly payment 70% of what an American has lost in wages because of COVID-19.
This second round of stimulus could also hobble landlords of a certain size in keeping them from evicting tenants. The current federal ban on evictions has expired, and they expect CARE 2 to re-institute the ban in some form.
President Donald Trump would like to see a payroll tax cut, giving workers more of their paycheck back to them. Such a proposal is unlikely to get far, based on some language from many Senators and U.S. House Reps. Joe Biden should be happy with the GOP CARE 2 plan as it addresses three of his four suggestions for the next round of funding: money going to schools and universities, money not going to the wealthy, and funding for PPE (personal protection equipment) and expanded testing for COVID-19. Regarding the second round of stimulus, Jo Jorgensen said via her Twitter account, “The gov’t is about to send you more “relief”, as if $1,200 of your own money, that should never have been taken in the 1st place, will fix the problem that gov’t caused. The taxes needed to pay for it will be much more than $1,200.”