TERRE HAUTE, Ind. (WTHI) - Unemployment numbers in the United States are staggering, but help may be on the way. The House or Representatives recently passed a bill detailing the second round of stimulus checks for Americans.
We saw the CARES Act go into effect in late March of this year. As unemployment numbers continue to rise, there’s been pressure on Washington to put a second round of stimulus payments into place. Economics professor Dr. Bob Guell of Indiana Stare detailed what this proposal looks like.
It’s called the HEROES Act. The Individual check amount to Americans will stay at $1,200. However, the payment for dependent children is being increased from $500 to $1,200. So a two-parent family with three kids and income under $150,000 could receive total payments of $6,000
The bill doesn’t change the way the money is distributed, so be sure to have your IRS information up to date.
Dr. Guell says the main contention point is the extension of the $600 federal unemployment insurance add on to the end of the year.
“Both sides want to deal with the problem of massive unemployment and how to deal with those people who are clearly adversely impacted,” Dr. Guell said, “but they want to do it very very differently. One by giving money to employers and one by giving money to the unemployed.”
Dr. Guell also gave some insight as to where politicians are disagreeing on what should be included in this second package.
He says what was passed through the House was essentially a Democrat wishlist. Republicans would rather have a $1 trillion cap than spending the proposed $3 trillion this time around.
The main disagreement remains unemployment benefits. As it stands, Guell says this is basically incentivizing the unemployed to stay at home, because they are making more money this way.
He also says there is a political leadership battle that plays into this as well with an election coming up this November. He believes there will be another round of stimulus payments, but politics may come into play.
“If they think they can get more benefit out of the political appearances than the actual economic impact, they’ll vote no just to vote no,” Dr. Guell said.
President Trump has said he would like to see how the reopening of the economy goes before making any decisions on another stimulus package. Overall, Guell says there’s a very good chance we see a second round of stimulus help in the near future. It will just depend on compromise and the unemployment decisions.