JOE BIDEN SIGNS USD 1.9 TRILLION COVID-19 STIMULUS PACKAGE INTO LAW

Mike Goossen, CPA     Mar 15, 2021     3090
JOE BIDEN SIGNS USD 1.9 TRILLION COVID-19 STIMULUS PACKAGE INTO LAW

US President Joe Biden signed the huge USD 1.9 trillion American Rescue Package on Thursday, which is expected to give the country's economy a big boost.

US President Joe Biden signed the huge USD 1.9 trillion American Rescue Package on Thursday, which is expected to give the country's economy a big boost. In his brief remarks, Biden characterized the bill as "historic legislation" that "is about restoring the foundation of the country and giving a fighting chance to the citizens of this country, working people, middle-class people, and those who founded the country. The colossal bill, known as the American Rescue Plan, allocates money for vaccines, schools, small businesses, and anti-poverty programs such as an expanded child tax credit that will mean new monthly payments to many parents.

 

After the Senate made amendments to the original bill — some to comply with Senate budget rules, and others to win the support of moderate Democrats — the House gave its final approval on Wednesday.

 

THE BILL WOULD INCLUDE $1400 IN STIMULUS FUNDS

Individuals earning less than $75,000 and married couples earning less than $150,000 will receive $1,400 per person in direct payments. In addition, the bill will include $1,400 per dependent.

Above those income thresholds, the benefits will steadily decrease before disappearing completely above an income limit of $80,000 for individuals and $160,000 for married couples. The limits in the House's version of the stimulus package, which set the cutoffs at $100,000 for individuals and $200,000 for married couples, were reduced.

THE EXISTING RAISE IN UNEMPLOYMENT INSURANCE OF $300 A WEEK WILL BE RETAINED

The Senate bill extends unemployment insurance through early September, with a $300-per-week federal supplement that was included in the previous stimulus package passed in December.

Mr. Biden suggested increasing the supplementary benefit to $400 a week, which the House approved, but the Senate decided to keep it at $300 per week.

The Senate bill also contains a clause that would exempt people who have lost jobs from paying federal income taxes on the first $10,200 of unemployment insurance they collect in 2020 if they earn less than $150,000.

THE CHILD CREDIT WOULD BECOME MORE GENEROUS, AMONG OTHER BENEFITS

The bill will extend the child tax credit, which is currently worth up to $2,000 per child under the age of 17, until 2021. The tax credit under the law could be as much as $3,600 for children under the age of five and $3,000 for children aged 6 to17.