Tax Policy Center analysis: Stimulus bill to provide relief to lower, middle income families

By Dan McCaleb | The Center Square

The Senate is scheduled to vote on the package Wednesday afternoon before it moves to the House, where its fate is uncertain. President Donald Trump says he supports the stimulus measures.

An analysis of the bill by the Tax Policy Center shows that about two-thirds of the money for Americans would go to low- and middle-income housholds.

The legislation would provide payments of $1,200 to each adult and $500 to each child under age 17 depending on household’s 2019 income.

“Under Sunday’s version, low- and middle-income households would receive about 68 percent of the payments,” Howard Gleckman, senior fellow at the Tax Policy Center, said. “Because of the income-based phase-outs, the top 20 percent of households (those with incomes of $163,000 or more) would get only about 11 percent of the benefits , and the top 1 percent would get none.”

Gleckman says the payments start to phase out for individuals with income of $75,000, or income of $150,000 for couples filing jointly and $112,500 for single parents.

“TPC found that the lowest-income households (those with incomes of about $25,000 or less) would receive an average payment of $1,480 and their after-tax income would increase by nearly 11 percent,” Gleckman wrote. “Middle-income households (those making between about $51,000 and $91,000) would get a payment of about $1,810, on average, or about 3 percent of their after-tax income.”

The Tax Policy Center is a joint venture of the Urban Institute and Brookings Institution.

Image courtesy of Flickr/401kcalculator.org

One thought on “Tax Policy Center analysis: Stimulus bill to provide relief to lower, middle income families

  1. Sens. Bernie Sanders and Elizabeth Warren’s former advisers are involved in a plan to cajole Democrats into supporting a Green New Deal stimulus plan that will effectively overturn the U.S. economy, which is spiraling from coronavirus quarantines.
    https://wattsupwiththat.com/2020/03/26/former-sanders-warren-advisers-helped-author-a-2-trillion-green-energy-stimulus-deal/

    Dozens of activists and environmental policy advisers offered a plan Sunday that would turn the COVID-19 pandemic stimulus into a massive Green New Deal project. The project would require Congress take up a multi-billion stimulus package every year until the U.S. is free of oil.

    The stimulus would be renewed “annually at 4% of GDP per year until the economy is fully decarbonized and the unemployment rate is below 3.5%,” a slew of environmentalists wrote in an open letter to Congress.

    Daniel Cohen, a University of Pennsylvania professor who helped advise Sanders’s presidential campaign on environmental issues, is one of the chief authors alongside Ayana Elizabeth Johnson, a marine biologist who advised Warren’s campaign.

    They want Congress to put up $850 billion per year until the economy is fossil-fuel free.

    Speaker Nancy Pelosi introduced the House’s version of a stimulus bill, which included provisions for green energy tax credits for wind, solar and hydro, etc., and fuel emissions regulations for airlines.

    Her version would cost an estimated $2.5 trillion

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