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Alright, I've got ahold of the 19-page "Fact Sheet" for the Biden "American Rescue Plan." (Thanks @TaxNotes!)
This is prob the best we're going to get for now, so I'm gonna use this to break down some of the proposals of the Plan relevant to tax and financial planning...
Alright, I've got ahold of the 19-page "Fact Sheet" for the Biden "American Rescue Plan." (Thanks @TaxNotes!)
This is prob the best we're going to get for now, so I'm gonna use this to break down some of the proposals of the Plan relevant to tax and financial planning...
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The American Rescue Plan would provide additional stimulus checks of $1,400 per eligible person. Together w/ the $600 amounts that were/are being paid via the Appropriations Act in December, it brings the total value of recent payments to $2k/ eligible person.
Notably...
The American Rescue Plan would provide additional stimulus checks of $1,400 per eligible person. Together w/ the $600 amounts that were/are being paid via the Appropriations Act in December, it brings the total value of recent payments to $2k/ eligible person.
Notably...
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... this is one policy initiative where Biden and Trump share a vision
The Plan also calls for expanding the types of people eligible for stimulus checks to include adult dependents (presumably to include many college students and elderly parents)...
... this is one policy initiative where Biden and Trump share a vision
The Plan also calls for expanding the types of people eligible for stimulus checks to include adult dependents (presumably to include many college students and elderly parents)...
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Unemployment benefits would get a BIG boost.
The add'l unemployment benefit subsidized by Federal gov't would increase to $400/week. That's up from the current $300/week amount, but still 33% less than the $600 weekly amount first authorized by the CARES Act in March 2020...
Unemployment benefits would get a BIG boost.
The add'l unemployment benefit subsidized by Federal gov't would increase to $400/week. That's up from the current $300/week amount, but still 33% less than the $600 weekly amount first authorized by the CARES Act in March 2020...
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... that $400 add'l unemployment benefit would be extended through September of 2021.
Individuals who run out of 'regular' state unemployment would also be eligible to continue receiving unemployment benefits through September 2021.
And Pandemic Unemployment Assistance...
... that $400 add'l unemployment benefit would be extended through September of 2021.
Individuals who run out of 'regular' state unemployment would also be eligible to continue receiving unemployment benefits through September 2021.
And Pandemic Unemployment Assistance...
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...which provides unemployment benefits to those who are typically ineligible for such benefits (e.g., self-employed individuals) would be extended through September as well.
...which provides unemployment benefits to those who are typically ineligible for such benefits (e.g., self-employed individuals) would be extended through September as well.
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The moratorium on evictions and foreclosures would be extended through September 2021 as well. Note that, in general, the Federal gov't only has the ability to 'control' this when a property is subject to a Federal loan.
If you're wondering what that means for the owners...
The moratorium on evictions and foreclosures would be extended through September 2021 as well. Note that, in general, the Federal gov't only has the ability to 'control' this when a property is subject to a Federal loan.
If you're wondering what that means for the owners...
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...of properties, yes, it means that they could be required to allow renters to continue to live in their apartments (etc.) even if they're not paying their rent. But, they may be eligible to apply for forbearance on their loans during that time. The Plan also includes...
...of properties, yes, it means that they could be required to allow renters to continue to live in their apartments (etc.) even if they're not paying their rent. But, they may be eligible to apply for forbearance on their loans during that time. The Plan also includes...
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$25 billion in rent assistance, as well as an additional $5billion to help low-to-moderate income households pay for utility bills.
The Plan also calls for a SIGNIFICANT expansion of the Child and Dependent Care Credit. Up to a $4k credit for 1 child, and up to $8k...
$25 billion in rent assistance, as well as an additional $5billion to help low-to-moderate income households pay for utility bills.
The Plan also calls for a SIGNIFICANT expansion of the Child and Dependent Care Credit. Up to a $4k credit for 1 child, and up to $8k...
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for two or more children. The credit would be available in full to "families" making less than $125,000 and would be phased out between $125k and $400k.
2 thoughts...
1) It's not clear what "families" means. Is that joint filers, single filers, both?
2) The fact that...
for two or more children. The credit would be available in full to "families" making less than $125,000 and would be phased out between $125k and $400k.
2 thoughts...
1) It's not clear what "families" means. Is that joint filers, single filers, both?
2) The fact that...
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...the Credit would be fully phased out at $400k further cements that income threshold as Biden's "line in the sand" so to speak, on who is high income, and who is not.
SO many of his platform proposals delineated between those above and below that mark as well...
...the Credit would be fully phased out at $400k further cements that income threshold as Biden's "line in the sand" so to speak, on who is high income, and who is not.
SO many of his platform proposals delineated between those above and below that mark as well...
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The Plan also calls for the Child Tax Credit to be expanded to $3,600 for each child under 6 and $3k for each child between 6 and 17.
It would also be fully refundable.
Interestingly, this would ONLY be for 2021, even though his tax platform called for the change on a...
The Plan also calls for the Child Tax Credit to be expanded to $3,600 for each child under 6 and $3k for each child between 6 and 17.
It would also be fully refundable.
Interestingly, this would ONLY be for 2021, even though his tax platform called for the change on a...
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...permanent basis. Perhaps Biden is hoping to make the change for this year now, and then address it as a 'permanent' feature of the law when Ds take up broader tax reform (presumably sometime later in 2021).
Plan would also increase the EITC for childless adults by ~3X...
...permanent basis. Perhaps Biden is hoping to make the change for this year now, and then address it as a 'permanent' feature of the law when Ds take up broader tax reform (presumably sometime later in 2021).
Plan would also increase the EITC for childless adults by ~3X...
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To aid struggling families with maintaining healthcare coverage, the Plan would subsidize COBRA coverage through September, and would also increase Premium Assistance Tax Credits so that families pay no more than 8.5% of their income to maintain coverage.
To aid struggling families with maintaining healthcare coverage, the Plan would subsidize COBRA coverage through September, and would also increase Premium Assistance Tax Credits so that families pay no more than 8.5% of their income to maintain coverage.
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A bunch more on paid leave and stuff like that.
Plus a WHOLE LOT of
for vaccination programs, state and, and other administration priorities.
Total price tag... about $1.9 Trillion, which puts it just shy of the price tag of the CARES Act, which was $2.2 trillion...
A bunch more on paid leave and stuff like that.
Plus a WHOLE LOT of
for vaccination programs, state and, and other administration priorities.Total price tag... about $1.9 Trillion, which puts it just shy of the price tag of the CARES Act, which was $2.2 trillion...
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though to be fair, this proposal could be considered Part 2 of the COVID relief portion of the Appropriations Act passed in December. Put them together and the price tag exceeds the CARES Act total by a mere half-trillion or so
2 final parting thoughts...
though to be fair, this proposal could be considered Part 2 of the COVID relief portion of the Appropriations Act passed in December. Put them together and the price tag exceeds the CARES Act total by a mere half-trillion or so
2 final parting thoughts...
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First, we're CLEARLY going to be spending WAY more than we bring in for the foreseeable future. Will be interesting to see if the new Admin sees this as a significant issue, or if they'll be influenced at all by Modern Monetary Theory (see @StephanieKelton's stuff) and...
First, we're CLEARLY going to be spending WAY more than we bring in for the foreseeable future. Will be interesting to see if the new Admin sees this as a significant issue, or if they'll be influenced at all by Modern Monetary Theory (see @StephanieKelton's stuff) and...
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...not see the deficits we're running up as much of a concern. And to actually say that.
Second, just b/c Ds control House, Senate + Office of President, this is far from a done deal.
State Aid almost certainly eliminates R support +Ds like Manchin may balk at price
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...not see the deficits we're running up as much of a concern. And to actually say that.
Second, just b/c Ds control House, Senate + Office of President, this is far from a done deal.
State Aid almost certainly eliminates R support +Ds like Manchin may balk at price
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