SAN JOSE, Calif. (KRON) -- President Joe Biden begins his presidency with much uncertainty throughout the nation over the economy.
Due to the coronavirus pandemic, millions of Americans have been left out of work, entire sectors of the economy shuttered, and businesses on the brink of permanently closing.
Biden last week unveiled a $1.9 trillion coronavirus plan aimed to help struggling families and speeding up vaccine distribution, as well as financially assisting those struggling amid the pandemic.
“Biden’s new economic relief plan comes at a pretty steep price,” said Sam Gaeta, financial expert with Defined Financial Planning.
“I think some of the critical components are number one direct payments, so they’re increasing the direct payments another $1,400 for families just like the first and second stimulus bill.”
Dubbed the “American Rescue Plan,” the legislative proposal would aim to meet Biden’s goal of administering 100 million vaccines in the first 100 days of his administration and stabilizing the economy.
The plan also sends an additional $1,400 stimulus check to most Americans and increases weekly unemployment benefits from $300 a week to $400.
“I think a lot of the details are still being ironed out,” said Gaeta.
“Obviously at a $1.9 trillion price tag there’s gonna be some pushback but with that being said if you were eligible for the first round or the second round, most likely you’ll qualify for this third round of direct payment.”
It is still unclear who will receive a third stimulus check under the new proposal but if you received a first or a second stimulus check, it’s likely that you will get a third.
A major difference in the first round of stimulus checks barred spouses of undocumented immigrants who don’t have a Social Security Number from received a check but under Biden’s proposal, those households would get this third stimulus check.
“The interesting thing I think is the infrastructure rolling out, the IRS is built a really good foundation of infrastructure to pay out these direct payments,” said Gaeta.
“So hopefully that's gonna flow through to be able to provide timely stimulus to some of those families who didn’t receive the first or second round.”
Gaeta tells KRON4 News for those who qualify to receive a stimulus check or financial assistance, he suggests making sure to take time to plan for an uncertain future as we are still in the middle of a pandemic.
Gaeta says after trillions of dollars in stimulus, we can all expect taxes to increase in the coming years.
“My guess is it that tax rates are most likely gonna go up, that’s usually who foots the bill for these types of things, is taxpayers, so now is a good time to do some tax planning,” said Gaeta.
“There’s still a lot of uncertainty coming into 2021, I think a lot of families realized how sensitive their budgets are something like this where all of a sudden we can’t work and you still need to pay your bills,” Gaeta added. “This is a great opportunity to bank some of that stimulus money, save it up, increase your savings rate for some of this future uncertainty.”
For struggling small business owners, the proposed legislation would provide another $15 billion in PPP loans, as well as increase food stamp benefits and more money for childcare grants.
Biden is also calling on Congress to raise the deferral minimum wage to $15 an hour.
“I think this administration is being thoughtful about who's getting money, how that's going to be applied, they steered a lot of money towards the education system, we want to see the vaccine being rolled out at a faster rate, we want to see kids back in school, so some of those infrastructures that are so important to our economy '' said Gaeta.
“I think most economists think this is going to be in place sometime late February, mid-March is a good expectation if all things goes to plan and I think that's pretty timely all things considered.”
from KRON4 https://ift.tt/2Ns9p5W
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