Friday, July 17, 2020

Second Stimulus Check Income Limit Will Likely Be Higher Than $40,000


If you’ve been reading up on the next stimulus bill, which we should expect to appear sometime next week, you’ve probably seen many articles about how Senate Leader Mitch McConnell (R-KY) mentioned that it might only go to Americans making less than $40,000 a year.
While it’s unclear where the income limit will be, a “person familiar with the talks” told Bloomberg that “a cap at that level is not seen as likely.”
Let’s look for hints as to why this is the case:

Why $40,000?

$40,000 seems like such an arbitrary number - why does it keep coming up?
According to Federal Reserve Chairman Jerome Powell, 40% of U.S. households earning less than $40,000 lost their jobs in March. It’s a staggering figure that looms even larger when you look at our unemployment charts.

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