Biden Agrees to Lower Income Cap for Stimulus Checks

Mandatory Credit: Photo by Matt Slocum/AP/Shutterstock (11712122g)President-elect Joe Biden leaves after speaking at an event at The Queen theater, in Wilmington, DelBiden, Wilmington, United States - 15 Jan 2021.
Matt Slocum/AP/Shutterstock / Matt Slocum/AP/Shutterstock

President Biden and Senate Democrats have agreed to tighten income limits for receiving the $1,400-per-person stimulus checks included in the $1.9 trillion American Rescue Plan, according to an Associated Press report.

See: If You Get a Stimulus Check, How Will You Use It? Take Our Poll
Find: $1,400 Stimulus Checks Are Still Coming – But Who’s Eligible to Get One?

CNBC, citing a Democratic source, says the phaseout, which starts at $75,000 for single filers, now would be capped at $80,000. The phaseout starting at $150,000 for joint filers now would be capped at $160,000. For heads of household, the phaseout starts at $112,500 and would now be capped at $120,000. The $400 weekly unemployment insurance benefit is expected to remain in the bill.

“I’m tired of compromising on basic progressive values. We must do everything in our power to give Americans a raise,” Rep. Ro Khanna tweeted after the news broke.

The direct payment of $1,400 per person in Biden’s plan would  supplement the $600 Congress approved as part of the second stimulus.

Make Your Money Work for You

See: Proposed Tax Breaks and Credits That Could Make the New Stimulus Bill a Welcome Relief
Find: COVID-19 Made All of Us More Broke – Here’s How We’re Struggling with Money at Every Age

The phaseout has been one of the sore issues in advancing the bill.

Biden said last month that there’s a need “to target that money. So, folks making $300,000 don’t get any windfall.”

Republicans — as well as some Democrats, including West Virginia Sen. Joe Manchin — have been pushing to lower the eligibility criteria. During the vote in February, Manchin, along with Republican Sens. Susan Collins, Mitt Romney and 13 others, introduced an amendment to the bill to “establish a deficit-neutral reserve fund relating to targeting economic impact payments to Americans who are suffering from the effects of COVID-19, including provisions to ensure upper-income taxpayers are not eligible,” according to the amendment.

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About the Author

Yaël Bizouati-Kennedy is a former full-time financial journalist and has written for several publications, including Dow Jones, The Financial Times Group, Bloomberg and Business Insider. She also worked as a vice president/senior content writer for major NYC-based financial companies, including New York Life and MSCI. Yaël is now freelancing and most recently, she co-authored  the book “Blockchain for Medical Research: Accelerating Trust in Healthcare,” with Dr. Sean Manion. (CRC Press, April 2020) She holds two master’s degrees, including one in Journalism from New York University and one in Russian Studies from Université Toulouse-Jean Jaurès, France.

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