3/4 of House Dems back regular payments

Lawmakers are coalescing around a call for regular direct payments to help families impacted by the crisis lasting until the economy recovers, including:

CARES 2: Fixes needed to get more money to more people, more quickly

Following the passage of the CARES Act that gave direct cash assistance to millions of American families, Congress is already working on CARES 2 -- another direct cash infusion to help those struggling from the economic crisis. 

Of CARES 2, Speaker Pelosi said, “Let’s do the same bill we just did, make some changes to make it current.” 

Extraordinarily, CARES 1 already expanded who qualifies for cash assistance in America. UI was dramatically expanded to include gig, part-time and freelance workers for the first time. And the one-time $1,200 checks will go to nearly every American making less than $100,000, including those with no income for the first time. These signal a significant shift in our understanding of who is deserving of help in America.

But CARES wasn’t perfect. As we look at CARES 2, Congress needs to “make some changes to make it current.” Already, some Members of Congress have proposed solutions -- but there’s more to be done to address the gaps and the deepening need:

The one-time $1,200 payments aren’t enough. 

Large groups of Americans were left out.

  • Undocumented workers and adults and children with Social Security numbers who live in mixed-status households are excluded from direct payments (though the latter groups were eligible for tax cuts under the TCJA). Rep. Lou Correa introduced a bill that would fix this by including individuals who file taxes using an ITIN. Rep. Ilhan Omar is planning to address mixed status households.

  • College students and older high school students are not eligible. Senator Tina Smith introduced a bill backed by Democratic Whip Dick Durbin that would fix this by making older children and adult dependents eligible for a direct payment. The same bill was introduced in the House by Rep. Angie Craig.

Many people won’t see their checks for months, or at all.

  • Some Americans will have to wait months for payments. While the first 60 million payments are expected to go out next week via direct deposit--a sign that the Treasury Department is capable of making large numbers of payments quickly--Americans who don’t have current bank information with the Treasury Department will have to wait longer for the agency to issue paper checks. While many of these delays will resolve once the Treasury Department has people’s information, Congress should look at using SNAP/TANF cards and Treasury prepaid debit cards as additional ways to get money out faster.

  • Many low-income veterans, seniors, and people with disabilities who don’t typically file tax returns would have to do so in order to receive benefits. The administration changed its guidance to allow Social Security recipients to receive payments automatically, and Senators Brown, Hassan, Bennet and Booker have urged the Treasury Department to do the same for SSI and VA beneficiaries.

  • Many of the most vulnerable, including the unbanked and those whose incomes are so low that they don’t file taxes, won’t receive any payments at all unless they file tax returns they’re not otherwise required to file. Congress must make it easier for these Americans to receive payments without having to go through the burdensome process of filing a tax return. 

Source: https://www.economicsecurityproject.org/em...

By the Numbers: A Cost-of-Living Refund

The Earned Income Tax Credit (EITC) is recognized as one of the country’s most effective anti-poverty programs. Refundable tax credits including the EITC helped keep nearly 8 million Americans out of poverty in 2018. 

It is because of this success that Economic Security Project is leading a campaign to expand and modernize the EITC to put more money in the pockets of those who need it most. 

The Cost-of-Living Refund would increase the number of people eligible for the EITC by reaching further into the middle class, including workers without dependent children, and including workers starting at age 18. The policy would also broaden the definition of work to include family caregivers and low-income students. Learn more about the Cost-of-Living Refund and Economic Security Project’s campaign.

In recognition of #EITCAwarenessDay, here’s a look at the Cost-of-Living Refund by the numbers:

3.1 million: The number of households in ME and CA that will be helped with the rising cost of living and housing due to the recent EITC expansions.

153.7 million: The number of Americans that would benefit from a Cost-of-Living Refund, compared to 25 million Americans who received the EITC in 2019.

$400: The amount of an unexpected expense that 4-in-10 Americans say could push them into financial ruin. 

$4,000: The amount an eligible individual could receive per year with a Cost-of-Living Refund. Married couples can receive up to $8,000.

$90,000: The maximum amount a family can make and be eligible for a Cost-of-Living Refund. The Cost-of-Living Refund reaches into the middle class to reduce financial instability.
43.5 million: The number of Americans that were unpaid caregivers in the last year. The Cost-of-Living Refund would broaden the definition of work to include family caregivers, putting money in the pockets of millions more people.

Cory Booker: Expanding the Earned Income Tax Credit is a Racial Justice Issue

Is taxing the wealthy a racial justice issue? Sen. Cory Booker was asked at the recent She the People forum and couldn’t have been clearer: “ABSOLUTELY.” His recently-introduced Rise Credit, a Cost-of-Living Refund, would tax the wealthy to put more money into the pockets of those who need it the most.

“This is absolutely a racial justice issue, an economic justice issue, where you have Americans now looking at a nation where corporate profits are at an 85-year high and wages are at a 60-year low,” said Booker.

And he didn’t stop there. Senator Booker also laid out why caregivers deserve to be recognized for their work: “There are so many people who have to stay home and take care of a spouse with dementia, or a special needs child. That is work too, and they should qualify for a credit.”

Take a look at this short video on how Sen. Booker says his Rise Credit would help American workers.