Updated May 12, 2020

Insane $5,500 Per Month Stimulus Package Proposed

COVID-19

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So two Democratic Congressmen in the House of Representatives — Ro Khanna of California and Tim Ryan of Ohio — yes, that Tim Ryan who briefly ran for the Democratic Presidential nomination last year with the slogan “Our Future Is Now” — Representatives Khanna and Ryan introduced a bill called, and you’re going to love this, the “Emergency Money for the People Act”.

If you’d rather watch than read, check out the YouTube version here!

And it provides anywhere between $2,000 and $5,500 in stimulus payments per month depending on your income and household composition.

They’re basically proposing more tax-free stimulus checks, more direct cash payments.

And we need ’em, and I hope we get more.  I know some people for whom the $1,200 just doesn’t go far enough.

But this particular act, it’s a doozy, it’s asking for a lot, and I’m going to get into it, but first I will remind you, that this is simply legislation that has been introduced into the House, this is very early stages, don’t get too excited, and keep in mind that the House isn’t even convening until May 4 except for emergency legislation, and this might be considered emergency, I mean it’s in the name.

But looking at the grab bag that is this Emergency Money for the People Act, I can tell you right now that Republicans aren’t going to go for it, at least not in the way that the Congressmen have drafted it.

I’m not saying that Republicans are going to halt any future stimulus, that’s not what I’m saying, but after I get through explaining to you the details of this Emergency Money for the People Act, I think you’ll see what I mean.

So for kicks, let’s go over the act that Congressmen Khanna and Ryan have proposed.

So what the Emergency Money for the People Act proposes is to send every American over the age of 16 $2,000 per month for 6 months, after which assuming that employment levels have not returned to the pre-crisis employment level of 60%, Congress could vote to extend the payments for an additional 6 months.

And if you have a dependent child, you’d be looking at an additional $500 per dependent child under the age of 17 with a maximum of three children per household.

Wow.  So just doing the math here, if you’re married and under the income limits that I’m going to tell you about in a second, and you have three children, you could be looking at $2,000 for you, $2,000 for your spouse, and $500 each for each of your little ones, meaning $5,500 stimulus per month, ladies and gentleman, tax-free.

Can you say inflation?  Can you say UBI on steriods?  Can you say welfare state?

Yeah, mm-hmm.  You know this isn’t going to happen, but let’s keep talking about it, let’s dream, shall we?

And get this, this act also calls for stimulus payments to be allowed to made via PayPal.  And Zelle.  And Venmo.

These guys aren’t even Millennials, what’s going on here?

I mean, can you imagine?  The freaking feds sending you your $5,500 welfare state payments through Venmo with a freaking emoji, like a little American flag.

This is a freaking trip, man.  I want to meet these guys.

But let me know what you think about Venmo stimulus payments in the comments, alright.

But hey, at least this is something, right, at least it kinda gets the ball rolling, putting pen to paper in some way for Stimulus Round 2.

And I mean, the more I look at this, the more I think this is all wishful thinking, but just to let you know what they’re saying, who would qualify under the Emergency Money for the People Act?

So single taxpayers making less than $130,000 would qualify and married couples making less than $260,000 would qualify as well.

OK, here we go again, I know $250,000 a year doesn’t make you rich in some parts of the country.  But if you’re struggling on a quarter million a year, you either need to move and live somewhere less expensive or stick to a budget, and probably both, like frankly I don’t think a family making $250,000 a year needs an extra $5,500 a month.

I didn’t see anything on the Congressmen’s website about specific phaseouts, but I’d bet there would be phaseouts for this as there was for the CARES Act.

And similar to the CARES Act, if you make no money you would qualify as well.

Now, I think this Emergency Money for the People Act is kind of funny especially with the whole Venmo thing, and there’s no way that a Republican Senate would go for this, OK.

Now, I don’t want to make light of the people the CARES Act overlooked, including adult dependents, OK, and the unbanked, OK, that sucks, it shouldn’t be that way, and I hope there is an additional stimulus that serves you folks better.

And maybe the strategy here with this Emergency Money for the People Act is just to ask for THIS knowing that you’re only going to get maybe THIS, right?

So anyway, what do you think of this?  What do you make of it?  We’d obviously all love an extra two grand or four grand or five grand a month, but I encourage you to think about the long-term ramifications of something like this, you have to think about the fact that we and our children will be paying for something like this for a long time.

OK, now is this the last video today?  Hopefully not.  I really want to walk through the IRS Get My Payment Tool for you, but it’s not complying, still giving me that same message that I showed you in my stimulus update from earlier, and I’ve seen a lot of people message me that they’re having trouble accessing it as well, but hopefully that gets resolved for all of us.

Alright, so that’s all for this video, I’m sorry for so many vids today, I just had to talk about this because I think it’s good that Congress is thinking about Stimulus Part 2 and also because I thought the whole Venmo thing was kind of  funny, so stay tuned of course for updates, be sure to like the video and subscribe to the channel.  Thank you.

Logan Allec, CPA

Logan is a practicing CPA, Certified Student Loan Professional, and founder of Money Done Right, which he launched in July 2017. After spending nearly a decade in the corporate world helping big businesses save money, he launched his blog with the goal of helping everyday Americans earn, save, and invest more money. Learn more about Logan.

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5 Comments

Enough already. End the shutdowns. Stop pushing massive bills through. All this leads to is major inflation. Personally this would double my income but I still cannot support it in any way. Anything passed now is going to just add to the massive national debt we already have. It won’t be long at this rate before the country crumbles. Socialism doesn’t work.

I think this bill is a typical negotiation tactic. Shoot for the furthest away galaxy in the universe hoping to actually just make it to the moon. When I first read about this the other day I was surprised at the ambitiousness (is that even a word?). I agree with your thoughts exactly, and while a one-time payment of $1,200 was basically a bribe to Americans to stay home and follow the guidelines, it wasn’t nearly enough to bridge the financial chasm created by the effort to combat the covid virus. The PPP has been a failure, states cannot keep up with unemployment claims and people are starting to get desperate. It was explained to me the first stimulus payment is actually an advance on a tax credit for next year’s tax return, I don’t understand the ramifications of that, but it did get money into peoples pockets quickly. Another round of stimulus is definitely in order. Businesses are going to be hurting, and this will encourage people go out and spend, as well as providing some well needed relief to their budget.

I heard the. Craziest thing from my neighbor his cousin in Georgia is a lawyer she makes over 1 million a year with her law firm she states that she recieved a 1.6 million dollar stimulus check and he (neighbor) also said 43000 people with similar income to still receive it . He (neighbor) states that the entire reason stimulus cares act passed so quickly was because it was written in buried in the “fine print” I told him I knew who to ask so Logan help put this to rest is their any truth to the “EXTRA RICH GETTING RICHER”??

I filed my 2019 federal tax return through the mail. I know the date i mailed it. I have been trying to track my refund so that i can give my direct deposit info on the get my payment tool for the stimulas payment. But part of my info doesnt match because i dont know when i filed….meaning what day it actually was processed. Since i haven’t received a check yet i assume it hasnt been processed yet. What can i do since i only have the day i mailed it not the date its been “filed”?

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