While many Americans are already ready to receive $ 600 federal stimulus checks, Congress is now considering increasing it to $ 2,000 at President Trump’s request. House Democrats jumped at the idea and quickly passed a measure approving larger checks. Now it is in the hands of the Senate. Larger stimulus checks, however, would be costly. The Joint Committee on Taxation estimates the approval of stimulus checks to be $ 2,000. That’s a price close to the $ 160 billion Congress would set aside for state and local government aid – until this provision was rescinded earlier this month. Obviously, then, it is not about mathematics. Democrats say the aid would help support the economy until a real recovery can take hold. For example, during the Great Recession, Congress provided about $ 280 billion in aid to states and local governments, but most of it ran out in 2010. That’s when serious gaps Fiscal budgets started in many places and persisted in 2012. The result has been that basic services like public education and transportation have not been restored well in the economic recovery. Republicans opposed direct government aid, calling it a “rescue” from the Blue State. However, direct payments to Americans do not completely ignore state and local governments. But this type of stimulus has more of a trickle-down effect because the direct payments and increased unemployment benefits included in the relief bill circulate money in the economy. And helps states and local governments to some extent, as many purchases are taxed and sales tax revenue is a key part of government budgets. (Notably, sales tax revenue is critical for some red states that do not tax wage income. According to the Pew Charitable Trusts, sales tax revenue accounts for more than half of revenue in six states: Florida, Texas, Washington, South Dakota, Nevada and Tennessee.) Already in this recession, 1.3 million state and local employees. Many governments have so far delayed drastic budget cuts, in large part thanks to coronavirus aid given earlier this year and because many countries have been able to dip into their budget reserves.
- According to Forbes, “$ 2,000 against stimulus checks. State and local government aid: it’s not about money. “.
- Larger stimulus checks, however, would be costly. The Joint Committee on Taxation estimates the approval of stimulus checks to be $ 2,000. That’s a price that’s nearly $ 160 billion that Congress was set to set aside for state and local government aid – until this provision was rescinded earlier this month.
Check all news and articles from the Money news and blog.