I explain Phase 4 of the Cares Act along with the $4,000 Explore America Tax Credit + $1,200 Stimulus Check
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Today we’re talking about the $4,000 Stimulus checks, the SECOND $1,200 stimulus check, there’s a few exciting new updates about everything, there’s a LOT to update you about since I’ve made my last stimulus check update video.
PHASE 4 of the CARES ACT. Phase 4 will largely focus on stimulating the manufacturing sector because it has ripple consequences to help other industries like entertainment, hospitality , and transportation which are considered “discretionary spending”. The problem is, displacing entire industries, even though they are “non essential”, can still have ripple consequences on the economy.
To fight this, here is where the $4,000 comes in. The president asked to “Create an Explore America Tax Credit that Americans can use for domestic travel, including visits to restaurants, that’s a big deal”.
So in response, the US Travel Association put together a very specific proposal that the president really likes. In case you’re not sure who they are, they’re a non profit organization that pushes travel interests by way of research and policy in order to get funding and create more jobs to grow the travel industry which right now is responsible for 1 out of 10 of every American jobs.
Explore America gives TAX CREDIT, of up to 50% for all travel expenses including groceries, restaurants, entertainment, business, and gas up to a maximum limit of $4,000. In order to qualify, you have to have a travel expense greater than $50 while traveling away from home, but it has to be within the United States.
This tax credit would last until December 31st, 2021. However, you can probably see a problem with it already, because we don’t actually receive $4,000, it’s a tax write off.
As far as the $1,200 Stimulus check round 2, the ball is in the Senate’s court. The specific days that the Senate Republicans will work on their proposal will be after “recess” which starts July 3rd, and goes until July 17th.
However, if they drag it on and nothing gets done, the next key date is August 8th, if nothing then, then we won’t hear back about anything else until September 8th. That’s because there’s another recess for an entire month.
If by some miracle a proposal is actually passed by all branches of the government, then we’ll see checks sometime August 22nd or 23rd, with most people paid the direct deposits at the beginning of September. That’s the official outlook.
Specifically what we’ll get, it will hinge on one fact – how big the stimulus package will end up being. The Republican controlled Senate have the smallest package size, they want to limit the stimulus to $1 trillion dollars. President Donald Trump wants at least $2 trillion dollars, meanwhile, we already know the Democrat controlled House Of Representatives want a $3 trillion dollar deal. Unfortunately, that’s the ONLY proposal that’s actually on paper right now.
The $600 weekly unemployment benefit is going to expire at the end of July, and the amount of people who are claiming that benefit was 1.5 million people just last week, which makes that the 13th week in a row that more people need the help. But there are some good news: the White House is considering lowering the ceiling from $600, down to $300, or $250 per week as a maximum limit.
Another good piece of news is that a 2nd stimulus check will most likely not be LESS than the first because if they send another $1,200 stimulus check, that would cost them exactly $413 billion dollars (as it did last time), so no matter who’s budget plan we go with, the 1 2 or 3 trillion dollars, it would still fit within all the budgets. When they polled Americans back in April, 82% said that $1,200 wouldn’t be enough.
Our GDP has fallen by 5% mostly due to lack of consumer spending. In fact, since January 2020, the richest Americans saw the largest drop to spending habits with a negative 16.8%. Meanwhile, the poorest Americans saw only a -4% drop and the middle class dropped somewhere in the middle at -9.9%. Unfortunately if you’re looking for a NEW job right now, new job postings have declined by 16.4%. The total cost for the economy to recover is estimated to be around $1 TRILLION dollars PER YEAR for the next 3 years to get back to normal.