As the coronavirus pandemic continues, lawmakers on Capitol Hill are looking to bail out the U.S. economy.
The White House and Senate reached a deal this week on an estimated $2 trillion stimulus package. For comparison’s sake, the two stimulus packages passed into law during the Great Recession cost half as much, totaling roughly $983 billion.
Why does this particular coronavirus stimulus package matter? There are a lot of numbers being thrown around, but the answer is simple: it either ensures you continue to have a job, or you get some much-needed cash in your pocket.
Starting off with the first point, small businesses (which make up for 99.9% of all American firms) are expected to get roughly $350 billion in loans. According to JPMorgan Chase & Co.’s estimate in 2010, small businesses accounted for 45% of the gross domestic product and produced 33% of all U.S. exports in 2015, totaling $440 billion.
Why am I throwing all these numbers around? It’s because small business drives the economy. They’re interested in keeping people employed so that they can continue to do what they love to do. After all, teamwork makes the dream work, right?
Now, to the second point about getting cash in your pocket, here’s how you qualify and what you need to know.
Individuals are eligible to receive $1,200, while married couples can receive double that amount, $2,400. If you have children, you can receive $500 per child. However, there are restrictions. If you earn more than $75,000 as an individual, $112,500 as head of household or $150,000 if married and filing jointly, those checks start to diminish. Finally, in order to be eligible, you have to have a valid Social Security number, have filed your 2018 tax returns, or have filled out a 2019 Social Security Benefit Statement, better known as a 1099 form, for those who are self-employed. In addition to all this, unemployment benefits will be expanded, so if someone lost their job as a result of the coronavirus pandemic, you’re eligible to receive benefits.
Taking away the partisan debates that are being had about the bill in Washington, the goal here is to reduce the economic damage that many people are experiencing as a result of this pandemic.
