Thoughts on a government cash stipend

[bjl584]

Do you think that was a bad thing? I can't tell from your post.

I think part of the reason for all of the mandated closures is that people wouldn't follow directions otherwise. Look at the spring break crowds on the beaches in Florida. Total lunacy in the face of what's occurring but it didn't stop them. So unless the local/state authorities mandate closing the beaches, those idiots would continue to gather there.

No, I don't think that it is a bad thing.
I fully support their actions.

My main point was that I agree with the Treasury that there should be a sense of obligation by the government to help the American people since the government caused the pain (as necessary as it was)

[myrdale]

For me I just think of it as a tax refund because I've paid far more of that into the system.

For other's who don't pay into the system, it's an unearned income.

Have they said if we're going to have to pay tax on it?

[rennigade]

my wife and I talked about this. Hopefully, people in our situation do not receive any checks. We do not need it, we're both working. There are people that actually need it. Send ours to them!

[disneysteve]

my wife and I talked about this. Hopefully, people in our situation do not receive any checks. We do not need it, we're both working. There are people that actually need it. Send ours to them!

Understand that the point of these payments isn't to replace lost wages but to stimulate the economy. They want you to go out and spend those checks. If you and your wife each get $1,000 and go out and shop or dine or take in some entertainment or travel, you'll be helping the people that need it, too.

What they don't want is for people to get those checks and deposit them in their savings accounts.

[~bs]

Looks like it's going to be for incomes under 75k/150k. Complete phaseout at 100k/200k. I aint getting **** Thing is, 100k in a high COL area is very different than 100k in low COL area.

[QuarterMillionMan]

Los Angeles news.

[~bs]

Below is the actual bill. It phases out to $0 once you hit $99k on a proportional scale.

‘‘(d) LIMITATION BASED ON ADJUSTED GROSS IN20 COME.—The amount of the credit allowed by subsection 21 (a) (determined without regard to this subsection and sub22 section (f)) shall be reduced (but not below zero) by 5 per23 cent of so much of the taxpayer’s adjusted gross income 24 as exceeds $75,000 ($150,000 in the case of a joint re25 turn).

https://www.republicanleader.senate.gov/imo/media/doc/CARES%20Act%20Final%20-%20Mar%202020.pdf

[rennigade]

Understand that the point of these payments isn't to replace lost wages but to stimulate the economy. They want you to go out and spend those checks. If you and your wife each get $1,000 and go out and shop or dine or take in some entertainment or travel, you'll be helping the people that need it, too.

What they don't want is for people to get those checks and deposit them in their savings accounts.

Thats unfortunate. I remember going through this years ago when everyone received $500.

[alliecat79]

I was happy to see that people making over a much lower threshold than I anticipated will not be getting a check (that includes my husband and I). For now, our employment is stable. Money needs to go to those who are in dire straights.

[riverwed070707]

Feels poorly timed, not enough and out of order to me. Right now people need to figure out how to pay rent, cell bills, and groceries with a sudden loss or drop of income. $1000 isn't going to be a drop in the bucket for those most impacted by closures. New York put a moratorium on evictions for unpaid rent - I understand people with job loss need a place to live but how long can landlords carry those expenses until they can't pay their mortgage? $1000 won't cover rent for most people in the NYC metro, let alone other basic necessities. I am in the events industry and have colleagues who are simply without work until at least June - $0 income, no benefits. Beyond that, if it's an economic stimulus, what are we supposed to spend it on when everything is closed? We can't help the restaurant workers when the restaurants are closed, can't support service workers when people are being told to stay home. Eventually when this all calms down, would it be helpful? Ya probably but we have bigger fish to fry before we get to that point.

[~bs]

Feels poorly timed, not enough and out of order to me. Right now people need to figure out how to pay rent, cell bills, and groceries with a sudden loss or drop of income. $1000 isn't going to be a drop in the bucket for those most impacted by closures. New York put a moratorium on evictions for unpaid rent - I understand people with job loss need a place to live but how long can landlords carry those expenses until they can't pay their mortgage? $1000 won't cover rent for most people in the NYC metro, let alone other basic necessities. I am in the events industry and have colleagues who are simply without work until at least June - $0 income, no benefits. Beyond that, if it's an economic stimulus, what are we supposed to spend it on when everything is closed? We can't help the restaurant workers when the restaurants are closed, can't support service workers when people are being told to stay home. Eventually when this all calms down, would it be helpful? Ya probably but we have bigger fish to fry before we get to that point.

Those stay notices on rent for individuals and businesses dont really help because they will still owe the money after....

[riverwed070707]

Those stay notices on rent for individuals and businesses dont really help because they will still owe the money after....

Agree. Not only does it not help the tenants, it also makes the problem worse by putting pressure on landlords/businesses to carry the load, which may or may not be feasible depending on how long this draws out. They still have to carry insurance, utilities, mortgages, property management fees... yes, in theory, there should be reserves but what happens when those are depleted? Never mind the loss of income that will never be recovered and eventual increase in eviction process fees.

[Drake3287]

Certainly not an expert on this proposal but I don't believe this money is meant to "save" anyone from being out of work or not being able to pay rents and such. It's more of a financial stimulus to jump start the economy once this situation starts to end. I'll feel somewhat guilty taking it when I'm better off then many. Like many of us, we visit a handful of "regular" restaurants that know us well. I'll be more inclined to give these workers an extra big tip to help offset some of their loss. Living in the Bay Area these workers have it more difficult than other area's not hit with the shelter in place orders.

[QuarterMillionMan]

How exactly will this work? I get it that under $75K single person will get $1200 and decreases up to $99k. Will it be automatic, IRS issuing the funds based on 2018 tax returns (or 2019 returns)? Do we file for the $1200 using our 2018 returns or 2019 returns? Enlighten me please.

[myrdale]

How exactly will this work? I get it that under $75K single person will get $1200 and decreases up to $99k. Will it be automatic, IRS issuing the funds based on 2018 tax returns (or 2019 returns)? Do we file for the $1200 using our 2018 returns or 2019 returns? Enlighten me please.

I read an article on nbcnews this morning which had an extenstive Q&A section that I think addresses much of this. If I can find the link I will add it.

https://www.nbcnews.com/politics/congress/coronavirus-checks-direct-deposits-are-coming-here-s-everything-you-n1168936

It's going to be based off of your 2019 tax return.
I took it to be how you received your refund is how this will be distributed.
It will decrease $5 for every $100 you make over $75,000.
If you made over $99,000 last year, but you lost your job this year, you can apply for it on next years taxes based on this year's income.