House Hopes to Pass $2 Trillion Coronavirus Relief Package Today

Taxes

The lower chamber will “move quickly” to pass the Senate’s stimulus bill. Speaker Nancy Pelosi predicts broad support from both parties for the $2.2 trillion coronavirus relief measure. She says lawmakers will try to approve the bill by voice vote without requiring members to return to Capitol Hill. But a single objection could doom the effort. 

JCT puts a price tag on the tax portions of the bill. The Senate didn’t wait to see the price before passing the measure, but the Joint Committee on Taxation put out its cost estimate yesterday. It projects the CARES Act would cut taxes by about $700 billion in 2020 alone, with nearly half of the cost for the individual tax rebates. Most provisions are scheduled to expire after a year, so the cost will fall sharply in future years. If the provisions really do expire, that is. 

How will the recovery rebates work? TPC’s Howard Gleckman walks tax filers through the direct payments maze. For many, eligibility is simple and automatic. For some, it isn’t.   

When will I get my money? Treasury Secretary Mnuchin now says relief checks  will arrive within three weeks, a bit longer than the two weeks he previously predicted. But the IRS has not yet announced a schedule for disbursement. Taxpayers who have filed 2019 tax returns with direct deposit information will  receive direct deposit payments faster  than those who will need paper checks. Based on prior experience, TPC’s Janet Holtzblatt thinks it is more likely to take months than weeks.

In case you missed it: The coronavirus relief package includes a payroll tax delay, not holiday. The legislation postpones payroll tax payments for employers. It allows companies to pay their 2020 payroll taxes through the end of 2022. They will have to pay half by the end of 2021.

Never too soon to speculate about stimulus #4. Among the items being floated by Democrats: an expansion of the Earned Income tax Credit, more money for state and local governments, and expanded paid family leave. For now, most Republicans are holding their fire.  

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