Coronavirus stimulus checks: How Biden's and GOP proposals differ
The GOP's scaled-down $ 618 billion stimulus plan calls for another round of stimulus payments, but the amount and income thresholds are lower than what President Joe Biden proposed in his $ 1.9 trillion stimulus package.
Read more: What to do if you haven't received your stimulus check
Under Biden's plan, more people would receive a stimulus check and the average payment would be higher than the GOP plan. Nearly 95% of taxpayers would receive a check under Biden's plan, with an average payment of $ 2,273. On the flip side, around 74% of taxpayers would receive a payment under the GOP proposal, which the Tax Foundation estimates, averaging $ 982.
Biden's plan would also be more expensive at $ 465 billion than the GOP's $ 220 billion price for direct payments.
Under Biden's stimulus package, eligible recipients would receive a payment of $ 1,400 plus $ 1,400 for all dependents, while qualified Americans would receive a payment of $ 1,000 plus $ 500 for all dependents under the Republican proposal.
Read More: Here's what Joe Biden's $ 1.9 trillion "rescue plan" says that could help your wallet
Who qualifies for a Republican plan payment also varies. Individual filers earning up to $ 40,000 are eligible for full payment, and those earning less than $ 50,000 are eligible for a reduced check. Under Biden's plan, individual filers earning up to $ 75,000 qualify for full payment, while those earning less than $ 100,000 receive an expiring payment.
U.S. President Donald Trump's name appears on coronavirus scans of Economic Aid sent to citizens across the country on April 29, 2020 in Washington, DC. (Photo by Chip Somodevilla / Getty Images)
The bottom 20% of U.S. households would see a bigger spike from Biden's plan, with an average payment of $ 2,172 increasing their annual after-tax income by 25%. Under the Republican plan, the income of the same group would increase 15% after receiving an average payment of $ 1,278.
The top 80% to 90% of U.S. households would receive an average payment of $ 2,456 under Biden's plan, but an average of $ 33 under the GOP plan.
Read More: Everything You Need To Know About The Second Stimulus Payment
The Republican proposal also has faster exit rates than Biden's, one of the reasons fewer people would get paid. Under Biden's plan, the exit rate would be 5% per dollar of qualified income, or $ 50 per $ 1,000 made, while the rate for the GOP plan would be twice that - 10% per dollar of qualified income.
In addition, inmates would be eligible for a stimulus test under Biden's plan, but not under the GOP plan.
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Denitsa is a writer for Yahoo Finance and Cashay, a new personal finance website. Follow her on Twitter @denitsa_tsekova.
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Originally published February 2, 2021 at 8:53 pm
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