Fourth stimulus check: bipartisan infrastructure bill, California stimulus, Social Security 2022, Child Tax Credit...| summary 11 november
Sen. Kelly meets with Navajo Nation to discuss infrastructure bill
The new infrastructure bill is one of the first major bipartisan legislative achievements of Joe Biden's presidency, after he ran on the promise that he was able to unite a partisan Washington. The President has not yet signed the bill into law but after passing both Houses of Congress but he intends to do so next week.
The White House had hoped to pass the bipartisan infrastructure bill in a two-bill process, alongside the larger Build Back Better social safety net proposals. However a small number of moderates in the Senate have insisted on seeing further financial detail on the bill before casting their vote.
The vast majority of eligible families will have begun receiving the monthly payments automatically in July, but studies have found that many low-income households are missing out. Eligibility for the programmes is based on tax filings, but not everyone is required to file a return. Those who haven't yet done so have until 15 November to sign up to receive the monthly payments.
Lawmakers push for Social Security 2100 bill
Numerous Democrats in Congress have voiced their support for Social Security 2100: A Sacred Trust, which aims to ensure that the Social Security system is sufficiently funded for years to come. Current estimates suggest that the funds which allow the programmes to continue could run dry by 2034 and recipients could then receive a 20% decrease on their allowance.
The vast majority of eligible families will have begun receiving the monthly payments automatically in July, but some low-income households may initially have missed out. Those who missed out in recent months could be in line to receive up to $1,800 per child in December.
The IRS bases eligibility on the information submitted in recent tax returns, but some families do not earn enough to be required to file taxes. Here's everything you need to know about the upcoming Child Tax Credit deadline and how to claim your payments...
How is the Child Tax Credit affecting families?
Four months into the Child Tax Credit expansion and families up and down the country are seeing the benefits of the newreformed programme, which has been particularly important given the financial strain many are under. The pandemic has caused almost unparalleled chaos for budgeting, and the monthly payments have provided an additional cash boost for some 35 million households every month.
Families will receive their last payment of the year on 15 December. The same amount that has been paid over the previous five months will be paid to families.
However, if you have yet to receive any payments because you did not file taxes in 2019 or 2020, you could see much larger payments. In December these families will receive a lump-sum payment of $1,800 for younger children (under six), and $1,500 for those between six and seventeen.
Those who do not file taxes and have yet to receive any payments for the child tax credit have unit 15 November to sign up. Families can provide the IRS with the necessary information those the getctc.org.
The Senior Citizens League (SCL) has reported that the cost of living in the United States has increased more than 100 percent, while social security benefits have only increased 55 percent.
The SCL is calling on Congress to send a $1,400 stimulus check to all Social Security beneficiaries to help increase their purchasing power.
While this check may not help beneficiaries in the long run it can help people who are feeling the financial crush from increased inflation. Read more.
Markets respond to increases to inflation
CNBC reports on the market impacts of inflation. After the Bureau of Labor Statistics reported that prices have increased 6.2 percent compared to this time last year. This is the biggest increase in thirty years.
In response to this the Federal Reserve may consider raising interests rates from the low levels that have been available in recent years.
Morning Consult projects inflation to stabalize in November
After historic inflation takes hold in the United States, many are worried trends will continue in their upward trajectory. Morning Consult's projections show that while prices are not expected to decrease, they may remain at their current level.
To better understand the chances of Congress passing a fourth stimulus check, our team took back at the negotiations that led the approval of the first three. Read more.
Covid-19 has changed the way we spend our time and our money. More products are being delivered than ever before. That's because people have a little more breathing room than they did last year. That's a good thing but also means we’ve got higher demand for goods at the same time we're facing disruptions in the supplies to make those goods. That's why it's so important that we do everything in our power to stabilize the supply chain.
Consumers are paying 6.2 percent more on goods and services compared to this time one year ago. For those on a fixed income, like Social Security this can have extremely dangerous impacts as their purchasing power can decrease suddenly during eras of high inflation.
The Seniors Citizen League reported hearing from seniors that “that people are cutting their spending on prescriptions and groceries because that’s the last things they have left to cut.”
Read our full coverage for information on what lawmakers have proposed in relation to increasing the 2022 COLA.
After increasing briefly during the pandemic, labor participation of veterans in the United States continued to decline. Meanwhile, partipation of non-veterans has increased steadily since its significant decline seen in April 2020.
What are the chances of the reconciliation bill passing this year?
The organization Tax Notes, puts the probability of the $1.75 trillion reconciliation bill passing at 58 percent in the House of Representatives, and 52 percent in the Senate.
Many members are waiting for the full report on the budget implications of the package which is currnetly being drafted by the Congressional Budget Office.
Lead pipe contamination will cost Michigan and Flint $626 million
Residents of Flint will get $626 million from a settlement over lead pipe contamination in the city. The bulk of the money will go to children which are more adversly affected by lead poisoning.
The money for the settlement will come from the state of Michigan and the city of Flint. The mass poisoning began in 2014 when the emergency manager, who then-Governor Rick Snyder put in control of the city replacing the elected-mayor, changed the sourcing of the city's water from Detroit's water system to the Flint river.
The river water corroded the lead piping of the city's water system exposing residents to extremely high concentrations of lead. Residents were not warned of the danger for 18 months and nearly 100,000 people were affected in the city.
The bipartisan infrastructure bill passed in Congress last week includes $55 billion for cleaning up America's water. It's estimated that there are between 6 to 10 million lead service lines across the nation. President Biden is due to sign the bill on Monday when lawmakers return from a week-long recess.
The IRS announced the annual inflation adjustments when filing tax returns in 2023. The seven tax brackets remain the same, but income limits have changed.
$1.2 trillion infrastructure bill covers less than half of needed investment
The $1.2 trillion bispartisan infrastructure bill is being called historic, it is a feat that previous administrations have tried but failed to do. It will be the biggest investment in US bridges, roads, rail and much more in nearly 70 years.
However, that amount is less than half of the $2.59 trillion the US needs to spend on its aging infrastructure. In March the American Society of Civil Engineers gave US infrastructure a “C-” overall, labeling it in “mediocre condition.” Yet that was an improvement from the "D+" in 2017.
Biden's investment packages more popular than the President himself
A new poll from Monmouth University found President Biden's popularity continues to slip from its high of 54 percent in April down to 42 percent in its most recent survey. Part of the discontent with Biden lies with many feeling he has been unable to deliver on his promise to get a polarized Washington working. Furthermore an increasing number think the President is not helping either the middle class or the poor.
A majority of Americans still support the legislative proposals that he wants to enact.
The $1.2 trillion bipartisan infrastructure bill passed Congress last week and Biden plans to hold a signing ceremony next Monday. Support for the bill is down slightly from previous polls but still garners 65 percent approval.
The Build Back Better didn't get its vote in the Houe on Friday as expected due to objections from moderates to voting on it without a CBO score on its cost. 62 percent of Americans support the proposal a rate that has held steady over the months.
Biden expected to sign infrastructure bill on Monday
President Biden's signing ceremony will include members of Congress, governors and mayors from both parties, the White House announced on Wednesday.
"At the signing ceremony, the President will highlight how he is following through on his commitment to rebuild the middle class and the historic benefits the Bipartisan Infrastructure Deal will deliver for American families," according to a news release from the White House.
Congress finally passed the $1.2 trillion bill last week after it was held up for three months in the House with progressive Democrats trying to use it as leverage to get the Build Back Better Act through at the same time.
In the end the latter got held back awaiting a CBO score on how much it will cost but Speaker Pelosi hopes to pass the Build Back Better Act next week. It would then go to the Senate where its future is even more uncertain.
Build Back Better bill Biden's answer to inflation
Last month the US saw another record rise in year-on-year inflation as the economy reinflates coming out of the damage wrought by the covid-19 pandemic. President Biden and his team are hitting the road to sell the bipartisan infrastructure bill and the Build Back Better Act as remedies for the spirally inflation.
The latter would be felt more immediately by bringing down the cost of childcare and healthcare among other measures in the sweeping "care economy" bill which still needs to be passed. The former will make long-overdue investments that will improve logistics across the nation but will take longer to implement.
What will the government do about inflation?
Federal data released Wednesday showed inflation rising far above expectations in October.
The consumer price index, which tracks inflation for a range of staple goods and services, rose 0.9 percent last month and 6.2 percent in the 12 months leading into October, the highest annual inflation rate since November 1990. Most of October’s inflation was driven by soaring energy and food prices.
Time running out to sign up for 2021 Child Tax Credit
Although the IRS automatically enrolled taxpayers for the 2021 Child Tax Credit advance payment scheme, they could only do so for those who filed a tax return in 2020 or 2019, if not, parents needed to use the agency's online Non-Filer tool to sign up.
The IRS began sending monthly payments in July and there remain two installments this year on the tax credit. The payments this year are for half the credit, the other half can be claimed on tax returns filed in 2022. Those that haven't enrolled yet, will still get half the credit this year, but the deadline to sign up is 15 November.
Senator Joe Manchin may delay President Joe Biden's "Build Back Better" legislation until next year over inflation worries, Axios reported on Wednesday, citing people familiar with the matter.
House of Representatives Speaker Nancy Pelosi said on Tuesday that the House intends to pass the "Build Back Better" legislation the week of November 15. However, a block from the Senate would put the bill on ice.
A deal with Senator Joe Manchin of West Virginia (D-WV) was announced by the White House on 1 November which said that the Senator was "prepared to support a Build Back Better plan that combats inflation, is fiscally responsible, and will create jobs."
However, shortly after Sen. Manchin hosted a press conference where he said he was not used convinced and was interested in continuing negotiations to create a "sensible reconciliation package that strengthens our nation.”
The fate of the Child Tax Credit lies in the passage of $1.75 trillion reconciliation bill. Should the reconciliation bill be passed, the CTC with its current eligibility requirements would be extended one more year. Under the American Rescue Plan, changes to the structure of the credit were made which expanded eligibility to more than twenty-four million children.
In 1984, US tax law was updated to impose income taxes on social security beneficiaries who have an annual income above a certain limit. When the law was established only around one in ten recipients was required to pay income tax.
The Social Security Administration projects that through 2050, the percent of beneficiaries required to pay income tax is expected to increase to fifty-six percent.
Does my state tax Social Security payments?
Social Security payments are a vital source of income for tens of millions of Americans. The generations-old programme is designed to offer monthly financial support that is personalised to the recipient's work history and living arrangements. However, some states choose to tax those payments and leave their residents missing out.
Last month the Social Security Administration (SSA) announced a huge cost-of-living adjustment (COLA) for Social Security recipients in 2022. The 5.9% increase is the largest for 40 years and reflects the tough financial situation that many find themselves in because of the pandemic.
The increase will affect close to 70 million Americans who receive either Social Security or Supplemental Security Income (SSI) benefits. SSI is designed to help those who are unable to earn sufficient wages, typically due to a disability or age.
Here's whenthe boosted payments will land.
Last month the Social Security Administration (SSA) announced an historic increase for beneficiaries, reflecting the damaging effects that covid-19 has had on the economy. Each year the SSA implements a cost-of-living adjustment (COLA), which is designed to increase benefits in line with inflation.
That figure for the 2022 is 5.9%, meaning that recipients of a Social Security programme will soon benefit from the largest COLA increase since 1983. This means a $59 increase for every $1,000 of benefits received.
The increase will also affect the disability compensation payments issued by the Department of Veterans Affairs (VA), although the figure on offer can differ.
Good morning and welcome to AS USA's dedicated stimulus check live feed for Thursday, 11 November 2021. President Biden remains intent on passing major legislation to help boost the nation's post-covid economic recovery.
Central to that will be the passage of the Build Back Better legislative agenda, which includes a Child Tax Credit extension, as well as the implementation of the bipartisan infrastructure bill.