The coronavirus pandemic has brought trillions of dollars in unprecedented stimulus to American businesses and workers.Stimulus payments come in waves, and as the pandemic prolongs, it looks like the government will continue to print money to bail out forever economy. But even with widespread mask mandates and travel restrictions still in place, the U.S. economy has seen a swift and swift recovery. Combined with trillions of dollars of stimulus money in the system, inflation exploded in early 2022 to levels not seen in decades. What does this mean for additional stimulus payments in spring 2022?
Federal stimulus may be over
From March 2020 to February 2022, the U.S. government injected roughly $5 trillion in stimulus money into the economy. Of this, about $1.8 trillion went directly to individuals and households, and another $1.7 trillion went to businesses. But the federal government’s appetite for more direct stimulus is waning. A Biden administration appears to be primarily focused on infrastructure spending, while many economists warn that additional stimulus will only accelerate inflation, which hit a staggering 8.5% in March 2022. Until this trend reverses, federal stimulus could be paused, if not ended entirely.
But there is always a silver lining
While parts of the economy are booming, unemployment remains above pre-pandemic levels and other enhancements, such as the expanded child tax credit, have expired. On top of that, many Americans are still struggling. Against this backdrop, numerous proposals for additional stimulus have been made, ranging from a fourth stimulus check to recurring monthly payments of $2,000. If the economy turns over again, or if another variant of the coronavirus starts increasing hospitalizations and deaths again, calls for additional stimulus could be louder.
National Stimulus Package Still in Effect
While the federal government appears to be stepping back from the stimulus business for now, many states have taken the ball and are developing their own stimulus plans. While not all will be approved, some states are working to provide more aid to residents.
Residents have benefited from California’s surplus for the past two years. The state sent two rounds of direct stimulus checks to residents in 2021 and early 2022, and in 2022 Gov. Gavin Newsom proposed issuing a $400 debit card to help offset rising gas costs. Residents will get one card per car they own, up to two per household or $800, with payments due as early as July.
Democrats in Illinois have proposed stimulus checks of $100 per person and $50 per child per household to reach residents’ mailboxes by September. The proposal would also provide up to $300 in property tax relief checks, a six-month moratorium on grocery and gas tax increases, and a 10-day freeze on school supplies taxes in August.
Idaho residents will receive a rebate check or direct deposit of 12% of their 2020 taxes or $75, whichever is greater.
Maine Governor Janet Mills is proposing an $850 stimulus check to state residents. The money will come from the state’s $682 million surplus.
New Mexico residents who file a joint return and earn less than $150,000 will receive a one-time $500 tax rebate. Single filers earning less than $75,000 are eligible for a $250 rebate. Other credits include $1,000 for full-time hospital nurses, a refundable child tax credit of up to $175 per child, a three-year partial income tax exemption for military retirees, and an extension of the solar market tax credit equal to 10% of qualifying purchases and installation costs.
Indiana lawmakers approved an expansion of the state’s $125 stimulus payment to residents to make about 450,000 low-income residents eligible.
Governor Brian Kemp recently signed into law the stimulus payments for Georgia residents. These one-time refunds will provide $250 for single taxpayers (or married filing separately), $375 for heads of household, and $500 for joint filers.
New Jersey Gov. Phil Murphy is proposing a $500 stimulus check to include undocumented immigrants to low-income taxpayers who file using tax ID numbers instead of Social Security numbers.
Virginia lawmakers are discussing details of a $300 stimulus check to all Virginia taxpayers. Two other proposed bills are seeking to reduce or eliminate the state’s grocery tax and suspend the state’s 26.2-cent gas tax for a year.
New York Gov. Kathy Hochul has proposed a property tax rebate of about $425 to $970 for the state’s low- and middle-income families. Among other actions, including tax breaks for businesses, the state has imposed a moratorium on state taxes on motor fuel until December.
In January, Gov. David Iger proposed a $100 rebate for all taxpayers and dependents. In April, the Hawaii House Finance Committee upped the ante, approving $300 checks for taxpayers earning less than $100,000 a year and $100 checks for taxpayers earning more than $100,000.
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