Thanks for subscribing! Please check your email for further instructions.
The Congress was instructed to “go bold, be brave, go big” – and they did. The CARES Act is a substantial help to Americans – not to think another, 4th package, won’t one day be needed.
Coronavirus Aid, Relief and Economic Security Act:
Reprinted from the Tax Foundation:
On Friday afternoon, the Coronavirus Aid, Relief and Economic Security (CARES) Act passed
the House of Representatives by a voice vote. The bill now moves to the
President for signature. The bill builds upon earlier versions of the CARES Act
and is intended to be a third round of federal government support in the wake
of the coronavirus public health crisis and associated economic fallout,
succeeding the $8.3 billion in public
health support passed two weeks ago and the Families First Coronavirus Response Act. It is
the product of negotiations between Democrats and Republicans for a bipartisan
response to the crisis.
The CARES Act builds on the two former pieces of legislation
by providing more robust support to both individuals and businesses, including
changes to tax policy. The bill includes:
We estimate that the rebates would increase taxpayer after-tax income by about 2.59 percent, ranging from 16.33 percent at the lowest quintile and dropping to 1.89 percent for the 80th to 90th percentiles. The rebate is structured progressively but is not available to those who have not filed taxes. These non-filers tend to have lower incomes. Additionally, Social Security Administration benefit information may be used for low-income taxpayers solely relying on Social Security benefits.
We estimate that nearly all filers below the 80th
percentile will receive a rebate, but only 0.1 percent of filers above the 99th
percentile will receive a rebate due to the rebate phaseouts. The average
rebate will be about $1,523, ranging from $1,436 for the 0 to 20th
percentiles to $45 for the 95th to 99th percentiles.