Washington – President Biden and moderate Senate Democrats have struck a deal to limit the opportunity for direct participation stimulus controls to Americans, by lowering the income level for those who would be eligible for payments, according to a Democratic source.
The Senate is ready to record Biden’s $ 1.9 trillion coronavirus control bill as early as Wednesday. Since the bill is not expected to draw Republican votes, all Democrats will have to back the bill for it to pass, giving moderate Democrats the power to make demands on the president and the Senate leadership.
Under the agreement, direct payments to taxpayers will begin to taper down to $ 75,000 for individuals, with no one eligible for payments more than $ 80,000. For couples filing jointly, the phase-out starts for those making $ 150,000 and ends at $ 160,000.
The shift will reduce the number of Americans who would be eligible for payments under the version of the bill passed by the House on Saturday. The House Bill also phased out payments for individuals making more than $ 75,000 and couples making more than $ 150,000, but the payments were limited to incomes of $ 100,000 and $ 200,000, respectively.
The proposal to lower the maximum amounts for incentive checks would cut an estimated 17 million people, according to the Institute on Taxation and Economic Policy. Their analysis found that 297 million adults and children would benefit from the bill passed in Parliament, but only 280 million people would benefit from the Senate version of the bill. Under both accounts, everyone in the bottom 60% of Americans would benefit.
Speaking at the White House press conference on Wednesday, press secretary Jen Psaki said the president is satisfied with the progress being made on the U.S. start is open to those who are more focused on the cutoffs.
“He is comfortable with the state of the negotiations,” said Psaki. “Of course there will be ongoing discussions.”
The Senate bill also includes $ 400 a week in supplemental unemployment insurance, which expires March 14. These benefits will continue until mid-August. Senator Joe Manchin, who has quickly become one of the most influential lawmakers in the Senate, had proposed cutting benefits to $ 300 a week.
The deal comes after Mr Biden spoke to Senate Democrats on Tuesday and stressed the urgency to adopt the COVID aid package. Mr Biden also met with moderate Senate Democrats in the White House on Monday to discuss the legislation. Democratic Senator Jon Tester from Montana, who attended Monday’s meeting, told reporters the discussion was about “targeting the dollars” in the aid package, but not about reducing it.
Michigan Democratic Senator Debbie Stabenow told reporters that the new phase-out of stimulus controls is a “reasonable compromise.”
“I know in our caucus that there has been tremendous benevolence to work through all of these things with the right and fair disagreements,” added Stabenow. “I think we’re in a really good place and, frankly, and the most important thing is to get this done.”
Democratic Senator Michael Bennet agreed that he believed the deal was “an appropriate way to make this happen.” But Democratic Senator Maria Cantwell expressed skepticism, saying she thought “the package as it was originally created is good to go”.
House Democrats seemed divided on the deal. Congressman Mark Pocan, the former chairman of the Progressive Caucus, told reporters that the phase out was a “foolish and stupid” move intended to “appease the one or two people who can hold things back.” But Richard Neal, chairman of the House Ways and Means committee, said he was “open to changes in the phase-out.”
“If you had to pick or choose an item that more than anything else in the CARES Act saved the US economy, it was unemployment insurance. So the fact that they didn’t touch unemployment insurance with a supplement, I think a good thing, Neal said, referring to the coronavirus control law passed last spring.
The Democrats pass the bill through budget reconciliation, a process that allows for limited debate time and can pass legislation by a simple majority. There will be 20 hours of debate on the package in the Senate, followed by a “vote-a-rama” in which senators vote in quick succession on a series of proposed amendments. Amendments require a simple majority to be added to the bill.
Most of the amendments are expected to be brought by Republicans who want to make the process politically painful for Democrats, but Senator Bernie Sanders has said he will file an amendment for increase the minimum wage up to $ 15 per hour.
While the bill is expected to pass largely along party lines, Republican Senator Lisa Murkowski told reporters on Wednesday that she had not yet made a decision on how to vote. Although she said she “ can’t stand ” that the bill isn’t entirely focused on the coronavirus, she called herself “ Listen Lisa ” because she would listen to what the final proposal would be.
The stimulus check is one of the most popular provisions of the bill, known as the American Rescue Plan. According to a poll from Monmouth University published Wednesday, 68% of Americans say the checks should stay at $ 1,400, even if it means passing the bill with support from only one party. Raising additional unemployment benefits from $ 300 to $ 400 a week is also popular, with the support of 67% of Americans.