Small businesses, which are currently on life support due to the pandemic will most likely not be able to survive these increases. There is no business relief package being created for these imminent consequences.
Next, is the $1,400-per-person relief checks, which – while happily received by many, have proven to not be stimulative to the economy. The typical family has received, on average, over $11,400 over the past year – but there has been little discussion on the tax implications or consequences for families for these irresponsible payments – particularly to those who did not lose wages.
Government analytics and reports have shown that rather than stimulating the economy, much of those “one-time checks” were saved rather than spent. Based on the results of the $1,200 and subsequent $600 stimulus payments that were saved, this new $1,400 is projected to be saved at a much higher rate.
The Biden plan will also extend the emergency unemployment benefit through September which an additional $400 federal add-on that would exceed the lost wages for most laid-off workers. Beyond this, his plan to spend over $350 billion to state and local government, with minimal oversight, could extend beyond what is required.
