Senate Republicans Prefer Stimulus Check 2 over Trump's Tax Cuts

Senate Republicans Prefer Stimulus Check 2 over Trump's Tax Cuts

As negotiations for the next economic stimulus package move forward, a top Senate Republican may be urging lawmakers to lean toward two stimulus checks rather than a payroll tax cut.

According to CNN's Manu Raju, Senator Chuck Grassley (R-Iowa) said he prefers direct payments to small tax cuts deducted from workers' paychecks.

"If you get a check, you can go to ....... I think that would have a better economic impact than $30 each dripping from your paycheck," Grassley, who chairs the Senate Finance Committee, said Monday. He also suggested that cash payments are more likely to encourage people to spend. [Vice President Mike Pence has expressed support, and White House economic advisor Larry Kudlow said he expects the payroll tax cut to be part of the next stimulus package.

Kudlow also stated that "direct checks will probably be part of the upcoming legislation." Meanwhile, President Trump told Fox News that he may not sign a bill that does not include a payroll tax cut.

One criticism of the payroll tax cut is that it will not help those who are unemployed and not currently receiving a paycheck - arguably those most in need of a stimulus package. Grassley also expressed concern about the public perception that the tax cut would affect the Social Security fund

and that the tax cut would not help those who are unemployed and currently receiving paychecks - arguably those most in need of a stimulus.

The Senate will be working on a stimulus package this week. Specific proposals have not yet been offered, but the bill could include additional direct benefits (although possibly limited to workers earning less than $40,000 a year) and ongoing federal unemployment benefits (although reduced).

As of July 20, negotiations over the second round of the stimulus package are ongoing. If the Senate approves the bill by August 10, when the next recess begins, as Treasury Secretary Steven Mnuchin and House Democrats are urging, Americans could receive benefits in August.

However, if debate stalls, new direct benefit payments and tax cuts may not be implemented until mid-September or later.

The first of the $1,200 in direct benefits provided by the Cares Act is being paid gradually. If you have not yet received it but believe you are eligible, use the IRS Get My Payment app to search for your status or call a representative at the IRS stimulus check phone number.

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