money Coronavirus stimulus checks: How Biden's and GOP proposals differ
The GOP’s scaled-down $618 billion stimulus plan includes another round of stimulus payments, but the amount and the income thresholds are lower than what President Joe Biden proposed in his $1.9 trillion stimulus package.
Read more: Here's what to do if you haven't gotten your stimulus check
Under Biden’s plan, more people would get a stimulus check and the average payment would be higher than the GOP’s plan provides. Almost 95% of tax filers would receive a check under Biden’s plan, with an average payment of $2,273. On the other hand, around 74% of taxpayers would get a payment under the GOP proposal, averaging $982, according to estimates by the Tax Foundation.
Biden’s plan would also be more expensive — costing $465 billion — versus the GOP’s $220 billion price tag for the direct payments.
Under Biden’s stimulus plan, eligible recipients would get a $1,400 payment plus $1,400 for all dependents, while qualifying Americans would receive a $1,000 payment plus $500 for all dependents under the Republican proposal.
Read more: Here's what's in Joe Biden's $1.9 trillion 'rescue plan' that could help your wallet
Who qualifies for a payment under the Republican plan also differs. Single filers who make up to $40,000 are eligible for the full payment, and those who earn under $50,000 qualify for a reduced check. Under Biden’s plan, single filers who make up to $75,000 qualify for the full payment, while those who earn less than $100,00 get a phased-out payment.
The bottom 20% of U.S. households would see a bigger lift from Biden’s plan, with an average $2,172 payment boosting their annual after-tax income by 25%. Under the Republican plan, the same group’s income would increase by 15% after receiving a $1,278 average payment.
The top 80% to 90% of U.S. households would get an average payment of $2,456 under Biden’s plan, but just $33 on average under the GOP plan.
Read more: Everything you need to know about the second stimulus payment
The Republican proposal also has faster phaseout rates than Biden’s, one of the reasons fewer people would get a payment. Under Biden’s plan, the phase-out rate would be 5% per dollar of qualified income or $50 per $1,000 earned, while the rate for the GOP plan is double that — 10% per dollar of qualified income.
Additionally, inmates would be eligible for a stimulus check under Biden’s plan, but ineligible for one under the GOP plan.
Denitsa is a writer for Yahoo Finance and Cashay, a new personal finance website. Follow her on Twitter @denitsa_tsekova.
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