LANSING, Mich. (WLNS)— The American Rescue Plan Act of 2021 includes the $1.9 trillion stimulus package which passed the Senate on Saturday, Now, the American Rescue Plan Act of 2021 will go forward with a vote by the House on Tuesday.
Digital reporter Samana Sheikh spoke with Professor Steven Schiestel who specializes in finance at Michigan State University. He provided an in-depth view of why this new bill is good for the economy. Schiestel also says this new check could bring a helping hand to individuals who make up to $75,000 a year, and married couples who have a joint income of $150,000.
“The ultimate use of the dollars is to set aside more money for rainy days, paying down debt,” Schiestel stated, “or probably what the government is really hoping is that it gets cycled back into the real economy.”
The American Rescue Plan Act of 2021 also includes college students, adults with disabilities, and the elderly. Schiestel states Americans who qualify for the stimulus payments are usually based on their 2019 or 2020 tax income. The bill also guarantees unemployment checks where the agreement extends its already existing $300 a week until August.
According to CBS News, The compromise amendment extended the additional unemployment insurance benefits until September 6, this makes the first $10,200 of unemployment insurance benefits non-taxable for households with incomes under $150,000. The only change was that the income limit for non-taxable benefits.
“If I’m an early filer… the system starts to calculate where the tax is going to be based on the current tax bracket,” Schiestel said, “so for example in 2019, if I was a family and maybe my income was 100,000 dollars, and I know that in 2020 circumstances changed….a new job, maybe that number is now 175,000 you’re probably going to want to be aware of that when you file taxes knowing there are stimulus checks coming in.”
Schiestel stated if you read The American Rescue Plan Act of 2021 housing assistance is guaranteed, and a refundable child tax credit for 2021. Children who are from the ages of six to 17-years-old will be able to qualify for $3,000 dollars per child. Plus, kids younger than six-years-old they will qualify for $3,600.
However, Schiestel’s largest piece of advice was to always stay strong, be resilient, and keep a positive attitude with the future of this $1.9 stimulus.
“I think as warren buffet says that if there’s one thing he is going to vote on is the future of America,” Schiestel exclaimed.