World News – US – Congress reaches agreement on aid package, including new economic tests

On 16. People walk past the U.S. Capitol in Washington, DC on December 10, 2020. – Leaders of Congress continue . . . [] The 16. December 2020 announced that they were nearing a long-awaited deal on a stimulus package for the U.S. economy, while the Federal Reserve will provide updated projections on uncertain outlook. A federal aid package to support businesses and unemployed people in difficulty is seen as essential to get the world’s largest economy back on its feet in the face of the resurgence of Covid-19 infections. (Photo by ANDREW CABALLERO-REYNOLDS / AFP) (Photo by ANDREW CABALLERO-REYNOLDS / AFP via Getty Images)

Congress has finally agreed on a COVID aid package. It is the first major stimulus measure by Congress since the signing of the Coronavirus Aid, Relief and Economic Security Act or the CARES Act in March 2020.

There is no text available yet (I will post a link when it is available). Based on stakeholder reports, here is a brief overview of what was likely to have been included – and what was not. Note that this could change as there has not yet been a vote with Sen. Mitch McConnell (R-KY) promises to do this asap (I will update it when I have more details). .

unemployment benefits. The bill would extend the pandemic unemployment insurance programs created under the CARES Act by 11 weeks until March 2021. The bill would also extend federal unemployment insurance benefits, but at half the previous rate (just $ 300 per week). .

& Small Business Assistance paycheck protection program. The bill would expand the PPP program to allow some companies to obtain an additional loan. Also included? Simplifying the loan for those over 150. Borrow $ 000 or less. However, it is still not known if business expenses paid with the proceeds of PPP loans are fully tax deductible – some deductibility was expected to be included but with safeguards (we will have to wait for the final text, for details). .

From Rep. Nancy Pelosi (D-CA): The agreement covers over $ 284 billion in first and second renewable PPP loans, expanded PPP eligibility for nonprofits and local newspapers, television and radio stations, major changes to PPP for the smallest businesses and nonprofits to better support independent restaurants, allocating $ 15 billion to live venues, independent cinemas, and cultural institutions. The agreement also includes $ 20 billion in targeted EIDL grants, which are vital for many of the smaller businesses on Main Street.

Earned Income Tax Credit & Tweaks for Child Tax Credit. The agreement allows families to receive EITC and CTC based on their 2019 income. This has a significant impact on families whose incomes have dropped due to COVID.

Transport financing. The bill is expected to extend the Payroll Support Program (PSP), which provides loans to the ailing aviation industry. The proposal would also provide additional funding for airports, coach and bus companies, public transport systems and Amtrak.

Healthcare, including vaccine development & Distribution. The bill would send more to hospitals and healthcare providers, and allocate more money for testing. The proposal would also provide millions in grants and funding for the development, infrastructure and distribution of vaccines.

Student Loan Extensions. The bill would extend the forbearance provisions for federal student loans (these currently expire Jan.. January 2021). .

Rent Assistance. The package would extend the eviction moratorium until December 31. January 2021. There are also funds for rent relief that can be used for future rent payments and incidental expenses, as well as re-rent or incidental expenses owed.

Food aid. The agreement is expected to increase the benefits of food brands (Supplemental Nutrition Assistance Program, or SNAP). . It would also expand the Pandemic EBT program to families with children in childcare, and support the Special Nutritional Complementary Program for Women, Infants and Children (WIC) to allow participants to purchase additional fruits and vegetables. Seniors are also included, with funding for Seniors Nutrition Services, including Meals on Wheels, and the Commodity Supplemental Food Program to bring food boxes to more seniors.

post office. The proposal makes it clear that the $ 10 billion aid originally earmarked for the USPS under the CARES Act. USD would not require any repayment.

Excess funds. The bill was held up amid controversy over what to do with excess funds from the CARES bill, with Democrats seeking to reassign it and many Republicans standing with Treasury Secretary Mnuchin to return those funds to the general fund. The final bill is expected to include the compromise language.

Stimulus tests. A last-minute push to include stimulus checks was successful. New checks for $ 600 per person (yes, even for children) are included in the new aid package. Checks still expire for those age 75. Earn $ 000 (150. $ 000 for married couples filing together). . According to reports, adult relatives – those over the age of 18 – are still not qualified. However, people filing with someone using an ITIN can collect a check (but not the person with the ITIN). .

3 martini lunches are back. The bill reportedly includes a provision to increase the business meal deduction to 100% (currently 50%) for 2021 and 2022.

State and local funding. Originally included on the bill, state and local funding has been removed. However, Congress extended the deadline for states and cities to use pre-approved money under the CARES bill. States like mine, Pennsylvania, that hadn’t spent all of their funding would lose it if they weren’t spent by the end of the year. The deal would instead extend the deadline to the end of next year.

Liability protection. Providing corporate liability protection as a result of the pandemic has been a serious stumbling block between the Senate and the House of Representatives. The framework had originally indicated that “there is, in principle, a greeting as a basis for negotiating in good faith”, but it has stalled.

CARES Act Corrections / clarifications to stimulus checks. Earlier this year the House was hoping for a language that would replace the term “dependent” with “qualifying dependent” for the purposes of the first stimulus test. Other fixes included coding payments to avoid setoffs and clarifying that representative payees could receive checks. There is no indication that these corrections / clarifications will be included in this latest support package.

The total price of the invoice is estimated at $ 2. 3 trillion, but that includes about $ 1 in funding. 4 trillion government spending.

Years ago I was in law school in moot court in an oversized, itchy blue suit. It was a terrible experience. In a desperate attempt to avoid something

Years ago I was in law school in moot court in an oversized, itchy blue suit. It was a terrible experience. In a desperate attempt to avoid such a thing in the future, I signed up for a heading. I loved it. I signed up for someone else. Before I knew it, I had an LL in addition to my JD. M taxation.

While studying law, I did an internship in the legal department of the IRS. At IRS, I participated in the review and auditing of federal estate tax returns. In one such test, the opposing attorney read my report, looked at his file and said, « Gentlemen, it is spot on. « I almost passed out. From there it was just a short jump to practice, teach, write, and breathe taxes. Taxgirl® was born just like that.

Stimulus, United States Congress, Donald Trump