Why Does Income Play a Part in Stimulus Check?

AT THESWOOSH wrote:

Why are those that make above $150k married being penalized by the stimulus? The situation is impacting all of us. What is the reasoning behind this decision? I could help impact the economy. Not understanding why my income is relevant to an emergency crisis.

Because the money funding the stimulus ultimately comes from US taxpayers. Most married couples who make $199K AGI (where the bucks stop) don't really need another couple grand.

We'll be donating ours to the local food bank.

AT THESWOOSH wrote:

Why are those that make above $150k married being penalized by the stimulus? The situation is impacting all of us. What is the reasoning behind this decision? I could help impact the economy. Not understanding why my income is relevant to an emergency crisis.

because if your household makes over 150k thousand a year you should be in a better situation to handle temporary setbacks like this and many times more likely to have easy access to cash via like home equity loans, an extra car to sell, stocks and retirement savings.

If you can't survive on more than 150k the chance that another a ~1% added to your income is going to make a difference is unlikely. It's going to last you about ~3 days.

If you are making minimum wage this could be almost a month of take home pay. people making minimum are used to making $1200 stretch out for much much longer than you are.

so we could either give the money to you, who either don't need it or if you do need it it will only fund you for 3-4 days, or we can give it to people who have a much higher chance of needing it for essential needs and more likely to be able to meet their essential needs for much longer than you on the same amount.

The post betrays the writers privilege and ignorance.

3lau333 wrote:

dead is bad wrote:

Net worth? My parents have a net worth of $5m but income of only about $75k so they qualify. My young family of 7 has a net worth very small but we do not qualify for the stimulus. It is not based on net worth.

how do they have that little investment income with $5M net worth?

Also if in the money is in tax protected accounts like 401ks or IRAs. They aren’t taxed until the money is withdrawn

If in taxable accounts, the bulk of it might be in money market or similar accounts and he current yield on that is not much higher than 1% per year

AT THESWOOSH wrote:

Why are those that make above $150k married being penalized by the stimulus? The situation is impacting all of us. What is the reasoning behind this decision? I could help impact the economy. Not understanding why my income is relevant to an emergency crisis.

The biggest predictor if what economic class you end up in is the one you are born into. I’m sure that’s not the case for you - you are undoubtedly self made from the projects who also married the super model en route to running sub 4.

That said, odds say you’ve been gifted tremendously. The question you should be asking is how can you do more to help not why aren’t more blessings being poured upon you. (That’s admittedly a poor man’s version of JFK’s quote).

Oh, stop.

dead is bad wrote:

It would have been much easier for the Government to just send a check to everyone. They would have cut down on a whole bunch of hours spent trying to figure this out. And then it will take another year to reconcile those who h as d changes in income from 2018 to 2019.

I am well aware with that type of University of Chicago/University of Minnesota economic philosophy. Those who believe what you stated believe it was a waste of money and time with F.D.R. Great Depression Work Programs. According to that thought process, U.S. should have given out of work (mostly) men checks instead of providing the (mostly) men jobs.

W. Bush/Obama did just that, 2008-2010 $950 billion bailout. What a waste. Healthy and fit young men and women were given extended unemployment. No federal jobs program.

During Depression era, a lot of good was done. A lot of roads and bridges were built, some dams also. A lot of trees were planted.

As I stated in my initial post, give those who earn under $50,000/year money. That is the dividing line. The greater the income, the less likely will the money be used for stimulus/consumption.

Another poster said those with $3000 mortgages should be made whole. Those who have a $3000 mortgage, can take money from their 401-K/403-B to survive.

dead is bad wrote:

You are close. They worked low paying jobs and farmed and never spent a penny. Much of the land that they acquired through the years at $100 per acre or $250 per acre is now worth $10,000.

Ground worth 10k/acre is renting for $280/acre. The hypothetical 500 acres they have cash rents for $140k. If they are farming it themselves, they r making even more than that.

2/3 is wooded. They farm the rest.

AT THESWOOSH wrote:

I could help impact the economy.

How can you help impact the economy if your income has not been hurt and most things are closed?

You can't go out to a restaurant.

You can't go to the beach.

You can't go to the mall.

Where are you going to spend this money?

X-Runner wrote:

AT THESWOOSH wrote:

I could help impact the economy.

How can you help impact the economy if your income has not been hurt and most things are closed?

You can't go out to a restaurant.

You can't go to the beach.

You can't go to the mall.

Where are you going to spend this money?

on line. take out

X-Runner wrote:

AT THESWOOSH wrote:

I could help impact the economy.

How can you help impact the economy if your income has not been hurt and most things are closed?

You can't go out to a restaurant.

You can't go to the beach.

You can't go to the mall.

Where are you going to spend this money?

Food

ReallybroReally wrote:

on line. take out

Online sales and take out orders are not hurting right now.

They are doing very well.

This doesn't help restaurant servers and people working in retail sales.

They are the ones that need direct cash injections to eat and pay for housing.

food wrote:

Food

Have you seen the shelves at the grocery stores?

There is not a slacked demand for food.

Someone that makes above $150k per year is likely doing fine with their money. This check is going to go straight to their bank account and not be spent, doing nothing for the economy.

Poor people will immediately spend it, because they spend everything they have as soon as they get it anyway. So that's why it's going to them, so that it will immediately be spent and help the economy.

Similar thing to how saving money in general does not help the economy. If every citizen decided to start saving up for a new house and pinching pennies, the economy would go to crap. The best situation is if everyone spends their money like a drunk sailor on shore, but you are the only one that saves. Interest rates would go way up and you could make a lot of money. No spending makes interest rates go down, because they want to encourage borrowing which means more money is being spent.

X-Runner wrote:

food wrote:

Food

Have you seen the shelves at the grocery stores?

There is not a slacked demand for food.

You have no clue, troll.

I have seen wrote:

You have no clue, troll.

Please explain to all of us how someone who is currently still fully employed and making a very nice income would somehow use this stimulus money to buy even more food then they are currently buying.

And then explain how that stimulates anything that leads to anyone to hire someone who has lost work over this.

AT THESWOOSH wrote:

Why are those that make above $150k married being penalized by the stimulus? The situation is impacting all of us. What is the reasoning behind this decision? I could help impact the economy. Not understanding why my income is relevant to an emergency crisis.

How do you make over $150k and not understand basic economics?

X-Runner wrote:

ReallybroReally wrote:

on line. take out

Online sales and take out orders are not hurting right now.

They are doing very well.

This doesn't help restaurant servers and people working in retail sales.

They are the ones that need direct cash injections to eat and pay for housing.

I personally went to a small restaurant I eat at 2 times or so a month and dropped $100 on the counter and left. That is more than the total bill for the 2 times per month.