Hey everyone, sorry I haven’t been updating for these last two weeks I went back to school and took some time to get my schedule together. With my returning to school, I have begun to see a bit of normalcy returning to my everyday life and hopefully, many people around the US and the world have started to sense this as well. Although we are seeing some return to normalcy, the coronavirus has still had irreparable effects on employees, companies, small businesses, etc. In order to tackle these issues, President Biden and the Democrats are seeking to aid Americans.
What does this aid look like? Well, it comes in the form of the American Rescue Plan. This $1.9 trillion coronavirus relief package will result in states and localities across the country will being better armed to provide relief and assistance to those vulnerable households who have been severely affected by the global pandemic. This program won’t create money, but it will allow for equal distribution of money in a quick, efficient, and fair way from existing institutions.
Because this plan is multifaceted, I want to discuss the ones that I think are the most beneficial.
First, how this is plan tackling unemployment compensation. The American Rescue Plan waives federal income taxes on the first $10,200 of unemployment benefits received in 2020 by middle- and lower-income taxpayers. “This law will provide tax relief for Americans who lost their jobs and utilized unemployment benefits last year – allowing millions of workers to focus their benefits on covering essentials during the COVID-19 pandemic” (U.S. Department of the Treasury).
Other aspects of this bill include financial assistance for independent restaurants and bars. Although many of us have been supporting our favorite local restaurants, this plan will help them even more. This bill will also assist in rent and mortgage payments.
Personally, one of the most interesting parts of this relief bill is what it can do for college students and alumni. Congresswoman Alexandria Ocasio-Cortez also spoke about this. While there’s no student loan cancellation, she explained that there is a provision that she called an “Easter egg.” College students are going to receive stimulus payments they did not receive in 2020, but there is also an additional tax provision that dictates that “if” student loans get cancelled in the future, you don’t have to pay taxes on the cancellation. While nothing is set in stone, this is a positive step on the direction of relieving college debt.
Although there is a lot to be done in the realm of relief for Americans who have been hit hard by the coronavirus this care package demonstrates extreme assistance from the federal government, something we can hope to see more of in the future.