Covid-19 Stimulus Checks (prices, law, budget)

[Rick In Madison]

Originally Posted by MisterEd51

Maybe the people that get Social Security and were non-filers would move to the head of the line if they logged onto the new non-filers website and provided the direct deposit info there. Otherwise the IRS would have to get the direct deposit info from Social Security itself.

Okay, maybe I'm just slow.

If you are retired and collecting social security and not working then your sources of income are:

1. Social Security (not impacted by COVID-19)
2. Pension (not impacted by COVID-19)
3. 401K / Military or some other Governmental retirement (not impacted by COVID-19)

Why would somebody retired (e.g. not working) be entitled to a COVID-19 related stimulus check?
What am I missing?

[RocketDawg]

Originally Posted by Rick In Madison

Okay, maybe I'm just slow.

If you are retired and collecting social security and not working then your sources of income are:

1. Social Security (not impacted by COVID-19)
2. Pension (not impacted by COVID-19)
3. 401K / Military or some other Governmental retirement (not impacted by COVID-19)

Why would somebody retired (e.g. not working) be entitled to a COVID-19 related stimulus check?
What am I missing?

So they can spend it and stimulate the economy, or that's the rationale I've heard. I agree with you in principle though.

[Cloudy Dayz]

Originally Posted by Rick In Madison

Okay, maybe I'm just slow.

If you are retired and collecting social security and not working then your sources of income are:

1. Social Security (not impacted by COVID-19)
2. Pension (not impacted by COVID-19)
3. 401K / Military or some other Governmental retirement (not impacted by COVID-19)

Why would somebody retired (e.g. not working) be entitled to a COVID-19 related stimulus check?
What am I missing?

You are missing the definition of the word, "stimulus". Let me help you.

something that causes growth or activity:

Foreign investment has been a stimulus to the industry.
The book will provide a stimulus to research in this very important area.

STIMULUS _ definition in the Cambridge English Dictionary

Now let's look at the synonyms for the word.

catalyst
encouragement
fillip
impetus
incentive
motivation
stimulant
stimulation
bang
boost
cause
charge
fireworks
flash
goad
impulse
incitation
incitement
inducement
instigation
invitation
kick
motive
propellant
push
spur
sting
turn-on
urging
eye-opener
piquing
shot in the arm

Stimulus Synonyms, Stimulus Antonyms _ Thesaurus.com

Note that the word "entitled" is no where on that list. In short, the check is a stimulus, not an entitlement. I hope this helps you understanding of it.

[GreggT]

Originally Posted by Rick In Madison

Okay, maybe I'm just slow.

If you are retired and collecting social security and not working then your sources of income are:

1. Social Security (not impacted by COVID-19)
2. Pension (not impacted by COVID-19)
3. 401K / Military or some other Governmental retirement (not impacted by COVID-19)

Why would somebody retired (e.g. not working) be entitled to a COVID-19 related stimulus check?
What am I missing?

For the same reason someone laid off who is drawing more through unemployment than their regular pay. The same reason that government workers, teachers whose pay has continued, and those to be determined essential workers are getting a check.

[MisterEd51]

Originally Posted by GreggT

For the same reason someone laid off who is drawing more through unemployment than their regular pay. The same reason that government workers, teachers whose pay has continued, and those to be determined essential workers are getting a check.

Someone I know would love to go on unemployment right now. He makes about $300 per week from his job. If he were to go on unemployment his weekly amount would be:

Estimated amount=1200*3/26=$138
Additional amount Cares Act=$600
Total unemployment=$738

He would collect about $13,000 from unemployment for the first four months. From working he would make about $5000.

If you are eligible to receive unemployment, your weekly benefit rate (WBR) will be 1/26 of your average quarterly earnings in your two highest paid quarters of the base period. The minimum amount you will receive is $45; the maximum amount you will receive is $275. You may receive benefits for a maximum of 26 weeks.

In a historic expansion of unemployment insurance, the federal government would give jobless workers an extra $600 a week on top of their state benefits for four months as part of the $2 trillion stimulus bill the Senate passed unanimously late Wednesday night.

Stimulus bill offers $600 a week to the unemployed for 4 months
https://www.cnn.com/2020/03/25/polit...rus/index.html

[Preston3124]

Originally Posted by Rick In Madison

Okay, maybe I'm just slow.

If you are retired and collecting social security and not working then your sources of income are:

1. Social Security (not impacted by COVID-19)
2. Pension (not impacted by COVID-19)
3. 401K / Military or some other Governmental retirement (not impacted by COVID-19)

Why would somebody retired (e.g. not working) be entitled to a COVID-19 related stimulus check?
What am I missing?

I am not retired but my 401K sure as heck was impacted by COVID-19.

[RocketDawg]

Originally Posted by MisterEd51

Someone I know would love to go on unemployment right now. He makes about $300 per week from his job. If he were to go on unemployment his weekly amount would be:

Estimated amount=1200*3/26=$138
Additional amount Cares Act=$600
Total unemployment=$738

He would collect about $13,000 from unemployment for the first four months. From working he would make about $5000.


Stimulus bill offers $600 a week to the unemployed for 4 months
https://www.cnn.com/2020/03/25/polit...rus/index.html

I don't think the stimulus bill was intended to work like that. It's a loophole that needs to be closing. Like welfare, it's better to stay at home and do nothing than it is to have a job.

[Rick In Madison]

I appreciate most of the conversation and the points being made.

The flaw in the system as I see it, revolves around the impact to employment or income. If you or your family were impacted by the COVID-19 lockdown then I think eligibility would be warranted. As GreggT first illustrates and effectively what MisterEd51 alludes to with someone he knows.

It’s those on the other side of the equation who I believe are receiving an ENTITLEMENT in the guise of a STIMULUS. GreggT’s follow on statement illustrates my point. Those who are still employed (government workers, teachers, and other essential workers) are still earning their pay just as they were prior to the pandemic. The addition of the stimulus check (assuming their earnings qualifies them to receive it) becomes a supplement to their current income; an entitlement.

As some have pointed out, it is a stimulus. If that were the case across the board then there wouldn’t be an income qualifier to receive it. I, whose family income has been impacted, would receive a check. Neighbors of mine who have two small business clothing stores, would receive a check. My dentist whose practice has been impacted and likewise his income would too receive a check.

I am grateful for the income limiters that are in place. Without them, the stimulus for many and the entitlement for some, would just prolong any economic recovery our country may have in the future.

For those who are receiving what is amounting to an entitlement, I hope they consider helping those who are receiving it as a stimulus and donate their windfall to local charities. For those of us in north Alabama, one such entity is Food Bank of North Alabama (https://www.foodbanknorthal.org) of which I am not affiliated other than as a grateful supporter.

Three cheers to re-opening a masked economy!

[RocketDawg]

Originally Posted by Rick In Madison

I appreciate most of the conversation and the points being made.

The flaw in the system as I see it, revolves around the impact to employment or income. If you or your family were impacted by the COVID-19 lockdown then I think eligibility would be warranted. As GreggT first illustrates and effectively what MisterEd51 alludes to with someone he knows.

It’s those on the other side of the equation who I believe are receiving an ENTITLEMENT in the guise of a STIMULUS. GreggT’s follow on statement illustrates my point. Those who are still employed (government workers, teachers, and other essential workers) are still earning their pay just as they were prior to the pandemic. The addition of the stimulus check (assuming their earnings qualifies them to receive it) becomes a supplement to their current income; an entitlement.

As some have pointed out, it is a stimulus. If that were the case across the board then there wouldn’t be an income qualifier to receive it. I, whose family income has been impacted, would receive a check. Neighbors of mine who have two small business clothing stores, would receive a check. My dentist whose practice has been impacted and likewise his income would too receive a check.

I am grateful for the income limiters that are in place. Without them, the stimulus for many and the entitlement for some, would just prolong any economic recovery our country may have in the future.

For those who are receiving what is amounting to an entitlement, I hope they consider helping those who are receiving it as a stimulus and donate their windfall to local charities. For those of us in north Alabama, one such entity is Food Bank of North Alabama (https://www.foodbanknorthal.org) of which I am not affiliated other than as a grateful supporter.

Three cheers to re-opening a masked economy!

I agree. We're still going to be wearing masks for a while though. In fact, I would't object to masks being a requirement at least until we see if reopening is going to cause a major "second wave".

There are actually two flaws in the system: 1) The ones you pointed out who are continuing to be paid, be it from working at home or retirees, yet receive a stimulus check of some amount; and 2) The flaw of being paid more on stimulus/unemployment benefits that if working (that makes it beneficial to NOT work, which is not good).

[RocketDawg]

Originally Posted by Preston3124

I am not retired but my 401K sure as heck was impacted by COVID-19.

Have you checked your 401K? I did, and mine didn't drop anywhere near the 30% or whatever it was from the peak. It was more like 13-14%. Of course, it hasn't gained back the losses as fast as the Dow either.

It all depends on how the 401K is invested, of course.