Stimulus checks were delivered faster to wealthy white households than Black and Hispanic families, study says
A study published Thursday by the Urban Institute showed that wealthy and white households received economic-relief payments faster than Black and Hispanic families, as well as individuals below the poverty line. Nearly three-quarters of non-Hispanic white adults said they got their payment, according to the study. The proportions dropped to 69% for non-Hispanic Black adults and 64% for Hispanic adults. The report arrives as lawmakers argue over the need for additional stimulus checks and who they should be sent to. Visit Business Insider's homepage for more stories.
Roughly three months after the Internal Revenue Service began sending economic relief payments, data shows wealthier white households got their economic stimulus checks faster than Black and Hispanic families, as well as those below the poverty line. About 70% of adults said they received their checks by mid-to-late May, according to a study released by the Urban Institute on Thursday. Yet "significant disparities" in payment delivery by income, race and ethnicity, and family citizenship status marred the program's effectiveness. The gaps are even direr after considering the virus's disproportionate economic toll in lower-income communities and communities of color. Roughly 59% of families with incomes at or below the poverty level said they received payments, while 78% of adults with incomes above the threshold reported getting their checks. Read more: The ultimate guide to getting started in real-estate investing — according to entrepreneurs who built multimillion-dollar empires from scratch Nearly three-quarters of non-Hispanic white adults said they received their payment, according to the study. Yet the share dropped to 69% for non-Hispanic Black adults and 64% for Hispanic adults. Just 54% of Hispanic adults in families with noncitizens reported getting their check. One reason for the disparity could come from lower-income households missing out on checks by not having filed tax returns in 2018 or 2019, the study said. Such individuals should be eligible for receiving the $1,200 payment after filing for a 2020 return. Other lags could be tied to those who reported income data without a tax return. The IRS pulled data from past filings in order to send advance payments before the next tax season. With $30 billion in stimulus checks still waiting to be sent out, it's possible the IRS prioritized tax filers before sending checks to self-reporters. Read more: A Wall Street expert sees a retail-investing trend that preceded the dot-com bubble and financial crisis bubbling up again — and warns it will end 'abruptly and painfully' for the stock market The Urban Institute's study arrives as legislators spar over the need for additional fiscal stimulus. Democrats have pushed for an extension to expanded unemployment insurance as well as another round of $1,200 payments. Republicans have pushed sending additional payments to only those making less than $40,000 a year, a plan that could omit roughly 20 million Americans. The White House is mixed on how to send another round of checks. President Donald Trump has indicated he is open to such policy, but Larry Kudlow, director of the National Economic Council, said in June that new checks should only go to "people who lost their jobs and are most in need." Read more: Paul Andreola has a long track record of finding tiny stocks that deliver 10-times returns. He lays out the 4 criteria he looks for when seeking the next explosive pick.Join the conversation about this story » NOW WATCH: Swayze Valentine is the only female treating fighters' cuts and bruises inside the UFC octagon
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If you have yet to receive your coronavirus stimulus check, there may still be time. The...If you have yet to receive your coronavirus stimulus check, there may still be time. The IRS has extended the deadline to apply for one until Nov. 21 for “non-filers”—typically low-income earners or those with prolonged unemployment below the income threshold required to file a tax return. According to the IRS,…Read more...
A congressional watchdog issued a report that said the federal government sent 1.1 million stimulus checks...A congressional watchdog issued a report that said the federal government sent 1.1 million stimulus checks to dead people, totaling $1.4 billion. The report from the Government Accountability Office said that in the scramble to issue direct payments, administrative problems led to cash being sent to the deceased. Around $269 billion in stimulus payments had been sent as of May 31, and the payments to dead people made up a sliver of the entire government payout. Treasury officials had ordered delivery of the stimulus payments "as fast as possible," the report said. Visit Business Insider's homepage for more stories. A congressional watchdog reported on Wednesday that the federal government sent 1.1 million stimulus payments to dead people, totaling $1.4 billion. The report from the Government Accountability Office said that in the scramble to send direct payments to Americans after the CARES Act passed in March, a significant portion of the money went to the deceased. The problem partly arose from administrative issues, the watchdog said. While the IRS has access to death records from the Social Security Administration, the Treasury Department — which distributed the economic impact payments to people — does not. The Treasury Department took similar procedural steps from the last round of stimulus payments in 2008, which didn't filter out payments for dead people. Treasury officials had ordered delivery of the stimulus payments "as fast as possible," the report said. Once it learned stimulus checks were going to the dead, Treasury secured temporary access to the death data from the SSA. The GAO urged Congress to "provide Treasury with access to the Social Security Administration's full set of death records, and require that Treasury consistently use it, to help reduce similar types of improper payments." Read more: A CEO overseeing $147 million outlines his 4-part strategy for identifying which stocks to buy — and shares 2 he sees primed to explode higher right now The IRS had previously said on May 6 that money found to be going to dead people had to be returned. But the report says the agency doesn't intend to take steps to get the funds back anytime soon. The GAO also said that up to May 31, the Treasury Department and the IRS sent 160 million payments amounting to $269 billion, making payments to dead people a sliver of the entire payout. The report comes as the Trump administration weighs whether to push for another round of direct payments for Americans as part of another economic relief package. President Donald Trump backs the idea, but other top White House economic officials are split. Treasury Secretary Steven Mnuchin opened the door for another round of payments earlier this month. Meanwhile, Larry Kudlow, the head of the National Economic Council, said the administration may seek to send aid to "people who lost their jobs or are most in need." Under the CARES Act, individuals earning below $75,000 received the full $1,200 check, and the amount scaled down until the eligibility cutoff at $99,000. People also qualified for an extra $500 for each dependent child under 17.Join the conversation about this story » NOW WATCH: How waste is dealt with on the world's largest cruise ship
Americans are only getting one stimulus check for now, but Democratic lawmakers are floating plans for more
If you've been financially impacted by the coronavirus pandemic, you may be wondering how many stimulus...If you've been financially impacted by the coronavirus pandemic, you may be wondering how many stimulus checks you'll be getting. As of part of a massive emergency relief package signed into law at the end of March, the Treasury Department is making over 150 million onetime cash payments to Americans. As the financial fallout continues, however, some Democratic lawmakers are proposing ideas for recurring stimulus checks, which sound more like universal basic income. Read more personal finance coverage. More than a month after the United States began shutting down businesses and canceling public events to curb the spread of the coronavirus, many Americans are finding themselves in the thick of the financial fallout. The Coronavirus Aid, Relief, and Economic Security Act, or CARES Act, granted Americans earning less than $99,000 annually a onetime payment, or "recovery rebate," of up to $1,200, plus an additional $500 for each child age 16 or younger. Married couples who file taxes jointly and earn less than $198,000 can receive up to $2,400. The cash is not taxable, unlike unemployment benefits. About 90 million people have received stimulus checks from the Treasury Department so far, mostly by direct deposit. Over the next several weeks and months, another 60 million payments will be delivered to federal benefits recipients and others who haven't provided their direct-deposit information to the IRS. For now, it's just a onetime payment. But some Democratic lawmakers have floated plans for recurring stimulus checks to help Americans ride out the next several months of economic hardship. How many stimulus checks will there be? There may be another stimulus check in future relief bills, but the House of Representatives and the Senate will need to agree, and the president will need to sign it into law, before any additional money can be sent to people. Sen. Majority Leader Mitch McConnell said negotiations won't start until early May. "Given the extent of layoffs and the absence of paid leave, another round of checks to households will likely be warranted," Jared Bernstein, a senior fellow at the Center on Budget and Policy Priorities and formerly a top economist for presumptive Democratic nominee Joe Biden, told Business Insider's Joseph Zeballos-Roig. In an MSNBC interview on Monday, House Speaker Nancy Pelosi said the federal government would be considering ways to "put money in people's pockets," specifically those affected by small business closures, Zeballos-Roig reported. "Let's see what works, what is operational, and what needs other attention," Pelosi said. "Others have suggested a minimum income, a guaranteed income for people. Is that worthy of attention now? Perhaps so." Pelosi also said in a letter to representatives earlier this month that House Democrats would seek to include "additional direct payments" for families in another bill. The CARES Act notably left out payments for adult dependents, including college students and senior citizens. Since payments starting hitting bank accounts, several Democratic lawmakers have put forth ambitious proposals for the next relief package that would pay most Americans $2,000 a month until unemployment levels fall to pre-pandemic levels. And before dropping out of the presidential race in early April, Sen. Bernie Sanders unveiled his own plan to send $2,000 monthly payments to people. These plans resemble universal basic income, or a guaranteed minimum payment made to Americans to ensure they have enough money to meet their basic needs. Stimulus checks — or "economic impact payments," as the IRS calls them — are intended to provide temporary relief in times of financial duress. Read more on managing your money in this tumultuous time: 3 options for people struggling to pay their mortgage during the global health crisis 4 reasons to get disability insurance, even if you don't think you need it If you've been financially impacted by the coronavirus, you may be able to pause payments on these 8 bills How to get a stimulus check from the US government, which could pay up to $1,200 if you qualify In response to the coronavirus, credit card issuers like Amex and Capital One are letting customers skip payments without interest and more Join the conversation about this story » NOW WATCH: What makes 'Parasite' so shocking is the twist that happens in a 10-minute sequence