Since the United States is facing a continuous rise in inflation, less job surplus, and a weakened supply chain, new research shows that the citizen’s maximum requirement of a stimulus check at the starting of the covid-19 pandemic perpetuates to struggle utmost.
Previous Three Stimulus Checks Critical for Lower Income Group
The previous three sessions of stimulus checks covering two presidencies were crucial for people with low income, as per the report Capital One Insights Center discovered but didn’t go far enough.
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Social Security Increase: More cash on the way for senior citizens
Millions of Americans will be getting more money soon in their pockets on Social Security. The retired personnel will be getting benefits with an increment of 5.9 percent in 2022. That is the highest adjustment in cost-of-living in the last 4 decades approximately.
The benefits have been increasingly taking into consideration the continuous inflation over the years. The citizens are bound to pay higher prices even for their daily necessities like gas, food and along with that the problems related to the supply chain also contribute towards the rise in the cost of goods.
Gregory Acs, Vice president of income and benefits policy at the Urban Institute said that “I’m not sure the current political environment would support sending $2,000 or $3,000 checks to every person every year, but I do think there’s political will behind providing more benefits for families raising kids, especially when we saw how hard it is when you have to be home with the kids and homeschooling when that was necessary.”
Why will the cost-of-living adjustment on Social Security go up in 2022?
As per an estimate made on Wednesday by the Social Security Administration, the cost-of-Living adjustment commonly called COLA has been increased for the average retirees with an amount of $92 per month. It’s a strange break from a long pause in inflation that evident cost-of-living adjustments averaging just 1.65 percent per annum over the past decade.
With the rise, the anticipated average Social Security payment for retired personnel will amount to $1657 per month from next year. Typically, a couple’s benefits would increase from $154 to $2753 per month.
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The Associate State Director of AARP West Virginia, Tom Hunter said that “Any help we can provide, particularly for those living on a fixed income, is so crucial key at this moment in time,”
Social Security affects nearly one out of five Americans across the nation, which totals up to 70 million people.
Child Tax Credit
During a Friday event promoting the family and child care elements of his Build Back Better Agenda, President Joe Biden quipped that he “liked kids better than people.”
Joe Biden said “When I talked to all your folks out on the playground, as I joked, everybody knows I like kids better than people,” added “Fortunately, they’re like me. Maybe that’s why I like them.”
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The next payments for the advance child tax credit are all set to go out later this week. From 15th September, the U.S. Treasury Department stated it has made more than 106 million payments throughout the three rounds of monthly payments till now, which totaled up to $46 billion.
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The payments for the advance child tax credit have been sent to the families of more than 60 million eligible children and the department claimed the response can already be seen: Food scarcity among families with children fell by 24% following the issuance of the payments of the first month in July, as reported by the U.S. Census Bureau.
The first half of the total advance child tax credit amount is decided to be paid every month on the 15th of every month, which began in July and will continue to be given till December. The second half of the payments can be claimed by the eligible families in 2022 after filing their tax returns for this year.
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The fourth installment of the payment has been already sent on 15th October, Friday. The next two installments will be due on 15th November and 15th December.
If some families are preferring to opt out of the advance monthly payments, then they can unenroll by the mentioned due date as per the IRS.
- Payment Date: 15th November/ Opt-Out Due Date: 1st November
- Payment Date: 15th December/ Opt-Out Due Date: 29th November
The Treasury Department has sent more than $450 billion straight to the families under the American Rescue Plan, claiming it’s helping citizens forbearing and coping up with their daily basic expenses like food, child daycare, and rent for their accommodation.
SSI and age-focused stimulus check
The Senior Citizens League has sent a letter to members of the U.S. House of Representatives and US Senate, requesting them to consider the age-focused stimulus.
“We’ve heard from thousands of them [seniors] who have exhausted their retirement savings, who have started eating just one meal a day, started cutting their pills in half because they can’t afford their prescription drugs, to list just a few of the drastic steps so many have had to take because of what inflation has done to them this year,” as written in the letter.
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“Many have written to us that ‘our government has forgotten about us.’”
Medicare Enrollment
The Social Security checks from next year will be having one of the highest cost-of-living adjustments over the past 10 years with the rise by more than 6 percent but the Senior Citizens League claims that it is not enough. That is because, in return for the higher Social Security payment, the burden of higher tax rates would also fall on some seniors which will result in the surcharge to their Medicare Part B premiums.
Calls for a Fourth Stimulus Check
For many citizens, arranging the money for pending mortgage, utility bills, and credit card bills is a monthly chain of anxiety. The research discovered that in April of this year, 46 percent of lower earners claimed they would not have been able to meet their expenses if the stimulus money had not been provided.
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Following the third round of stimulus checks, the payment of $1400 under the American Rescue Plan, that neutralizing act got difficult for many people with low income. In August 2021, nearly one-third of low-earning people reported that they were bound to borrow money from their families and friends to keep up with their bill payments.
The additional expense for child daycare made the struggle even more complex for many people with 50 percent of low earning people and 30 percent of people belonged to the middle-income group stating in August that they were left with two options only, one is to curb their working hours to look after children and another is giving up their jobs. This is in comparison with the 18 percent of the high-income group.
