Since Republicans obtained control of the House of Representatives in the most recent November election, there is a much-reduced likelihood that the federal government will deposit a new round of stimulus checks into an individual’s bank account.
The possibility of obtaining additional stimulus checks is not eliminated by this, either. However, if someone did, it would presumably have only one distinct form.
Another Stimulus Check Not Feasible This Year
The most recent stimulus payment from the federal government was made possible by the American Rescue Plan Act (ARPA), a bill that was approved despite partisan differences in March 2021.
It garnered no Republican support and narrowly passed with solely Democratic votes. Republicans did not believe that additional stimulus was necessary as the law was being passed.
Now that the House of Representatives is in Republican hands, it will be impossible for lawmakers to enact partisan legislation. If they want to get legislation on the President’s desk, they will need at least some Republican lawmakers to support them.
Given that the Democrats could no longer act independently, it is highly improbable to award another direct payment like the $1,400 incentive payment.
The outcome of the election significantly decreased the likelihood of a fiscal stimulus check distribution, although it is still conceivable that some Americans might receive greater aid from the government.
This may resemble the format of an amended child tax credit. Republicans like Mitt Romney and other well-known figures have advocated boosting this essential type of parental support.
Bipartisan support exists for extending parental aid despite disagreement over the credit’s design because an expanded CTC was a key element of the ARPA and was funded.
Due to the leadership schism in Congress, cooperation across party lines will be necessary if anything is to be accomplished. Lawmakers may try to strike a compromise on this issue because a larger tax credit for parents is one of the few areas where there is a prospect for consensus.
More federal aid won’t likely be given, though, until politicians manage to come to an agreement. In such case, if you want to continue getting financial aid, your state must be one of the many that are providing COVID-19 relief aid to its inhabitants.
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Republicans, Democrats Still in Talks
Congress is known for haggling, and that’s not always a bad thing. Wheeling and dealing are how everyone obtains a portion of what they desire when it works. A year-end tax package is a topic under discussion right now.
The reintroduction of a larger Child Tax Credit and an improvement to the Earned Income Tax Credit are also part of that year-end tax package (EITC).
Republicans and some Democrats want the package’s rule requiring firms to amortize research and development (R&D) costs over five years changed. The year the money is spent on R&D, businesses often deduct these costs from their taxes.
Republicans want to slash business taxes by about $50 billion overall. The GOP wants to reinstate loan interest deductions, prolong the so-called bonus depreciation tax advantage, and return to businesses their yearly R&D deduction.
The expanded Child Tax Credit and EITC are being asked to be extended by Republicans, and a group of House Democrats is pleading with their party leaders to agree to this in exchange for negotiating corporate tax breaks.
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