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Stimulus Check Update and Stimulus Package Update August 28, 2020

Stimulus Check Update

Stimulus Check Update and Stimulus Package Update August 28, 2020

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Quick Overview

  • Nancy Pelosi and the White House Negotiating Team had a 25 minute meeting yesterday to advance the stimulus package negotiations. They did make progress, but not enough.
  • Yesterday was the last day of the Republican National Convention. President Trump officially accepted the GOP nomination and gave a 70 minute speech. For the first 30 minutes, he was reading off a teleprompter and it was pretty flat. Then he got in the groove and started lashing out at the Democrats.
  • Covid-19 cases are on the rise in the United States and fatalities did not decrease this week as expected.

Update on the Second Stimulus Check and the Next Stimulus Package

The White House Negotiating Team and Nancy Pelosi, Leader of the Democrats in the House of Representatives, held a 25 minute meeting yesterday to make progress on the stimulus package. Originally, the Democrats wanted a stimulus package for 3.4 trillion dollars. The Republicans said that was too expensive. The Republicans said let’s do 1 trillion. The Democrats compromised and went down to 2.4 trillion dollars.

Yesterday, the Democrats came down another 200 billion to 2.2 trillion dollars. To put that into perspective, the last stimulus package cost 2.2 trillion dollars.

The Republicans are not budging and remain at 1 trillion dollars. The Republicans said that they are willing to go higher, but they are not willing to meet the Democrats in the middle between 1 trillion and 2.2 trillion.

The Republicans want to break up the next stimulus package into multiple packages. The Republicans want to pass a smaller bill immediately for $500 billion. The details of this smaller bill are expected to be released next week.

While all this is happening with the Senate, President Trump has issued 4 executive orders and is looking to issue additional executive orders.

Chief of Staff, Mark Meadows, said

“we’re looking at other executive actions, we’re going to take a few others. If this Congress is not going to work, President Trump is going to get to work and solve some problems.

The Senate gets back into session on September 8th and the political climate and pressure on the Senators is expected to intensify with the economic reports from August. It’s very sad to say this, but bad economic data will trigger more pressure on the politicians to pass a larger stimulus package and faster.

August Economic Reports

The August economic reports will be released next week. The benefits from the last stimulus package expired or wore off by July. Therefore, August is the first month where the economic data will not be significantly boosted by stimulus.

For that reason, August data is so important. If you would like to help us out, we are running a poll where you can cast your vote anonymously. We are asking you how you would describe your current financial situation as of today.

In addition to casting your vote, you can check out the results of the poll in real-time too.

Payroll Tax Cut

Let’s review President Trump’s executive order on the payroll tax cut. We’re getting a lot of comments and questions on when this is going to kick in.

The reason why you’re not seeing a bigger paycheck from this executive order is because this executive order is not being enforced by businesses. The reason why businesses are not enforcing the executive order is because this order is not a reduction of payroll taxes, it’s only postpones when you have to pay it. Therefore, your employer could choose to stop taking out of your paycheck social security taxes and medicare taxes, but then you would end up owing that money back in the future.

Businesses are saying that they don’t want to give their employees a surprise tax bill in the future, therefore, this executive order is not being implemented.

The reason why President Trump ordered a deferral of payroll taxes rather than an elimination of payroll taxes is because only Congress has the authorization to reduce the payroll tax.

Long story short, this executive order is a dud. President Trump’s executive order for more unemployment money did actually go into effect. That money is already being paid out to residents in three states. That executive order was a success.

But this executive order was a flop. Therefore, do not expect a payroll tax cut from this executive order.

Republican National Convention

Last night was the final night of the Republican National Convention. President Trump officially accepted the GOP Nomination. President Trump delivered a 70 minute speech with memorable quotes.

Please comment below your thoughts whether you agree or disagree with President Trump’s quotes… and here they are:

President Trump said

“Joe Biden is a Trojan Horse for a radical, left-wing agenda”

President Trump said

“Joe Biden is not the savior of America’s soul. Joe Biden is the destroyer of American greatness”

President Trump said that it’s your choice to vote for

“The American Dream” or “A Socialist Agenda”

And President Trump also said

“I have done more for the African American community than any President since Abraham Lincoln and when I’m re-elected, the best is yet to come”

Please comment below, I look forward to reading your response.

Covid-19 News

  • Covid-19 cases are back on the rise in Italy and Germany.
  • Argentina is recording twice as many cases and deaths compared to a few weeks ago.
  • In Japan, the government is asking restaurants and bars to shorten their hours and close early. The government will pay the businesses that comply.
  • The United States is reporting 45,966 cases and 1,116 fatalities on Thursday, this is according to the John Hopkins University.

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