New Stimulus Check Coming? At the height of the global Covid-19 pandemic, the United States government sought to help struggling Americans by issuing fiscal stimulus. Now many experts have voiced concerns that the relief efforts contributed to an increase in inflation of about 2.5 percentage points. The Fed has raised interest rates to help bring down that inflation and has been clear it will continue its efforts – regardless of how the market may react.
That was certainly clear on Friday, as the Dow lost some 700 points in trading. Experts now warn that the efforts to fight inflation could even cost up to 1.2 million jobs, and possibly send the nation into recession. If that happens, there is a chance that some Americans could then receive another stimulus check.
A cursory study of such events would suggest the country could find itself in an endless loop – funds to help those in need lead to recession, which is countered by raising interest rates and result in a recession. In such a case, the fed would likely lower the rates, issue the funds and the cycle plays out.
It would also serve to increase the national debt, and result in higher taxes to pay for all that “free money.” Of course, that is if the country actually heads into a serious recession, and common thinking is that this won’t be the case.
Stimulus Check 4.0?
The question now is whether Americans can expect a stimulus check if there isn’t actually a recession. For now, the Fed’s efforts are to curb inflation, yet gasoline and food prices remain far higher than a year ago, and while each has come down, the American worker is continuing to stretch their income to make ends meet. Inflation remains at 8.5 percent for the year.
Currently, the federal government has not indicated that any stimulus check would be sent out this fall. However, a number of states are still providing aid via tax refunds and other efforts.
Alaska will help residents via its 2022 Permanent Divided Fund, which is meant to address high energy prices in the state. Payments would be distributed on September 20 to Alaskans who filed electronically. For those who filed a paper application, the payment will arrive beginning the week of October 3.
Those in California can see aid in the form of direct payments ranging from $200 to $1,050. In addition, those who need it most could receive the aid. That is because residents who rely entirely on public assistance may not have been eligible for the first Golden Gate Stimulus. However, the Golden Gate Stimulus II expands the eligibility criteria so that even those with a $0 AGI can be eligible.
Colorado residents may be eligible to receive a check of $750 for single filers or $1,500 for joint filers thanks to a bill signed into law in May; while in June, Illinois announced it would begin a robust program to help its residents purchase the basic necessities. In addition, the state recently began issuing payments of $50 to individuals making less than $200,000. In neighboring Indiana, relief is being provided to residents in the form of its Automatic Taxpayer Refund. Those who were eligible for the earlier $125 ATR will receive a one-time payment of $200 as part of an additional ATR.
Rhode Island has begun to issue more targeted relief in the form of child tax rebates. Under the program, eligible taxpayers will receive a $250 tax credit per child with a maximum credit of $750.
And finally, Virginia is giving its residents a one-time tax rebate to cope with rising costs. As part of the law that was passed earlier this year, eligible taxpayers will be issued a rebate of up to $250 for single filers. Joint filers can qualify for a $500 rebate.
The question will still remain where exactly all this stimulus check money is actually coming from.
Expert Biography: A Senior Editor for 1945, Peter Suciu is a Michigan-based writer who has contributed to more than four dozen magazines, newspapers, and websites with over 3,000 published pieces over a twenty-year career in journalism. He regularly writes about military hardware, firearms history, cybersecurity, and international affairs and much more. Peter is also a Contributing Writer for Forbes. You can follow him on Twitter: @PeterSuciu.
