ANSWERING QUESTIONS ABOUT THE CORONAVIRUS BILL
By Lisa Desjardins, @LisaDNews
Correspondent
As we’ve reported, lawmakers in Washington put together and passed the largest one-time recovery bill in U.S. history in the space of just two weeks.
(Read our breakdown here.)
The largest pieces of the CARES Act are clear:
- $377 billion for small businesses
- $500 billion for larger companies
- $1,200 checks for most individuals and
- an increase of $600 per week for those receiving unemployment benefits
- $150 billion for states and cities
- And $130 billion for the health care system, including hospitals
But the pace involved in passing this bill has left nearly as many questions unanswered as there are provisions. The answers will affect who can get what aid, and how fast. We thought this would be a good time to tackle a few common (and some less common) questions.
Who exactly can get the $1,200 “recovery rebate” money?
According to Senate and House sources, this money was designed to go to as wide a group of Americans as possible. The $1,200 per individual includes anyone with a tax identification number with the IRS. That means not just anyone who has recently paid taxes, but anyone who uses that ID number for other benefits, such as Social Security.
How fast will that money arrive?
We are told that for those who have used electronic transfers or direct deposit with the IRS in the past, the money should arrive in those accounts within two to three weeks. Others will receive paper checks in the mail, which could take longer.
What about people who owe the IRS back taxes? Or are behind in child support?
Great questions. Staff from the Senate Finance Committee, which helped with these portions of the bill, told the NewsHour these two situations will be treated differently. Overall, lawmakers aimed to use existing tax law so that money would flow as quickly as possible. Thus, the bill would allow the $1,200 payments to go to Americans who owe back taxes. But, following current tax law, those who owe child support would automatically see any tax refund — including this money — go to the person to whom that child support is owed.
One other note. This money is NOT taxable income. It cannot change your tax bill next year, meaning it would not put you in a higher tax bracket on its own.
Why do the $500 payments for children end at age 17?
Senate sources tell the NewsHour that again, the bill writers wanted to use current legal provisions to allow money to move quickly. And currently tax credits — which the $500 per child is considered to be — are given only for children under the age of 17. There is a separate tax *deduction* for children who remain dependents, especially if they are students, until age 24. But this money is a direct credit, not a deduction. (Deductions being less powerful, generally.)
Which small businesses can get help?
This is an essential question. Small businesses can get up to 250% of their monthly payroll as a loan. If they use that money for employee pay and leases, it will become a grant, which means they need not repay it.
Who qualifies? The primary requirement is that the business have fewer than 500 workers.
But note: Unlike other parts of this bill, there is no specific requirement that the business be hurt directly or indirectly by the novel coronavirus pandemic. It is meant for an incredibly wide group of small businesses.
FIVE OVERLOOKED POLITICAL STORIES FROM THE PAST WEEK
By Alex D’Elia, @AlexDEliaNews
Politics production assistant
Lack of poll workers across Wisconsin, flood of absentee ballots spark fears votes will go uncounted -- March 31. Wisconsin municipalities are short almost 7,000 poll workers as the state primary approaches, and have dramatically reduced the number of polling places. Meanwhile, nearly 1 million voters have asked for absentee ballots— a number that surpasses the total number of early ballots cast in the 2016 presidential election. Why it matters: Fear of the virus could affect voter turnout in Wisconsin and the limited number of in-person voting places and lack of polling place volunteers could lead to longer lines and crowds at a time when people should be social distancing. Furthermore, many last-minute absentee ballots might go uncounted if they don’t get them back to clerks by election day. -- Milwaukee Journal Sentinel
Cuomo postpones New York’s primary election to June 23 because of coronavirus -- March 28. New York’s presidential primary now will be held on the same day as primaries for congressional and state legislative races. Why it matters: By postponing the primary to June 23, the state may be penalized by having to forfeit delegates at the Democratic National Convention, since the DNC’s current deadline for presidential primary voting is June 9. -- The New York Times
As coronavirus looms, U.S. proceeding with major reduction of aid to Yemen -- March 26. The move is reportedly meant to prompt Houthi rebels to lift controls that have imapired aid delivery. Why it matters: Aid officials argue that reducing assistance to Yemen amid a global pandemic could exacerbate what is already the world’s worst humanitarian crisis. -- The Washington Post
Facebook, Twitter bar video of Brazilian president endorsing unproven antiviral drug -- March 30. President Jair Bolsonaro falsely touted a drug as helping fight the novel coronavirus. Why it matters: The drug in question can cause serious health consequences, even death, the CDC warned. The decision to remove a post by a head of state comes as the social media giants aggressively try to combat misinformation about the pandemic. -- NBC News
US tells Maduro, Guaidó to 'step aside' in Venezuela -- March 31. U.S. Secretary of State Mike Pompeo called for both the Venezuelan president and the U.S.-backed opposition leader to step down and make way for a transitional government and new elections. Why it matters: The proposed “pathway to democracy” is a departure from the Trump administration’s consistent backing of Guaidó as interim president. If the conditions are met, the U.S. will lift all sanctions against the country, whose already crippled economy and health care system will struggle to respond to the coronavirus outbreak. -- The Hill
#POLITICSTRIVIA
By Kate Grumke, @KGrumke
Politics producer
On this day in 1933, the government launched a creative remedy for depression-era unemployment. A corps of young men was established to complete conservation projects across the country. It was a signature New Deal program, and in its nine years, it employed about 3 million men.
Our question: What was this program called? Here’s a hint — its initials are CCC.
Send your answers to [email protected] or tweet using #PoliticsTrivia. The first correct answers will earn a shout-out next week.
Last week, we asked: On this day in 1934, President Franklin Delano Roosevelt signed an act that paved the way for a U.S. colony to become an independent country. What country was that?
The answer is the Philippines.
Congratulations to our winners: Dean Gottehrer and Brad Smith!!
Thank you all for reading and watching. We’ll drop into your Inbox next week.
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