Since the United States is facing an increase in inflation, fewer jobs, and a weak supply chain, new research shows that the citizen’s need for a stimulus check at the start of this pandemic is making things worse.
Previous stimulus checks were important for the lower-income group.
The three previous sessions of stimulus checks were important for people with low incomes. This report says that they didn’t go far enough.
Social Security Increase: More money for older people
In 2022, millions of people will get more money. People who are retired will get 5.9% more benefits in 2022. This is the highest cost-of-living increase in the last four decades.
Over the years, prices have been steadily increasing. Citizens are paying more for gas, food, and other daily necessities. The problem is that the supply chain also contributes to high costs of goods.
Gregory Acs, who works for the Urban Institute, said that “I am not sure if the current political territory would support sending $2,000 or $3,000 checks to a lot of people every year. But I do think there is a lot of interest in helping families who have kids.”
The cost-of-living adjustment on Social Security will go up in 2022. This means that people will get more money.
As per an estimate on Wednesday, the cost-of-Living adjustment for retirees has been increased by $92. This is a break from the long pause of inflation that had just 1.65 percent average adjustments over the past decade.
The Social Security payments for retired people will go up next year. It will be $1657 per month on average, and it will go up for couples, too. They’ll get $2753 per month on average.
Tom Hunter is the Associate State Director of AARP West Virginia. He said, “Help is so important at this time, especially for people on fixed incomes.”
Social Security is important for many people. It is important that you have it. Social Security affects 20% of Americans, which is about 70 million people.
Child Tax Credit
President Joe Biden said that he likes kids better than other people. He said this during a Friday event, which was about how to build back better.
Joe Biden, the vice president of the United States, said, “When I talked to all your kids on the playground, as I joked, everybody knows that I like kids more than people.” He also said, “Fortunately, they’re like me. Maybe that’s why they like them.”
On September 15th, the U.S. Treasury Department will send money to people who applied for the child tax credit. They have already paid out $46 billion and 106 million payments since September 1st.
The Child Tax Credit Checks: will they be permanent?
More than 60 million children in the United States have received the payments for the advance child tax credit.
The first half of the total advance payment for the child tax credit is decided to be paid every month on the 15th. In July, it will start and continue until December. The second half of payments can be claimed by families in 2022 after filing their taxes from this year.
The fourth installment of your payment is already sent to the company. The next two installments are due on November 15th and December 15th.
If some families don’t want to pay the monthly payments, they can stop paying them. They need to do this by the date given by the IRS.
- Payment Date: 15th Nov / Opt-Out Due Date: November 1st
- Payment Date: 15th Dec / Opt-Out Due Date: November 29th
Treasury Department has send more than $450 billion to the families under the American Rescue Plan. They are giving money for food, daycare, and rent.
SSI and age-focused stimulus check
The Senior Citizens League sent a letter to the House of Representatives and Senate. They want them to think about how older people can be helped with stimuli.
“Many people in this group have had to take drastic steps. People who are old may not have enough money for food, medicine, or electricity. They may be cutting pills in half.”
Many people have written to us and said that our government has not been thinking about them.
Next year’s Social Security checks will be one of the highest cost-of-living adjustments over the last ten years. But it is not enough–the Senior Citizens League says that it is not enough. That is because if people get higher Social Security Checks, then there will also be higher tax rates for seniors. Those higher tax rates
Calls for a Fourth Stimulus Check
Many Citizens have a hard time paying their bills every month. They are worried about the money for their mortgage, utility bills, and credit card bills. The research says that this year, 46% of lower earners said they would not be able to make it if there wasn’t a stimulus check from the government.
Following the third round of stimulus checks, people with lower income got less money. In August 2021, nearly one-third of people with low income borrowed money from their family and friends so they could keep up with their bills.
The expense of daycare for children makes it hard for many people with low incomes. They might need to work fewer hours or quit their jobs. This is different from the people with high incomes who can afford to pay for daycare.