The HEALS Act introduced by Senate Republicans this week includes several key changes from the CARES Act that might expand eligibility to an estimated 26 million people, according to an estimate from a think tank.
The Tax Foundation, a nonpartisan Washington-based think tank, said that “one difference from the CARES Act economic impact payments is that the $500 additional payment for eligible dependents will be expanded beyond qualified children (aged 17 and under) to include other dependents excluded from payment in the CARES Act, such as adult dependents, including those with no income.”
“This is similar to the definition of dependents used in the HEROES Act proposed by House Democrats, and may expand the number of eligible dependents by at least 26 million people,” according to its analysis.
A memo (pdf) released by the Senate Finance Committee revealed that the equation to determine who gets a payment mirrors that of the CARES Act. It would generally provide $1,200 payments to people who make up to $75,000 and would reduce the payments by $5 for every $100 earned, meaning that those who earn $99,000 are ineligible. A similar equation applies to couples who jointly file their taxes.
The Tax Foundation noted that the second round of payments is “structured identically to the rebates sent to taxpayers in the spring” and “would provide $1,200 for single taxpayers and heads of household, $2,400 for those married filing jointly.” Whats more, the measure “would increase taxpayer after-tax income by about 2.59 percent, with the average rebate totaling about $1,523,” the organization wrote.
After the passage of the bipartisan CARES Act, a frequent point of criticism was that the bill did not provide $500 payments to dependents if they are aged 17 or older, excluding millions of college-age students and disabled dependents.
“Unlike under the CARES Act, where the additional $500 was limited to taxpRead More From Source