Tuesday, December 29, 2020

$600 or $2,000 Stimulus Payment? Explaining the Disagreement In Simple Terms

 


"I don't want to hear that we can't afford it. I don't want to hear that it would add too much to the deficit. Senate Republicans added nearly $2 trillion to the deficit to give corporations a massive tax cut.Leader McConnell holds the key to unlocking this dilemma.”

Senate Minority Leader Chuck Schumer

Senate Majority Leader Mitch McConnell on Tuesday blocked an effort to quickly pass a measure to increase direct stimulus payments from $600 to $2,000, though the legislation could be voted on at a later time or date if McConnell so chooses.

Why not $2,000?

Why does McConnell resist efforts to raise the payments to $2,000 when the House voted Monday to increase the second round of federal direct payments to $2,000 as Democrats embraced President Donald Trump’s calls to put more money in Americans’ pockets?

First of all, if McConnell embraces a larger direct payment, he risks splitting the party and contradicting the hard-line strategy of citing concerns about the federal budget deficit. It is by far the most realistic and politically problematic suggestion for Republicans.

Why? Because the decision puts them in a very small box: Either vote to massively increase the national debt -- by giving $1,400 more to every qualifying individual in the country – or vote against what is much-needed money for people who have been devastated by the economic effects of the ongoing coronavirus pandemic.

Chris Cillizza, CNN Editor-at-Large, says …

So, either violate a bedrock principle of conservatism (the government is spending us into unmanageable debt!) or be attacked as heartless by Democrats. It's a lose-lose. Bigly. Especially if you are Sens. Kelly Loeffler or David Perdue, both locked in tight runoff races on January 5. Both incumbent Republicans need base conservatives with them to win, so a vote for more government spending isn't a good one.

But they also can't actively agitate the rest of the state -- including swing voters in the suburbs who want the government to help those struggling as much as they can. It's a nearly impossible line to walk, politically speaking.”

(Chris Cillizza. “Why a vote on $2,000 stimulus checks is an absolute nightmare for Senate Republicans.” CNN. December 28, 2020.)

On January 20, Trump will be gone, but remember McConnell was just reelected in November to a seventh term. Consider that. But, conversely consider that the $2,000 checks could be a breaking point in the battle for the Senate majority happening right now in Georgia.

Trump is thinking only of himself. Needy Americans and political parties be damned. He wants his final act as President to be sending more money to people. It's good for his political future if he runs again in 2024 – He will undoubtedly say to voters, “Remember when I gave you all that extra money?”

McConnell knows adding $2,000 checks to this bill would cost hundreds of billions more. In order for it to pass, McConnell would need 12 Republicans to sign on and right now, it’s not clear that many exist.

Lauren Fox, CNN congressional reporter, says …

Sen. Marco Rubio, a Republican from Florida, has said he’d back the payments. And Sen. Josh Hawley, a Republican from Missouri, has been a strong proponent of stimulus checks. But, a vote on the issue would undoubtedly divide the Republican conference and force Georgia Sens. Kelly Loeffler and David Perdue to take a tough vote just days ahead of their runoff election. It would also expose members who vote no to the ire of a President who has never taken kindly to being crossed.

That doesn’t mean McConnell doesn’t go that direction. A vote for $2,000 checks could also boost Perdue and Loeffler in their races if they voted for it. The provision is popular. And, even if the measure didn’t pass, putting it on the floor would demonstrate to the President that McConnell tried, but the votes just weren’t there. McConnell, as usual, has been seeking the input of his members.”

(Lauren Fox. “Mitch McConnell faces decision over vote to increase stimulus payments to $2,000.” CNN. December 29, 2020.)

The measure would need 60 votes to pass in the Senate, meaning all Democrats and the two independent senators who caucus with them would need 12 Republicans to vote with them. If McConnell announces plans to bring the bill up for a formal vote, it could still take several days for that vote to occur given the procedural hurdles.

Meanwhile the Treasury Department has said the $600 payments will start going out as soon as this week. If Congress approves the increase to $2,000, it will then be added to the original sum.

The size of the direct stimulus check is presently a political football being tossed around by elected lawmakers in Washington who have more regard to partisan fallout than to the relief of poor, innocent Americans struggling in a deadly pandemic.



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