Biden Backs Stricter Limits on Stimulus Payments

According to reports, U.S. President Joe Biden has agreed to limit eligibility for stimulus payments after coming under pressure from Democrat Senators including Joe Manchin of West Virginia and Jeanne Shaheen of New Hampshire.

Individuals who earn over $80,000 won't qualify for direct payments compared to the $100,000 cap previously set out, with the limit for couples set at $200,000...

The cheques start at $1,400 before beginning to phase out.

The reports claimed confirmation from a Democratic aide speaking on the condition of anonymity...

The Senate is preparing to take an initial procedural vote on the $1.9 trillion relief bill to move forward as early as Wednesday afternoon.

The bill, if passed, means that millions of Americans will miss out...

And, it also doesn't take into account the varying costs of living from state to state...

Take Massachusetts or, more specifically, Boston, for example...

The average rent for an apartment in Boston is $3,139, with 91% of apartments over $2,000.

A person earning $81k a year will take home a net pay of $4,972 in Massachusetts.

Salary.com says the average nurse's pay in Boston is around $88k, which will make them ineligible for stimulus cheques; although the numbers vary from site to site, you can see my point.

Meanwhile, the average rent for an apartment in Austin, Texas, is $1,388, with only 8% of apartments above $2,000.

The net pay on an $81k salary in Texas is $5,327...

The disparities from state to state and city to city mean the one size fits all policy will impact a lot of people (I'm getting EU vibes here).

Liberal lawmakers have said they will oppose the changes...

Although, it could have been worse, as Senior Democratic officials at one point were considering dropping the full benefit for people making more than $50,000 per year...

Only a backlash led by Senate Finance Chair Ron Wyden and Senate Budget Chair Bernie Sanders ended that.