President Joe Biden has backed a plan to cut the income caps for Americans to receive a direct payment as part of the $1.9 trillion coronavirus relief package set to pass in the coming days, a Democratic source said Wednesday.
The phase-out levels for the $1,400 stimulus checks are:
- $75,000 in income for single filers; the cap for receiving some payment is now $80,000
- $112,500 for heads of households; the cap is now $120,000
- $150,000 for joint filers; now capped at $160,000
The structure would slash the direct payment income caps approved by the House. Under the lower chamber’s bill, individuals making up to $100,000 (and joint filers earning up to $200,000) would have received some amount.
Eight million people who would have received payments under the House bill would lose them under the Senate plan, according to a rough estimate from Howard Gleckman, a senior fellow at the Urban-Brookings Tax Policy Center. Even more people are set to receive smaller payments than they would have under the House proposal, he added. Gleckman estimates the changes would save about $15 billion in a nearly $2 trillion piece of legislation.
Another estimate said roughly 12 million people could lose checks due to the policy change.
Asked Wednesday about whether Biden supports the proposal, White House press secretary Jen Psaki said „he is comfortable with where the negotiations stand.“
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