Month: March 2020

Senate Fails to Pass $2T Stimulus Package

Posted on by Bobby Broadway

This really shouldn’t be difficult, but unfortunately this is the reality we live in. Senate Democrats argue that the current $2T Stimulus Bill contains a $500B lending program aka “slush fund” the Treasury Dept controls and will allow them to select who will receive the the funds. Senate Minority leader Chuck Schumer and other Democrats maintain that the package should be more heavily favored for the people, and restrictions for how companies will use the money.

Republicans on the other have accused the Democrats of playing politics, and not having the urgency needed to help Americans out of work due to COVID-19 pushing Mayors/Governors to lock down cities and states.

So who is right?

I don’t know, but lets re-visit the not too distant past for some insight. Look back to late 2008 during the financial crisis, the last stimulus package that bailed out the automobile industry and big banks (TARP). While the bailout was praised for saving the auto industry and stabilizing the banks, the major criticism of the bailouts was that it was not felt by the people. President Obama himself admitted that not enough was done to help Americans directly who were had underwater mortgages.

With that said, is there some kind of rule against splitting this stimulus up into 2 parts? One for the people and one for the large and small businesses. I think everyone can agree on sending Americans money, either $1200 or $2000. That can be ironed out, so why not come to an agreement on a stimulus for the people first instead of trying to package a huge bill that includes a stimulus for business?

If you quickly get something out for the people and then separately tackle a stimulus for the businesses. You can provide the people will relief while taking the time necessary to put together a business stimulus package that restricts how the money is used (buybacks or paying bonuses to execs).

As always…

there is something to be said, “It’s On Broadway” to step up and say it!!

Senate Republican's Stimulus Bill Not Doing Enough for the Poor

Posted on by Bobby Broadway

When everyone can agree, with COVID-19 shutting down cities in the United States and countries in Europe. A stimulus to get the people thru these tough times is necessary, unfortunately Republican Senator Mitch McConnell sent a stimulus package that doesn’t really help the most needy.

The legislation would provide checks of $1,200 per adult for many families, as well as $500 for every child in those families. Families filing jointly would receive up to $2,400 for the adults. The size of the checks would diminish for those earning more than $75,000 and phase out completely for those earning more than $99,000. The poorest families, those with no federal income tax liability, would see smaller benefits, though the minimum would be set at $600.

Washington Post

Limiting the payment amount for those without federal tax liability was a change from the original White House proposal, and caught some Republicans off-guard, provoking criticism. Sen. Josh Hawley (R-Mo.) tweeted: “Relief to families in this emergency shouldn’t be regressive. Lower income families shouldn’t be penalized.”

Washington Post

An early analysis showed the vast majority of middle class people would receive the cash payment, but the percentage doing so falls dramatically toward the bottom of the income distribution. About 22 million people earning under $40,000 a year would see no benefit under the GOP plan, according to an initial analysis by Ernie Tedeschi, a former Obama administration economist.

Washington Post

It’s not that McConnell’s payouts are less than what others like Senator Cory Booker and Maxine Waters have suggested ($2K). The issue is with the provision that would limit the amount for those without federal tax liability. A provision that even caught the White House by surprise. As noted in the Washington Post McConnell’s proposal would prevent approximately 22 million people earning under $40K a year. THe people who need the stimulus the most!!!!

Meanwhile McConnell’s proposal would take care of the wealthy. How many times do the people have to be slapped in the face in favor of big corporations receiving tax breaks?

Action is needed, but we need the right action to happen!

As always…

there is something to be said, “It’s On Broadway” to step up and say it!!