A fixed amount of money is paid to a taxpayer by the U.S. government through checks are called a stimulus check. The U.S. government sent these stimulus checks to its citizens to create stability and flow of money in the market. It is considered as an important step to boost the economy by various market and financial experts. The main purpose of these checks is to boost consumption and drive revenue at retailers and manufacturers. A total of 4.5 million more Americans will be getting a $1,100 check before the end of the year while 9 million payments are expected to go out under the Golden State Stimulus II to California residents. The definition of stimulus checks is: Stimulus checks are checks sent by the U.S. government to taxpayers to boost their spending power and spur economic activity.
The United States Government issues these checks in case of any recession, national emergency or pandemic. These checks are mainly mailed to the taxpayers. The amount in the stimulus check is determined by the taxpayer’s filing status. It means if a person is paying more tax in normal circumstances he or she will get more in their stimulus check. The Congressional Budget Office (CBO) researched and concluded that the California state stimulus check provided by the ARRA created between 1.6 million and 4.6 million jobs in 2011. Stimulus checks are very helpful in maintaining the flow of currency as it helps the consumer to buy necessary goods for the family in the pandemic.
But there are some critics also there, they tell about the ineffectiveness of Stimulus Checks. They criticise the result of the program. They argue that stimulus added some $1 trillion to the deficit of the country. Money from stimulus checks creates a balance in the supply and demand of goods. A study suggests that unemployment rates were even higher after the stimulus was implemented. Even after issuing California golden state stimulus checks, The unemployment rate stands at 5.2%, still higher than its pre-pandemic level of 3.5%. The Government of the United States Of America will be issuing some Federal stimulus checks for eligible citizens with various economic offerings in 50 states across the USA.
Examples of Stimulus Checks:
During the financial crisis of 2008, check stimulus was distributed by the administration of then-President George W. Bush under the Economic Stimulus Act of 2008. The next president Obama also continued the program.
There were different slabs for every eligible citizen to get a stimulus check. Every eligible individual was getting between $300 and $600 per month. Every Married couple taxpayers who were filing joint returns were getting between $600 and $1,200 per month, while parents were getting an additional $300 for each qualifying child. These stimulus checks will Build Back Better framework makes investments in families
During the pandemic, The United States government decided to send stimulus to eligible candidates under the CARES Act. The United States Government issues these checks in case of any recession, national emergency or pandemic. These checks are mainly mailed to the taxpayers. They have issued 3 stimulus checks to date. A total amount of $3,200 to eligible adults are paid during this period. Under the Coronavirus Aid Relief and Economic Security Act, checks with the amount of $1,200 were mailed to eligible citizens in March 2020. A 2nd stimulus check was issued with the amount of $600 in a December relief measure. A 3rd stimulus check with the amount of $1,400 under the American Rescue Plan was signed in March by President Joe Biden. The administration of President Joe Biden is planning a fourth stimulus check for eligible citizens.
California Golden State Stimulus:
California stimulus is planning to give a one-time payment if you receive California Earned Income Tax Credit (CalEITC) or file with an Individual Taxpayer Identification Number (ITIN). The Golden State Stimulus aims to Support low-income Californians and to Help families those facing hardship due to COVID-19. An amount of $600 or $1,200 payment will be made by the California administration per tax return.
Here are some qualifying criteria to be eligible for getting California golden state stimulus:
- The individual should Be a California resident on the date payment is issued.
- A candidate should be a CalEITC recipient or an ITIN filer who made $75,000 or less (total CA AGI).
- They should have filed your 2020 taxes.
The fourth batch of stimulus checks went out on Oct. 15 and was worth about 890 million dollars. Anyone earning less than $75,000 in the state of California can expect checks between $600 and $1,100. Anyone eligible for the first program could see an extra $500. Child Tax Credit due date is extended till July next year.