DC Tax Flash: House Approves Bill to Send $2,000 Payments to Individuals
The House today approved legislation (H.R. 9051) that would boost the $600 payments to individuals in the recently enacted Consolidated Appropriations Act, 2021 by $1,400, to a maximum amount of $2,000. The Caring for Americans with Supplemental Help (CASH) Act passed on a 275-134 vote.
The bill now goes to the Senate and an unknown future. While the bill passed the House with near-unanimous Democratic support and more than 40 votes from Republicans, it is uncertain if Senate Majority Leader Mitch McConnell (R-KY) will bring it before the Senate. Minority Leader Chuck Schumer (D-NY) said today that he will make a motion to pass the bill by unanimous consent, leaving it to Republicans to object.
As summarized by the Ways and Means Committee, the CASH Act would:
- Increase the value of the economic impact payments (EIPs) provided in the end-of-year COVID relief package so that each eligible family member receives $2,000, up from $600; and
- Apply the same, broader eligibility established in the end-of-year package to mixed-status families where one spouse has a Social Security Number (SSN). As specified in the latest COVID relief legislation, these families are eligible for the EIP amount for each family member with an SSN, and can claim the corresponding amount for the first round of economic impact payments when they file their 2020 taxes.
The text of the CASH Act is posted here.
A Joint Committee on Taxation revenue estimate for the legislation is posted here. It estimates that the bill would reduce federal revenue by almost $464 billion.
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