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  1. #1
    Nick!
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    Stimulus Bill

    Democrats and Republicans now have a deal for a $2 trillion stimulus bill. The full text hasn't been made available yet, but based on initial reports I was able to create a fairly complete overview of it's provisions (over 90% of appropriations accounted for). Not sure if this is anything SG will be super interested in, but I'll post it just in case. Here it is:

    1. $500 billion liquidity fund for businesses
    a) $454 billion in Fed loans to mid-sized companies (500-10k employees) managed by Treasury
    -Recipients cannot cut healthcare, do stock buybacks, union-bust, or raise exec. pay
    -Businesses owned by federal elected officials ineligible
    -Creates new Treasury Inspector General for loan program
    -Creates congressional oversight committee as well
    b) $45 billion aviation bailout
    -$45 billion for Boeing and commercial airlines
    -$1 billion specifically for air cargo

    2. $377 billion in federally-backed small business loans
    a) $350 in loans to be forgiven if payroll is made though term
    b) $17 billion in Small Business Administration loans for current recipients
    c) $10 billion in emergency SBA grants

    3. $260 billion for unemployment insurance
    -$600/w increase in UI benefits for 4 months
    -New UI program for self-employed, nonprofit employees, and contractors (50% of avg. state benefit + $600 weekly)
    -UI benefits extended by 13 weeks
    -Eliminates state-imposed waiting week

    4. $250 billion in individual direct checks
    -$1200 per adult, $500 per minor
    -Phase out income threshold is $75k ($150k for couple)
    -Phases out $5 for every $100 above threshold
    -Based on most recent return between 2018/2019
    -Adult dependents and nonresident aliens ineligible

    5. $150 billion in Covid expenses for state/municipal gov
    a) State funds based on population, floor of $1.5 billion
    b) Municipalities with population > 500k eligible for direct grants, which are subtracted from the state fund
    c) $8 billion for Indian tribes
    d) $3 billion for Washington, D.C.

    6. $150 billion for healthcare
    a) $100 billion for hospitals
    b) $4.3 billion for CDC pandemic response
    c) $1 billion for Defense Production Act medical supply chain

    7. $25 billion for local public transit
    a) $3.7 billion for New York subway system

    8. $155 billion in miscellaneous emergency appropriations
    a) $45 billion for FEMA disaster relief
    b) $30.75 billion for education
    c) $10 billion borrowing authority for USPS
    d) $10 billion in airport grants
    e) $7 billion to combat homelessness
    f) $6.5 billion for community development block grants
    g) $3.5 billion in child care block grants
    h) $3 billion for emergency aviation payroll
    i) $2 billion for Indian reservation aid
    j) $1 billion for Amtrak bailout
    k) $400 million for state elections
    l) $150 million for National Endowments for the Arts and Humanities
    m) $25 million for Kennedy Center

    9. Temporary tax breaks
    a) Employer payroll tax deposit delayed
    b) Up to $100k can be withdrawn from 401k without penalty
    c) Tax credit for closed businesses that retain employees
    d) Required Minimum Distributions waived for this year
    e) $300 charitable deduction for those who don't itemize

    Any thoughts on the bill?

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  3. #2
    Phoenix_
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    My only thought it this:


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  5. #3
    BoM


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    I know what I'm doing @John

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  7. #4
    Wawa
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    $500 billion to businesses, with no strings attached, handed out to any corporation the government wants to help is a terrible idea. Meanwhile, half of that money is going to be given to the American people; metaphorically speaking, that is a slap in the face. Nobody will be receiving that paycheck until at least May, a month and a half after COVID19-related job layoffs started. And when that paycheck does arrive, it will MAYBE only be enough to pay off 1 month of rent/mortgage (depending on the household size and the actual rent/mortgage). When you factor in car, credit, student loan, utilities, insurance, etc. payments, those laid off people are still fucked. We're still at the beginning of this crisis, the peak of the outbreak is still at least 3 weeks away. Lockdowns are not ending anytime soon.

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  9. #5
    Gentoo
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    Quote Originally Posted by Wawa View Post
    $500 billion to businesses, with no strings attached, handed out to any corporation the government wants to help is a terrible idea. Meanwhile, half of that money is going to be given to the American people; metaphorically speaking, that is a slap in the face. Nobody will be receiving that paycheck until at least May, a month and a half after COVID19-related job layoffs started. And when that paycheck does arrive, it will MAYBE only be enough to pay off 1 month of rent/mortgage (depending on the household size and the actual rent/mortgage). When you factor in car, credit, student loan, utilities, insurance, etc. payments, those laid off people are still fucked. We're still at the beginning of this crisis, the peak of the outbreak is still at least 3 weeks away. Lockdowns are not ending anytime soon.
    "-Recipients cannot cut healthcare, do stock buybacks, union-bust, or raise exec. pay"

    If Papa's Pizzaria closes down, it's a tragedy, if Walmart closes down, 2 million people are out of a job and tens of millions will not have easy access to affordable food. This will keep the economy from collapsing and will save many people from losing their jobs. Keep in mind this is an ADDITION to unemployment, allowing more people to collect money in less time. Assuming that this crisis does not last beyond August, this is a generous amount of money designated to those who are and will be impacted by this.

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  11. #6
    Nick!
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    I wanna clarify a couple things about the bill

    Quote Originally Posted by Wawa View Post
    $500 billion to businesses, with no strings attached, handed out to any corporation the government wants to help is a terrible idea.
    There are many strings attached to the loan program. Assisted companies cannot buy back stocks, move against labor unions, cut employee health benefits, or award raises/bonuses to executives throughout the entire term of the loan. There's also a new employee retention tax credit for corporations, which discourages layoffs. These are very strict terms aimed at fixing the problems that plagued the last stimulus bailout.

    Quote Originally Posted by Wawa View Post
    Nobody will be receiving that paycheck until at least May, a month and a half after COVID19-related job layoffs started.
    The one time checks are likely to be mailed out within 3 weeks of the bill being signed into law (which will likely happen on Friday).

    Quote Originally Posted by Wawa View Post
    And when that paycheck does arrive, it will MAYBE only be enough to pay off 1 month of rent/mortgage (depending on the household size and the actual rent/mortgage). When you factor in car, credit, student loan, utilities, insurance, etc. payments, those laid off people are still fucked.
    Newly unemployed people aren't supposed to live off that one time payment, that's why the stimulus bill also includes unemployment insurance expansion. Every UI recipient will receive $600 more than they normally would per week for the next 4 months. The bill also waives the typical 1-week UI waiting period so newly laid off workers can get relief faster. An extra $600/w would mean that UI recipients who were previously low or medium income earners would actually get paid MORE by UI than they did by their old job.

    This is a VERY good bill in my opinion. I thought the Senate would fuck up, but they proved me wrong. In fact, the CARES Act (this bill) just passed overwhelmingly, and is now headed to the House.

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  13. #7
    Nick!
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    Huge update: Last minute language added to the bill makes UI cover 100% of income up to $1500/week for the next 4 months. That kind of entitlement spending is unprecedented if I recall correctly, unless you index the New Deal to inflation.

    Bill passed 96-0

    EDIT: Not really sure why Dems pushed for this language. 100% of income of lower and even middle income recipients was already covered by the $600 increase, so this amendment effectively just gets rid of a reasonable means test, and most Democrats are for means testing entitlements. Could be the doing of Sanders, who briefly held up the bill this afternoon, and is also ardently opposed to means testing.

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  15. #8
    Wawa
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    You're both missing the point, this is the 2008 bailout all over again where banks survive and homeowners get fucked. Unemployment claims just spiked to 3.3 million, while the Dow Jones just had its best day since 1933.

    We're currently heading towards another housing crisis because millions of people will be out of work for at least 2 more months (I think it's way too optimistic to say otherwise) and half the country was already living paycheck to paycheck before this happened. Unemployment and the stimulus (unless more stimulus bills are passed) will not be enough to keep families in their homes, and there will be lots of foreclosures on the horizon unless there's mortgage freezes.

    Honestly though, the US government deserves no gratitude from anyone regarding this crisis, even when they finally decide to throw us a stimulus bone. We're now the epicenter of this entire outbreak, now ahead of China who greatly outnumbers our population, due to the piss-poor leadership from Washington. Congrats 'Merica, we're indeed #1.

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