Congress has just approved sending out lots of $600 checks to people who don’t need them and, in rushing to get another round of checks out the door, is missing a far better opportunity to target this relief in a more meaningful way by just waiting a few more weeks.
The latest round of stimulus checks, like the first round, is tied to 2019 taxable income (individuals earning under $75,000, or $150,000 for married couples, received the full amount, which phased out as taxable income increased). This was a quick and simple way to immediately get payments out and made sense back in April 2019 when most Americans had filed or were finalizing their 2019 tax returns and no one knew what the rest of 2020 had in store.
