# Instead of payroll tax cut, Trump now plans to send checks directly to Americans, soon

**URL:** <https://boards.straightdope.com/t/instead-of-payroll-tax-cut-trump-now-plans-to-send-checks-directly-to-americans-soon/849678>\
**Category:** The Quarantine Zone\
**Tags:** covid-quarantine\
**Created:** [March 17, 2020, 7:48pm UTC](https://boards.straightdope.com/t/instead-of-payroll-tax-cut-trump-now-plans-to-send-checks-directly-to-americans-soon/849678 "2020-03-17T19:48:36Z")\
**Posts on this page:** 20\
**Page:** 6

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**Author:** ![Bill\_Door](https://avatars.discourse-cdn.com/v4/letter/b/50afbb/32.png) [@Bill\_Door](https://boards.straightdope.com/u/Bill_Door)\
**Post date:** [March 25, 2020, 5:16pm UTC](https://boards.straightdope.com/t/instead-of-payroll-tax-cut-trump-now-plans-to-send-checks-directly-to-americans-soon/849678/101 "2020-03-25T17:16:44Z")

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> [@squeegee](#):
>
> Well,
> 
> a) The working poor spend _all_ their money, so having (in my county) 8.25% more of it to spend is pretty compelling I’d say.  
> b) Anyone buying something more expensive, say a $500 TV, will save $41 _if_ they buy it before the tax holiday expires, which is a reasonably compelling reason to go get one sooner than later.  
> c) Local businesses would get some uptake from both these cases (the poor spend 8.25% more, the less poor buy more goods than they would in the next (say) 90 days).  
> d) Local governments get moderate stimulus from b and c.
> 
> Again, I’m not sold on this, but it’s an interesting notion.

Thirty two states plus the District of Columbia exempt food sold for home consumption from state sales taxes. Six additional states tax food at a lower rate than other goods. After rent, also not subject to state sales taxes groceries are going to be the largest expenditure for the working poor. If passed it will save me quite a bit on my new car though. How many cars are poor people buying?

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**Author:** ![Ruken](https://avatars.discourse-cdn.com/v4/letter/r/f475e1/32.png) [@Ruken](https://boards.straightdope.com/u/Ruken)\
**Post date:** [March 25, 2020, 5:37pm UTC](https://boards.straightdope.com/t/instead-of-payroll-tax-cut-trump-now-plans-to-send-checks-directly-to-americans-soon/849678/102 "2020-03-25T17:37:16Z")

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> [@divemaster](#):
>
> From CNN:
> 
> I’m assuming this is based on gross income and not IRS adjusted income? If anyone finds an on-line calculator or table that shows the phase-down, please post a link. TIA.

I recall seeing somewhere it was AGI with a straight-line scaledown but take my memory on this with a block of salt.

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**Author:** ![DrDeth](https://avatars.discourse-cdn.com/v4/letter/d/b487fb/32.png) [@DrDeth](https://boards.straightdope.com/u/DrDeth)\
**Post date:** [March 25, 2020, 6:54pm UTC](https://boards.straightdope.com/t/instead-of-payroll-tax-cut-trump-now-plans-to-send-checks-directly-to-americans-soon/849678/103 "2020-03-25T18:54:28Z")

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> [@squeegee](#):
>
> Well,
> 
> a) The working poor spend _all_ their money, so having (in my county) 8.25% more of it to spend is pretty compelling I’d say.  
> …

Rent isnt taxed. Medicine isnt taxed. Services arent usually taxed. Food isnt taxed in most states.

So, they wont save much.

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**Author:** ![DrDeth](https://avatars.discourse-cdn.com/v4/letter/d/b487fb/32.png) [@DrDeth](https://boards.straightdope.com/u/DrDeth)\
**Post date:** [March 25, 2020, 6:55pm UTC](https://boards.straightdope.com/t/instead-of-payroll-tax-cut-trump-now-plans-to-send-checks-directly-to-americans-soon/849678/104 "2020-03-25T18:55:30Z")

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> [@Skypist](#):
>
> CNN says don’t expect a check until May at the earliest, based on the rollout time for past stimulus checks. So much for Mnuchin’s 2 weeks.

I wont expect a check until I see it. trump will likely sulk and veto.

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**Author:** ![Si\_Amigo](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/si_amigo/32/2877_2.png) [@Si\_Amigo](https://boards.straightdope.com/u/Si_Amigo)\
**Post date:** [March 25, 2020, 8:01pm UTC](https://boards.straightdope.com/t/instead-of-payroll-tax-cut-trump-now-plans-to-send-checks-directly-to-americans-soon/849678/105 "2020-03-25T20:01:09Z")

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I had my hopes up of seeing a check but got shot down today when they said it would be based on 2018 taxes EXCEPT for people who already filed in 2019. WTF! I am getting penalized for filing early? I did’t work most of 2018 and would have gotten a full payout, now based upon my 2019 return I will get nothing. All because I filed early.

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**Author:** ![Velocity](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/velocity/32/18006_2.png) [@Velocity](https://boards.straightdope.com/u/Velocity)\
**Post date:** [March 25, 2020, 8:03pm UTC](https://boards.straightdope.com/t/instead-of-payroll-tax-cut-trump-now-plans-to-send-checks-directly-to-americans-soon/849678/106 "2020-03-25T20:03:25Z")

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> [@DrDeth](#):
>
> I wont expect a check until I see it.\*\* trump will likely sulk and veto.\*\*

Veto for what? Trump has been the one saying bigly things about how urgent it is to get cash into American hands pronto. His neck is on the line this November, and the economy will be the noose around it if he can’t get it to recover.

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**Author:** ![DrDeth](https://avatars.discourse-cdn.com/v4/letter/d/b487fb/32.png) [@DrDeth](https://boards.straightdope.com/u/DrDeth)\
**Post date:** [March 25, 2020, 8:17pm UTC](https://boards.straightdope.com/t/instead-of-payroll-tax-cut-trump-now-plans-to-send-checks-directly-to-americans-soon/849678/107 "2020-03-25T20:17:37Z")

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> [@Velocity](#):
>
> Veto for what? Trump has been the one saying bigly things about how urgent it is to get cash into American hands pronto. His neck is on the line this November, and the economy will be the noose around it if he can’t get it to recover.

Are you expecting rationality out of him? :eek:

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**Author:** ![Velocity](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/velocity/32/18006_2.png) [@Velocity](https://boards.straightdope.com/u/Velocity)\
**Post date:** [March 26, 2020, 4:39pm UTC](https://boards.straightdope.com/t/instead-of-payroll-tax-cut-trump-now-plans-to-send-checks-directly-to-americans-soon/849678/108 "2020-03-26T16:39:49Z")

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Good news: [Mnuchin says the stimulus checks will arrive within three weeks.](https://www.cnbc.com/2020/03/26/coronavirus-stimulus-checks-will-come-within-three-weeks-mnuchin-says.html) That’s around a month sooner than originally estimated.

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**Author:** ![DCnDC](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/dcndc/32/2842_2.png) [@DCnDC](https://boards.straightdope.com/u/DCnDC)\
**Post date:** [March 26, 2020, 5:24pm UTC](https://boards.straightdope.com/t/instead-of-payroll-tax-cut-trump-now-plans-to-send-checks-directly-to-americans-soon/849678/109 "2020-03-26T17:24:44Z")

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Sweet. I am _so_ buying that $700 LEGO Star Destroyer.

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**Author:** ![Mr\_Quatro](https://avatars.discourse-cdn.com/v4/letter/m/bc8723/32.png) [@Mr\_Quatro](https://boards.straightdope.com/u/Mr_Quatro)\
**Post date:** [March 26, 2020, 5:43pm UTC](https://boards.straightdope.com/t/instead-of-payroll-tax-cut-trump-now-plans-to-send-checks-directly-to-americans-soon/849678/110 "2020-03-26T17:43:29Z")

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I think President Bush tried the same thing and it took three (3) months to get the checks out, plus the IRS is understaffed.  
Will the IRS be called back to work early while a USN aircraft carrier is in lockdown from just 23 cases?

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**Author:** ![Skypist](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/skypist/32/169_2.png) [@Skypist](https://boards.straightdope.com/u/Skypist)\
**Post date:** [March 26, 2020, 8:30pm UTC](https://boards.straightdope.com/t/instead-of-payroll-tax-cut-trump-now-plans-to-send-checks-directly-to-americans-soon/849678/111 "2020-03-26T20:30:53Z")

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It sounds like Rep. Thomas Massie (R, KY) is thinking about possibly holding up the vote in the House. He thinks a voice vote might violate the Constitution. :rolleyes:

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**Author:** ![Velocity](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/velocity/32/18006_2.png) [@Velocity](https://boards.straightdope.com/u/Velocity)\
**Post date:** [March 26, 2020, 9:25pm UTC](https://boards.straightdope.com/t/instead-of-payroll-tax-cut-trump-now-plans-to-send-checks-directly-to-americans-soon/849678/112 "2020-03-26T21:25:40Z")

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> [@Mr\_Quatro](#):
>
> I think President Bush tried the same thing and it took three (3) months to get the checks out, plus the IRS is understaffed.

Yes, but far more Americans today use direct-deposit for their tax returns/refunds than back in 2001-2008. So the IRS will be able to wire them the money electronically, which is far easier and faster than paper mailed checks.

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**Author:** ![RioRico](https://avatars.discourse-cdn.com/v4/letter/r/f04885/32.png) [@RioRico](https://boards.straightdope.com/u/RioRico)\
**Post date:** [March 27, 2020, 12:01am UTC](https://boards.straightdope.com/t/instead-of-payroll-tax-cut-trump-now-plans-to-send-checks-directly-to-americans-soon/849678/113 "2020-03-27T00:01:45Z")

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Has anyone produced a table or graph of which income groups will receive how much of the [del]bailout bribe[/del] disaster relief funds? I suspect that low-income groups, who need cash more, will receive less. Am I misguided?

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**Author:** ![Velocity](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/velocity/32/18006_2.png) [@Velocity](https://boards.straightdope.com/u/Velocity)\
**Post date:** [March 27, 2020, 12:12am UTC](https://boards.straightdope.com/t/instead-of-payroll-tax-cut-trump-now-plans-to-send-checks-directly-to-americans-soon/849678/114 "2020-03-27T00:12:42Z")

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> [@RioRico](#):
>
> Has anyone produced a table or graph of which income groups will receive how much of the [del]bailout bribe[/del] disaster relief funds? I suspect that low-income groups, who need cash more, will receive less. Am I misguided?

I can’t link to a graph, but the low-income groups won’t receive less. They’ll get the most.

Everyone who earned $75,000 or less = gets a check for $1,200.  
Those who earned between 75-99k = get a check for a lesser amount.  
Those who earned over $99,000 = get nothing.  
The low-income groups get the most. Of course, $1,200 doesn’t go far to begin with. Ideally it should have been double or triple that - I hope Congress approves a second or third such round of payments in the summer if the recession persists.

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**Author:** ![Velocity](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/velocity/32/18006_2.png) [@Velocity](https://boards.straightdope.com/u/Velocity)\
**Post date:** [March 28, 2020, 12:20am UTC](https://boards.straightdope.com/t/instead-of-payroll-tax-cut-trump-now-plans-to-send-checks-directly-to-americans-soon/849678/115 "2020-03-28T00:20:13Z")

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[Most of the $1,200 stimulus payments will be sent out by April 6.](https://www.yahoo.com/money/coronavirus-aid-checks-who-is-eligible-when-to-expect-it-and-more-174446656.html)

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**Author:** ![galen\_ubal](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/galen_ubal/32/4440_2.png) [@galen\_ubal](https://boards.straightdope.com/u/galen_ubal)\
**Post date:** [March 28, 2020, 12:51am UTC](https://boards.straightdope.com/t/instead-of-payroll-tax-cut-trump-now-plans-to-send-checks-directly-to-americans-soon/849678/116 "2020-03-28T00:51:34Z")

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> [@Velocity](#):
>
> [Most of the $1,200 stimulus payments will be sent out by April 6.](https://www.yahoo.com/money/coronavirus-aid-checks-who-is-eligible-when-to-expect-it-and-more-174446656.html)

It’d be a bit more accurate to say the Mnuchin said that he wants to send out payments by April 6.  
Also, that really only applies to those for whom the IRS has direct deposit information - probably the large majority, but not all. Those who don’t will get a paper check, which some say will take up to four months longer.

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**Author:** ![RioRico](https://avatars.discourse-cdn.com/v4/letter/r/f04885/32.png) [@RioRico](https://boards.straightdope.com/u/RioRico)\
**Post date:** [March 28, 2020, 12:23pm UTC](https://boards.straightdope.com/t/instead-of-payroll-tax-cut-trump-now-plans-to-send-checks-directly-to-americans-soon/849678/117 "2020-03-28T12:23:47Z")

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> [@Velocity](#):
>
> I can’t link to a graph, but the low-income groups won’t receive less. They’ll get the most.
> 
> Everyone who earned $75,000 or less = gets a check for $1,200.  
> Those who earned between 75-99k = get a check for a lesser amount.  
> Those who earned over $99,000 = get nothing.  
> The low-income groups get the most. Of course, $1,200 doesn’t go far to begin with. Ideally it should have been double or triple that - I hope Congress approves a second or third such round of payments in the summer if the recession persists.

$75k is low-income in Silicon Valley and San Francisco. We live on half that. I wondered more how the total payouts will be distributed across all income levels up to the limit.

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**Author:** ![Velocity](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/velocity/32/18006_2.png) [@Velocity](https://boards.straightdope.com/u/Velocity)\
**Post date:** [April 8, 2020, 8:01am UTC](https://boards.straightdope.com/t/instead-of-payroll-tax-cut-trump-now-plans-to-send-checks-directly-to-americans-soon/849678/118 "2020-04-08T08:01:18Z")

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A [second round of direct stimulus payments to American households](https://www.forbes.com/sites/sarahhansen/2020/04/06/more-coronavirus-relief-could-be-on-the-way-including-a-second-round-of-stimulus-checks-goldman-sachs-predicts/#25cff21c46b1) could be on the way, too, although still a far distance off (needs a lot more legislating.)

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**Author:** ![Velocity](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/velocity/32/18006_2.png) [@Velocity](https://boards.straightdope.com/u/Velocity)\
**Post date:** [April 8, 2020, 8:08am UTC](https://boards.straightdope.com/t/instead-of-payroll-tax-cut-trump-now-plans-to-send-checks-directly-to-americans-soon/849678/119 "2020-04-08T08:08:12Z")

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Some additional sources (too late to edit):

> **[Trump says considering second round of direct payments to Americans](https://www.reuters.com/article/us-health-coronavirus-usa-trump-payments/trump-says-considering-second-round-of-direct-payments-to-americans-idUSKBN21O33M)**
>
> U.S. President Donald Trump said on Monday that a second round of direct payments from the federal government to Americans was under serious consideration to help limit the economic fallout from the coronavirus pandemic.

> **[Pelosi calls for more direct payments to Americans as part of next relief...](https://www.businessinsider.com/pelosi-wants-more-direct-payments-to-americans-coronavirus-relief-package-2020-4)**
>
> Speaker of the House Nancy Pelosi called for another coronavirus relief package "for some other things that we need" during an interview on CNBC.

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**Author:** ![susan](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/susan/32/17537_2.png) [@susan](https://boards.straightdope.com/u/susan)\
**Post date:** [April 8, 2020, 6:20pm UTC](https://boards.straightdope.com/t/instead-of-payroll-tax-cut-trump-now-plans-to-send-checks-directly-to-americans-soon/849678/120 "2020-04-08T18:20:49Z")

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Be nice if the first round went out.

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