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Tax implications of the American Rescue Plan

By: billkrusehkaglobal

The American Rescue Plan Act (ARPA), referred to as the Biden Stimulus prior to passage, is the answer to the progression of the stimulus bills passed previously and reflects where the country is today with regard to COVID.

The first stimulus, largely in the Round 1 PPP, was in reaction to the sudden unemployment of millions of
Americans as a result of Covid-19 restrictions on workplace, dining, and commerce in general. In this first stage the PPP sent money directly to employers to keep employees off of and prevented the bankruptcy of the state’s unemployment plans. Although not perfect, it successfully achieved that goal.

This new stimulus gets into the grit of life. The fact of the greater damage is that Americans in lower income brackets have borne the brunt of the Covid economy. This legislation focuses on households making less than $75K per individual or $150K jointly. It builds a framework, which will likely become a centerpiece of the next major tax legislation from the Biden Administration, of assistance for households, mainly those with children, making less than $30K. The bill also helps out our elderly and disabled Americans through state subsidy of housing and wellness programs.

In general, I love the grittiness of the bill, pushing aid to those truly impacted by loss of jobs. Don’t listen to those who say some small percent of the law goes to Americans.

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