Sound Money, March 4, 2021: Stimulus hits the senate, IRS bitcoin guidance and more.
Get Forbes’ top articles on pressing issues that matter to your financial well-being—personal finance, investing, taxes and retirement—delivered to your inbox every week with our Sound Money newsletter. Six weeks into Joe Biden’s presidential tenure, and momentum is finally picking up on his $1.9 trillion stimulus package. The so-called American Rescue Plan received House approval in the wee hours of Saturday morning, and the Senate began debating it on Monday. Yet, with the finish line on the horizon, conservative Democrats (looking at you, Joe Manchin) and even some left-leaning economists appear slightly more ambivalent, thanks in part to a rapid vaccine roll-out that could repair the economy more quickly than anticipated. And markets—once tickled at the thought of an extra $1,400 in each consumer’s hands—can’t decide if they want this much stimulus after all, leaving major indexes volatile. With 12 months of uncertainty under our belts, what’s a little stimulus ambivalence? Nearly 17 million fewer Americans will receive stimulus checks under the income cap revision reportedly agreed to by Senate Democrats and President Biden. (Individuals making $80,000 or more, and couples earning at least $160,000 will receive no stimulus check under the deal, down from $100,000 and $200,000, respectively, in the House version of the relief package.) As Senators continue to debate the legislation, they should consider refining unemployment insurance while scaling back transfers to state and local governments, Contributor Ben Ritz argues.
