THE NEW $1200 STIMULUS CHECK | ALL DETAILS REVEALED

What's up guys, it's Graham here. So wow, it's been a while since we talked about what's going on with the stimulus check and stimulus package. Even though this is something I have not covered since May 29th, which is basically like a decade in YouTube time, I've been actively keeping up to date on everything. There have been a lot of new updates and developments along the way that we should discuss because chances are one of these is going to impact you over the coming few months.

For example, we've got the potential for unemployment benefits to be continued. We've potentially got a $4,000 tax credit coming. We could see another $1,200 stimulus check pretty soon. There might be a bonus for those returning back to work and a lot of infrastructure spending that could create a lot of new jobs for the economy. So this is everything you need to know about the upcoming stimulus package, what's currently in the pipeline right now, and then realistically when we could expect all of this to happen.

Consider this video like 99% of the stimulus information out there today, just cherry-picked and condensed down into the most up-to-date concise information as of today. I'm going to be including the information that I think would be the most relevant to most of you watching. So with that said, if you guys enjoy videos like this, make sure to get the like button back to work and employ it by making it turn blue. That's it! It helps up my channel tremendously and the like button really likes being put to work. So if you wouldn't mind, it helps me out a lot. Thank you so much!

And with that said, let's begin the video. So first, what's probably going to be the most urgent pressing matter for the Senate to discuss would be the increased unemployment benefits of $600 a week that's currently set to expire on July 31st. This to me is probably the most important one to cover, not only for everyone out of work but also for the entire economy. Even though we did just report higher job growth than initially anticipated, the results of that are somewhat skewed.

That's because the Bureau of Labor Statistics is counting people as employed when in fact they've been put on temporary leave and not receiving an income. So technically, they're kind of unemployed because it's not meant to be permanent for now, if that makes sense. The job growth report also doesn't take into consideration that cases have been increasing, businesses have been reclosing, and new statewide mandates have gone into effect. What we've seen last month won't necessarily be an indication of what we're gonna see this month.

And with that, here's where we are now. The House passed a three trillion dollar CARES Act that would extend the $600 a week unemployment benefit all the way until January of 2021. However, it's been made very clear that that is not gonna be passing the Senate. So that leaves a lot of people wondering what's gonna be happening now.

Now, one proposal that was just recently brought up is to tie the unemployment benefit to each state's unemployment rate. So the $600 a week would continue until the state's three-month average total unemployment levels fall below 11%. After that, the benefit would reduce by $100 for each percentage point decrease, and that would remain in effect until March of 2021. There's also been discussion about continuing the unemployment benefit past July 31st, but instead at a lower rate.

As of right now, everything is pointing to the unemployment benefit needing to be extended for a little bit longer, although it's up in the air how exactly that's going to be done. My feeling is that the unemployment benefit will most likely be extended in some way or another, although it'll probably be a last-minute announcement. Realistically, it'll probably be at a reduced rate or tied to the state's unemployment level in one way or another so that way it can be gradually weaned off of.

Now, in addition to that, we got a bit of a controversial one here, but let's talk about it. I'm going to be going over all the details, and that would be the four thousand dollar ExploreAmerica tax credit. Now, here's how that works. Obviously, tourism and travel have been impacted a lot by the illness, and one of the ways that we could get people spending again is to give them a tax credit.

This would allow for up to 50% of your travel-related expenses to be deducted from your taxes, up to a maximum of $4,000. Or in other words, you could spend up to $8,000 in travel and then get half of that credited back to you when you file your tax return. This would apply to things like airfare, lodging, hotels, restaurants, recreation, smashing the like button, and so on.

What makes this really unique is that a tax credit like this is really like a dollar-for-dollar benefit. Meaning if you owe $100 in taxes but you get a $100 tax credit, that means now you would owe nothing. So essentially, this is like them giving you a 50% off coupon to go travel. In the event this passes, the goal is to make this one so appealing that people are gonna be tempted to go out and spend more money on airlines, restaurants, hotels, and things like this. That's inevitably going to help the entire economy as a whole.

But unfortunately, now we'll go into some of the realities of this. First of all, I'm sure the majority of people out there don't have the spare cash lying around to go on vacation, go into restaurants, go to travel, go spend money on hotels, especially if they're unemployed. And really, if unemployment is above 10%, it comes our going down if people are losing their jobs.

The main beneficiary of this tax credit is really going to be people that don't need the tax credit to begin with. Now objectively, I will admit this will probably make traveling and going to restaurants and hotels way more appealing so that that way people spend more money and there will be more money circulating back into those businesses and back into the economy. But I think incentivizing people to spend may not be the best option because those are the people who have the disposable income to spend.

Some people might also argue that instead of giving people a $4,000 tax credit towards traveling, why not just give them $4,000 to begin with? Now, it sounds on the surface like a cool idea until you realize what's called the velocity of money. This is really how many times our money passes through the economy depending on what you do with it. The point of tying this benefit towards spending and travel is that for every $1 spent, you produce $5 of value within the economy.

Imagine it like you're spending $10 at a restaurant, and then that $10 gets paid to your server who then pays that $10 towards the rent, and then that goes to the landlord who then pays $10 towards a contractor to fix the roof, who then spends $10 back at the restaurant, and the entire cycle starts over again. All of a sudden, that $10 that was spent produces way more value than if the person just got the money and then put it in a savings account or under a mattress and then did nothing with it.

So that's why they want to encourage more spending now so that overall in the economy we could get more value. That's the logic behind it. After that, we got probably the most popular one here that everyone wants to know about, and that would be the next stimulus check. In the previous stimulus package, checks of $1,200 to $2,400 or higher were sent out to individuals and families depending on their income and number of dependents.

Even though it didn't exactly go smoothly, it was something, and many people argue that another round of stimulus checks is necessary. As of right now, it does look as though another round of stimulus checks is going to be in the works, but it's unclear exactly how and for what amount. Our president said that he is in favor of a second stimulus check being sent to Americans and wants this one to be even bigger than before.

But that leaves it a bit up to interpretation if he's talking about another stimulus type being sent or if that's going to be in the form of a tax credit. The most recent proposal when it comes to this was within the Heroes Act, which would give a second stimulus check to everyone who received the first one plus dependents as well. This would allow everyone earning under $75,000 a year to get another $1,200 stimulus check, or you could get $2,400 if you're married and earning under $150,000 a year, with that stimulus amount decreasing by $5 for every $100 you make above that threshold.

Now, this would also include dependents, up to three of them who each would be eligible for an additional $1,200. Meaning a family of five, a married couple with three children, could be eligible to receive up to $6,000. What I think is more realistic of happening is that everyone who received a previous stimulus check is just gonna end up receiving another one in August. So I think it's pretty much gonna be the same thing as before.

I'll be going over the timetables as to when this could actually happen, but as of everything I've seen so far, this one seems like the most realistic of actually happening. Very interestingly, we also have this Senator Rob Portman discussing the need to incentivize workers to return back to work. Instead of focusing on unemployment, we should do something to give them a strong push to get back to their jobs.

He proposed that workers should receive a $450 a week bonus to return back to work that they could keep in addition to what they make from their jobs. According to him, $450 is an amount that would leave people better off than staying on unemployment, and it would put more cash in people's pockets. It would make employers more likely to see their employees return, and it's slightly cheaper than giving out $600 per week as it stands right now.

However, there are some very obvious downsides with this one. This does nothing for frontline workers or employees who never stopped working to begin with, and even though fairness is not something they'll take into consideration, it is rather demotivating to the people who never stopped working at all and get nothing. Second, this one does nothing for people who are on Social Security Disability or retirement income. Third, this does nothing to the people who don't have a job to return back to, and arguably those would be the people who are most in need of stimulus.

It'll be interesting to see whether or not this one actually gets implemented, but I have a feeling it's probably not going to happen. I would say we're more likely to see a variation of this one instead, and that would be a payroll tax cut. The president's made it no surprise that he's highly in favor of this. Instead of giving a back-to-work bonus, reducing an employee's taxes would kind of be the same thing.

See, here's how this works: any time you pay your taxes, you pay a small portion of that into what's called Medicare and Social Security, which works out to be about 7.65%. Any reduction in tax like that would just end up leaving you with more money left over in your paycheck. If they ended up cutting it out entirely, it would be the equivalent of you getting a 7.65% raise on every single paycheck. So if you're making $4,000 a month, getting an extra $300 a month on top of that really begins adding up.

Over a year, that's gonna be an extra $3,600 that you'll have available to you, so it adds up. This was actually done on a small scale in 2011 and 2012, reducing payroll taxes for employees to 4.2%, and that increased disposable income by roughly $100 billion a year. On the surface, this will be the easiest one to implement; there's going to be no confusion over who gets what, and it's not going to be sent to dead people.

Simply put, if you work and get a paycheck, this one is gonna be directly applied. However, there are some downsides to this one. This requires you to actually be working, so if you're laid off or you're out of work, then this one does nothing to help you. Second, if you're actually working, you wouldn't be getting a lump sum upfront, but instead, you would be getting a little bit of money over time, so this is not gonna help people who need money up front.

The third, even though this should incentivize employees to go and make a little bit more money and it applies to everybody, it's unclear if this is really going to be enough. And fourth, this is gonna pull funding away from Social Security and Medicare, which is already grossly underfunded as it is. This means the people who are currently working get all the benefits, and then we're gonna have to figure out the Social Security programs later on down the line. That's somebody else's problem, which honestly I have to say is an entire mess in and of itself, but that could just be saved for another video.

Finally, we got infrastructure spending, potentially over one trillion dollars worth of it. The goal is that the government is going to spend money to create new highways, roads, bridges, rail systems, you name it. In turn, that's going to provide more jobs and more money back into the economy. When it comes to this, it was said that when you spend a dollar, you get back more than a dollar in terms of revenue from the economic benefit.

In a way, I think he's right. I think there are investments we can make back into the economy that will give people jobs and more money to spend that way. It also maintains some level of job growth. People can make more money, they could spend more money, they could get taxed on more money, and the country is able to grow at the exact same time. However, this is widely talked about in the next stimulus package; it does also have its downsides.

First, any infrastructure spending or projects are probably going to take months, if not wait longer, to actually materialize, so anything we start today is likely going to take a very long time until we could see the benefit. Really, at a time where people need help today, this would not do a lot immediately. And why the feeling some sort of infrastructure spending is going to be included in the next stimulus deal, but I don't expect it to be the main focus right now.

Instead, I would expect to see the main focus being unemployment, another stimulus check, and some sort of tax incentive or tax break squeezed in there somewhere. Then the infrastructure spending is going to provide more stability down the road—get it, pun intended?

Lastly, as far as a timeline as to when all of this can happen, here's what we're looking at right now. The Senate is on what's known as a recess from July 3rd to July 17th, where they're not gonna be in Washington DC actively negotiating these plans. Even though a lot of people think this is them just going on a vacation and relaxing by the beach somewhere, just getting a tan and driving sports cars around and just having fun and relaxing, the reality is that this is a time for them to go back to their district to study the legislation and to raise funds.

But that also leaves us with the reality that really nothing is going to happen on this until they return back to Washington DC on July 18th. From there, it's probably gonna be a really quick turnaround to get something approved by the end of July, and that would also mean things can begin progressing forward shortly after that.

So really, for another month, we're gonna be hearing a lot more news and speculation about who said what or what that might mean, but realistically nothing is going to happen until the end of July and we just have to wait and see what happens.

Let me know what you think of all of these proposals down below in the comments. Like I said, I read pretty much all of the comments, so if you like something or you disagree with it or you want to give your own opinion, just let me know down below in the comments. Personally, I'm pretty optimistic that something is going to be passed and I have a feeling it's going to include increased unemployment benefits for a little bit longer.

Another round of stimulus checks I think is the most likely outcome of this. Potentially, I think we might see some sort of tax cut just slipped in there somewhere, but again, just my opinion, just what I believe—not financial advice for entertainment purposes only. If you smash the like button, $52 in them!

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