Joe Manchin has come out strongly against $2,000 stimulus checks.💸💸💸
A quick thread on what this means ...
With the wins by Warnock and Ossoff earlier this week, and combined with independents who caucus with them, Dems will control 50 of the 100 seats.
And...
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in the event of a tie, the VP (who's also the President of the Senate) casts the deciding vote, effectively giving Dems control of the Senate.
Notably, though, Manchin IS a Democrat.
Thus, if Ds lose Manchin and Rs hold party line, they can't pass a bill increasing the...
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stimulus checks to $2k/person.
What makes this whole thing really interesting, and somewhat unique - at least lately - it that there are a bunch of R Senators that largely support the $2k stimulus checks (which notably were supported by Pres. Trump).
But those Rs are...
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also very much opposed to other Dem COVID-related relief priorities, such as additional funding for states.
So, Manchin's decision to come out now, forcefully against the $2k checks, may put Schumer is a tough spot right out of the gate as Majority Leader.
Option 1 is to...
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bring a 'clean' bill with only the $2k checks to the floor. If he does so, there are likely enough Rs who'd vote for the bill to 'override' Manchin's departure from party lines.
But that also makes getting other priorities through much more challenging.
On the other hand...
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Schumer could try to tuck the $2k checks into a larger bill that includes some of the other things Dems want (e.g., more help for the states). But if Rs look at any of those things as a "poison pill" (the ways Ds did with corporate COVID immunity), AND Manchin sticks to...
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his current position, it could mean he doesn't get anything done at all... including the $2k checks.
That would likely be viewed as a pretty big setback out of the gate.
Which is why Manchin's announcement is so significant.
Have to wait to see how Schumer proceeds, but...
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2 things do seem pretty clear.
1) As many have already suggested, Manchin's going to be one of the most powerful people in DC for at least the next 2 years.
2) The likelihood of increasing stimulus checks to $2k is not nearly as high today as it was yesterday.
End👊
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In light of GA's election results, and what's likely a flipping of the Senate, a quick thread recapping some key provisions of the Biden Tax Plan...
(No GIFs. Proposals don't get those)
On the income tax side, the Biden tax plan sets a clear, bright-line mark at $400k...
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If you're below that, you'd be pretty 'safe' from seeing your tax rate(s) increase under his plan.
For those w/ income of $400k or more, he proposed returning the top rate to 39.6% (though whether this is for single filers, joint filers, or both, was never made clear)...
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Biden also proposes eliminating the QBI deduction for anyone with income more than $400k (today, non-specified service biz owners may be able to continue to benefit from the deduction if they have sufficient wages or property).
But before we dive into the bill, a quick note from my soap box… This whole process is absurd. They JUST released a 5k+ page bill, and they are going to vote on it TODAY.
They aren't even pretending to have time to read what they're voting on anymore.
*Steps off soap box*
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Ok... on to the meat. Let's start by answering the question that so many are already asking... “Will I be getting another #stimulus check?”
The answer, like last time, is “Maybe.”
Notably, the maximum stimulus amount per person this time around is $600.
Lots to digest in the R's latest stimulus proposal. Here are just a few of the more interesting tidbits w/ respect to the #PPP program (including a proposed PPP2):
(Note: Just a PROPOSAL at this point. Rs + Ds still need agreement before anything will get passed.
1) More...
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expenses will be eligible uses for PPP proceeds (and eligible for forgiveness), including PPE and other expenses incurred to comply w/ COVID safety guidelines.
2) Borrower could choose covered period of their choice between 8 weeks and 12/31/20. I see this primarily as a...
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way to allow biz owners to exhaust PPP funds, and then immediately furlough, terminate, etc. employees w/out impacting their forgiveness formula.
3) Loans under $150k (OVERWHELMING MAJORITY) would be automatically forgiven w/ borrower self-certification.
Notice 2020-51 solves ALL the problems that people may have run into when trying to roll back unwanted 2020 'RMDs'.
First of all, the 60-Day window rollover window is extended to the later of 60-days after a distribution was received, or August 31st.✅
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Next issue... the once-per-year rollover issue. Well, apparently, that's no longer an issue either. Notice 2020-51 says that the IRS will not count the rollover as a rollover for purposes of the once-per-year rollover rule.
To be clear, there is ABSOLUTELY NO LEGAL BASIS...
Quick note that both items addressed in this Notice related to relief provided to retirement savers under Section 2202 of the CARES Act (Full text: govtrack.us/congress/bills…)
OK, now let's get to the Notice. I quickly glanced and see it answers at least SEVERAL open Qs...
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First big news from the Notice is an expansion of how an individual can qualify to be eligible for a Coronavirus-Related Distribution.
CARES Act explicitly defined a variety of ways an individual can become eligible for such a distribution... (see kitces.com/blog/corona-vi…)
Alrighty then... Kids are asleep, and dinner is done. So time to breakdown Congress's latest 'gift' to small business owners, and the tax and financial planning community.
Now unless you've been sleeping under a rock for the past 68 days (yes, that's the exact number of days it's been since the CARES Act was passed... though it feels more like 84 years to many of us), you've heard about the #PPP program and probably know the basics. But...