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White House Wants Congress to Send Checks to Americans as Part of Coronavirus Relief Package

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3 years ago

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  • The Trump Administration clarified details surrounding an $850 billion stimulus package that it wants Congress to pass.
  • Namely, it is asking the Senate to propose legislation that would “[send] checks to Americans immediately.”
  • Several other lawmakers on both sides of the aisle have suggested implementing emergency universal basic income measures.
  • The news comes as the House sends another bill to the Senate, this bill focusing on paid sick leave.

$850 Billion Trump Administration Bill

In a move shifting away from a push for payroll tax cuts, President Donald Trump announced Tuesday morning that he is asking Congress to immediately send checks to Americans.

The request is part of an $850 billion stimulus package the Administration is proposing. 

“We’re looking at sending checks to Americans immediately,” Treasury Secretary Steven Mnuchin said at a White House briefing. “And what we’ve heard from hardworking Americans, many companies have now shut down, whether it’s bars or restaurants. Americans need cash now and the president wants to get cash now. And I mean, now, in the next two weeks.”

In the briefing, Trump said he is choosing check over payroll tax cuts because those cuts would take several weeks to implement.

According to two White House officials, Trump’s plan would contain around $50 billion directed at the airline industry and more assistance for small businesses and their employees.

Mnuchin was expected to meet with Senate Republicans around lunch on Tuesday to present the specific details of the bill. 

Is the United States in a Recession?

The Trump Administration hopes the bill will curtail massive free falls in the stock market. On Monday, the Dow Jones plunged 3,000 points before slightly recovering, and Tuesday morning it fell below 20,000 points. 

Last week, Trump said the U.S. isn’t in a financial crisis. On Monday, after a reporter asked him if the U.S. is headed for a recession, he said, “We may be.”

Also, Tuesday morning, a chief economist for Morgan Stanley said, “Global recession in 2020 is now our base case. With Covid-19 spreading in Europe and the US after hitting Asia, the disruptions and dislocations in the economy and markets will trigger a [year over year] contraction in global growth in [the first half of 2020].”

In fact, the UCLA Anderson Forecast is already saying that the U.S. is now in a recession that will likely last until the end of September.

Emergency Universal Basic Income

The prospect of sending cash to Americans has been floated among several lawmakers in recent days, including Republicans Senators Mitt Romney and Tom Cotton. Both have voiced their support for such a move, calling on Congress to send checks to low-income and middle-class Americans.

Romney’s plan would be a one-time injection of $1,000 to Americans, while Cotton said he wants a monthly plan. According to Cotton, that would look something like giving $4,000 a month to a family of four, $1,000 if you’re a single adult, either through unemployment insurance or through a tax rebate.

Cotton said he’s proposing this because a bill in the House that’s now sitting in the Senate does not go far enough to provide economic relief.

“There are too many gaps in coverage for the smallest businesses and for medium-sized businesses, and I and a lot of other senators who I’ve spoken to over the weekend are worried that we’re not doing enough to get cash into the hands of affected workers and families quickly,” Cotton said.

The ideas the Trump Administration, Romney, and Cotton are proposing would be different forms of an emergency universal basic income. 

Andrew Yang, a previous Democratic presidential candidate who was known for his support of universal basic income, said of the idea, “I’m pumped about it actually.” 

On Friday, another Democrat, Representative Tusli Gabbard introduced a similar UBI measure in the House.

“An emergency Universal Basic Payment of $1,000 per month available to all Americans until the Department of Health and Human Services declares that the COVID–19 outbreak no longer presents a public health emergency,” she said in her proposal.

Some Democrats Have Different Ideas for a Relief Bill

So far, not everyone is on board. Senate Minority Leader Chuck Schumer is expected to outline a Democratic proposal today as well. 

Notably, that bill would cost $750 billion.

It’s expected to expand unemployment insurance, provide money for schools, public transportation, expand Medicaid funding, expand more investments in health care, provide loan assistance, and halt evictions and foreclosures. Like Mnuchin, Schumer was also expected to present specific details about his plan Tuesday.

Democrats like Schumer are pushing for provisions like this because they say that tax cuts aren’t going to help people who’ve already lost their jobs because of the coronavirus.

Senate to Take Up House Bill

The Senate is expected to make a vote as soon as Tuesday regarding a bill that passed through the House on Monday. It will provide paid sick leave, free testing, boosted unemployment insurance, and food programs for children, the elderly, and U.S. territories like Puerto Rico.

Asked by CNN what the Senate will do when it hold the vote, Majority Leader Mitch McConnell said, “Pass it.” 

“I think [Mnuchin’s] preference is we pass the House bill and move quickly to pass the third Coronavirus bill that deals with some of these issues about creating a mechanism to return money, to get liquidity into the hands of small businesses. I think they’d like to go big,” Senator Marco Rubio said Tuesday.

The House bill faced a potential snag Monday when Texas Rep. Louie Gohmert threatened to stall that process, but he later backed off. 

See what others are saying: (Washington Post) (The New York Times) (ABC News)

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Survey and Census Data Shows Record Number of Americans are Struggling Financially

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2 weeks ago

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May 23, 2023

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Americans are choosing not to pursue medical treatment more and more frequently as they encounter money troubles.

A recent federal survey shows that a record number of Americans were worse off financially in 2022 than a year prior.

Coupled with recent census data showing pervasive poverty across much of the country, Americans are forced to make difficult decisions, like foregoing expensive healthcare. 

According to a recent Federal Reserve Bureau survey, 35% of adults say they were worse off in 2022 than 2021, which is the highest share ever recorded since the question was raised in 2014. 

Additionally, half of adults reported their budget was majorly affected by rising prices across the country, and that number is even higher among minority communities and parents living with their children.

According to recent census data, more than 10% of the counties in the U.S. are experiencing persistent poverty, meaning the area has had a poverty rate of 20% or higher between 1989 and 2019. 

16 states report at least 10% of their population living in persistent poverty. But most of the suffering counties were found in the South — which accounts for over half the people living in persistent poverty, despite making up less than 40% of the population. 

These financial realities have placed many Americans in the unfortunate situation of choosing between medical treatment and survival. The Federal Reserve study found that the share of Americans who skipped medical treatment because of the cost has drastically increased since 2020. 

The reflection of this can be found in the overall health of households in different income brackets. 75% of households with an income of $25,000 or less report being in good health – compared to the 91% of households with $100,000 or more income. 

See what others are saying: (Axios) (The Hill) (Federal Reserve)

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Montana Governor Signs TikTok Ban

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3 weeks ago

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May 18, 2023

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The ban will likely face legal challenges before it is officially enacted next year. 

First Statewide Ban of TikTok

Montana became the first state to ban TikTok on Wednesday after Gov. Greg Gianforte (R) signed legislation aimed at protecting “Montanans’ personal and private data from the Chinese Communist Party.”

The ban will go into effect on Jan. 1, 2024, though the law will likely face a handful of legal challenges before that date. 

Under the law, citizens of the state will not be held liable for using the app, but companies that offer the app on their platforms, like Apple and Google, will face a $10,000 fine per day of violations. TikTok would also be subject to the hefty daily fine. 

Questions remain about how tech companies will practically enforce this law. During a hearing earlier this year, a representative from TechNet said that these platforms don’t have the ability to “geofence” apps by state.

Roger Entner, an analyst at Recon Analytics, told the Associated Press that app stores could have the capability to enforce the restriction, but it would be difficult to carry out and there would be a variety of loopholes by tools like VPNs.

Montana’s law comes as U.S. politicians have taken aim at TikTok over its alleged ties to the CCP. Earlier this year, the White House directed federal agencies to remove TikTok from government devices. Conservatives, in particular, have been increasingly working to restrict the app.

“The Chinese Communist Party using TikTok to spy on Americans, violate their privacy, and collect their personal, private, and sensitive information is well-documented,” Gov. Gianforte said in a Wednesday statement. 

Criticism of Montana Law

TikTok, however, has repeatedly denied that it gives user data to the government. The company released a statement claiming Montana’s law “infringes on the First Amendment rights of the people” in the state. 

“We want to reassure Montanans that they can continue using TikTok to express themselves, earn a living, and find community as we continue working to defend the rights of our users inside and outside of Montana,” the company said. 

The American Civil Liberties Union condemned Montana’s law for similar reasons. 

“This law tramples on our free speech rights under the guise of national security and lays the groundwork for excessive government control over the internet,” the ACLU tweeted. “Elected officials do not have the right to selectively censor entire social media apps based on their country of origin.”

Per the AP, there are 200,000 TikTok users in Montana, and another 6,000 businesses use the platform as well. Lawsuits are expected to be filed against the law in the near future.

See what others are saying: (Associated Press) (Fast Company) (CBS News)

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How a Disney-Loving Former Youth Pastor Landed on The FBI’s “Most Wanted” List

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1 month ago

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April 24, 2023

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 “Do what is best, not for yourself, for once. Think about everyone else,” Chris Burns’ 19-year-old son pleaded to his father via The Daily Beast. 

Multi-Million Dollar Scheme 

Former youth pastor turned financial advisor Chris Burns remains at large since going on the run in September of 2020 to avoid a Securities Exchange Commission investigation into his businesses.

Despite his fugitive status, the Justice Department recently indicted Burns with several more charges on top of the $12 million default judgment he received from the SEC. 

Burns allegedly sold false promissory notes to investors across Georgia, North Carolina, and Florida. The SEC claims he told the investors they were participating in a “peer to peer” lending program where businesses that needed capital would borrow money and then repay it with interest as high as 20%. Burns allegedly also reassured investors that the businesses had collateral so the investment was low-risk. 

The SEC says that Burns instead took that money for personal use. 

Burns’ History 

Burns began his adult life as a youth pastor back in 2007 before transitioning into financial planning a few years later.  By 2017, he launched his own radio show, The Chris Burns Show, which was funded by one of his companies, Dynamic Money – where every week Burns would “unpack how this week’s headlines practically impact your life, wallet, and future,” according to the description. He also frequently appeared on television and online, talking about finances and politics. 

The SEC alleges that he used his public appearances to elevate his status as a financial advisor and maximize his reach to investors.

His family told The Daily Beast that he became obsessed with success and he reportedly bought hand-made clothes, a million-dollar lakehouse, a boat, several cars, and took his family on several trips to Disney World. His eldest son and wife said that Burns was paying thousands of dollars a day for VIP tours and once paid for the neighbors to come along. 

Then in September 2020, he reportedly told his wife that he was being investigated by the Securities Exchange Commission but he told her not to worry. 

The day that he was supposed to turn over his business documents to the SEC, he disappeared, telling his wife he was just going to take a trip to North Carolina to tell his parents about the investigation. Then, the car was found abandoned in a parking lot with several cashier’s checks totaling $78,000

FBI’s Most Wanted

The default judgment in the SEC complaint orders Burns, if he’s ever found, to pay $12 million to his victims, as well as over $650,000 in a civil penalty. Additionally, a federal criminal complaint charged him with mail fraud. Burns is currently on the FBI’s Most Wanted list. 

Last week, the Justice Department indicted him on several other charges including 10 counts of wire fraud and two counts of mail fraud. 

“Burns is charged for allegedly stealing millions of dollars from clients in an illegal investment fraud scheme,” Keri Farley, Special Agent in Charge of FBI Atlanta, said in a statement to The Daily Beast. “Financial crimes of this nature can cause significant disruptions to the lives of those who are victimized, and the FBI is dedicated to holding these criminals accountable.”

His family maintains that they knew nothing of Burns’ schemes. His wife reportedly returned over $300,000 that he had given to her. 

She and their eldest son, who is now 19, told The Daily Beast they just want Burns to turn himself in, take responsibility for his actions, and try to help the people he hurt. 

“Do what is best, not for yourself, for once. Think about everyone else,” Burns’ son said in a message to his father via The Daily Beast. 

See what others are saying: (The Daily Beast) (Fox 5) (Wealth Management)

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