Congress Passes Key Step for COVID-19 Relief THE PULSE: At about 5:30 early Friday morning, the Senate voted along party lines to adopt a budget resolution allowing for the fast track of President Biden’s COVID-19 relief plan. Vice President Kamala Harris passed the tie-breaking vote. Later in the day, the House voted 219-209 to approve the measure. The resolution makes it possible to move the COVID-19 relief bill through the Senate with a simple majority and avoid a potential filibuster through the process of budget reconciliation. Senate Republicans expressed disappointment that the administration is choosing a partisan approach to the $1.9 trillion relief bill instead of adopting something closer to their $600 billion counteroffer presented to the president last week. The president believes that the Republican offer is not bold enough and that the economy requires a considerable stimulus to avoid stagnation. The administration appears willing to accept one point of the Republican’s proposal, which would target the $1,400 stimulus checks to middle- and low-income families and phase out payments for higher earners. A bipartisan amendment calling for a more targeted stimulus passed the upper chamber 99-1. Biden’s bill also calls for enhanced child tax credits for the upcoming year. Democratic leaders in Congress have drafted legislation that would provide par-
150 / THE MONSEY VIEW / February 10, 2021 www.themonseyview.com / 845.600.8484
ents with fully refundable tax credits of $3,600 per child for children under the age of 6 and $3,000 for children ages 6 through 17. The payments will be available in monthly installments beginning in July of this year. Republican Senator Mitt Romney introduced an alternative plan to provide permanent monthly child payments to parents. Romney’s bill is revenue-neutral as it eliminates other government expenditures. THE IMPACT: The lackluster January jobs report released last Friday provided the president with additional ammunition to make the case that the economy needs the extra stimulus. Treasury Secretary Janet Yellen said that she believed that the U.S. could return to full employment by the end of next year if Biden’s $1.9 trillion stimulus is passed. Yellen cited an analysis from the Congressional Budget Office that without a stimulus package, full employment would not return until 2025. Former Clinton Treasury Secretary Larry Summers penned an op-ed in The Washington Post where he argued that a large stimulus is necessary but that the Biden plan is too large. He expressed concern that Biden’s plan might inadvertently trigger inflationary pressures on the U.S. economy and that Biden would use up precious political capital best saved for passing his Build Back Better infrastructure plan. Yellin countered that Summer’s concerns were small compared to the risks of doing too little and that the U.S. has tools to deal with inflation should it arise.