Tax Credit Proposals Will Give Every Parent $250 or More

2/23/2021

861,000

The number of Americans filing new claims for state unemployment benefits rose to a seasonally adjusted 861,000 in the week ending February 13 — remained above the pre-pandemic peak, the Labor Department reported. The number was an increase of 13,000 from the previous week’s revised level and also shows that Americans are still losing their jobs amid the COVID pandemic. Meanwhile, continuing claims, which track the aggregate total of Americans applied for unemployment benefits stood at 4.5 million, a drop of 64,000. Furthermore, for the week ending February 13, 50 states reported 516,299 workers applied for PUA (Pandemic Unemployment Assistance), a program for the self-employed and gig workers, the report shows.

20

The SBA announced that small businesses will get a special 2-week application window to apply for PPP loans. Businesses with fewer than 20 employees will be able to apply for Paycheck Protection Program (PPP) loans. These loans are much needed for small companies to stay opened and to keep their workforce employed during the ongoing pandemic, said Mr. Biden. The SBA says self-employed workers and independent contractors will now also be eligible for loans. Administration officials have declared that PPP applicants can apply from 9 a.m. Eastern Time on Wednesday till 5 p.m. ET on March 9. The program will also set aside $1 billion for businesses with no employees, who are located in low- and moderate-income communities, according to the WSJ report.

$250

President Joe Biden announced a new coronavirus relief package that could help lift millions of kids out of poverty. The president says he wants to expand the federal child tax credit that could give families a bonus income every month for a year. Tax credit proposals will give every parent $250 or more in a month. Parents with children up to 0 to 5 would receive $350 per month, or $4,200 a year while parents with children up to 6 to 17 would get $250 per month, or $3,000 a year. The new relief package is due to reduce child poverty which is more in the U.S compared to the other countries, according to The New York Times.

5.3%

The U.S. Census Bureau reported that U.S retail sales grew 5.3% in January — up 7.4% from last year and beating economists’ expectations. The figure marked the first increase since September and all major categories saw double-digit gains in the month. The report shows that sales were increases at department stores (23.5%), electronics and appliance stores (14.7%), furniture and home furnishings stores (12%), department stores (23.5%), clothing and accessory stores (5.0%), and sales at restaurants and bars grew 6.9%. The growth is driven by consumers continuing to shop online due to the ongoing pandemic. Online sales grew another 11% in January, the report shows.

14.9%

U.S. home prices were filled by the lowest mortgage rates compared to the past. This has been increased as the fastest pace on record which has been expanded the peak from the last property boom in 2005. The median price of a single-family home increased 14.9% to $315,000 in the Q4 of 2020 — marked the biggest growth on record, with data going back to 1990. The Northeast guided the way with a 21% profit as consumers immediately went to the suburbs. Towns including Fairfield County, Connecticut, home to Greenwich and other small towns have increased up to 39% for the biggest surge in the U.S.

76.2

U.S consumer confidence index fell to 76.2 in February, down from 79.0 in January. The figure is the lowest since August, and far less than the 101.0 in February 2020. Richard Curtin, the survey’s chief economist has said that the entire loss in consumer sentiment was concentrated with the upcoming expectations for the households who are getting income under $75,000 per year. These households reported concerns with their current finances and concerns about the lack of recent income gains, according to a survey from the University of Michigan.

$60,000

According to the U.S. Department of Commerce, U.S. retail sales climbed in the month of January which has happened after three months of continuous declines. Lower-income Covid-19 aid recipients are quickly spending the money they get, the Wall Street Journal reported. In the week ending January 10 — consumers who are spending less than $60,000 in a year have triggered a high which is more than 20%. The U.S Treasury Department has started electronically sending stimulus payments like $600 per adult, $600 per child who is getting income under $75,000. The chief executive of Affinity Solutions Jonathan Silver has said that among the people who are receiving payments, 88% have spent $600.