Cutting off stimulus checks to Americans earning over $75,000 could be wise, new data suggests

Biden is debating another round of $1,400 stimulus payments. Some in Congress have urged the president to target aid to lower-income families only


Jan. 26, 2021

As President Biden pushes for another round of stimulus payments for most Americans, calls are escalating to target the aid solely to low- and moderate-income families, and new data suggests that would provide the most needed and effective boost for the economy.

Families earning under about $75,000 typically spend the money quickly, according to a new analysis of how Americans are using the $600 economic impact payments this month by Opportunity Insights, a nonprofit research organization. Families earning above that threshold typically save the stimulus payment, which provides little help to the overall economy and signals the money was not as urgently needed.

Lawmakers from both parties lobbied the White House over the weekend for a less costly relief package that would only send stimulus payments to the most needy. Under Biden’s proposal, the vast majority of U.S. households would receive $1,400 payments.

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