The introduction of Coronavirus, now often called COVID-19, has impacted our nation and the entire world in ways that most of us could never have imagined. Children are unable to return to their schools, people are out of work, and health care professionals do not have enough masks and other equipment to address the growing needs of our nation. Most people are choosing to or legally required to shelter-in-place, i.e. stay within their homes, to stop the spread of the virus so we can begin to return to our normal way of life as soon as possible.
In response to these grave impacts, the United States government is responding quickly to help citizens make it through these uncertain times. On this past Friday, Trump signed the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) into law.
Stimulus Is Coming.
The bill includes one-time stimulus checks payable to taxpayers based on our 2019 tax returns (or our 2018 tax returns for those who have not filed for 2019 yet). The payments will be in the amount of $1,200 for individuals with an income of up to $75,000, or $2,400 for married couples who filed jointly and earned up to $150,000. There is an additional $500 payment for each child claimed on the most recent tax return.
For those who earn more than the amounts listed above, you might still qualify for a payment in a lesser amount. Use this calculator to estimate your stimulus payment.
Keep in mind that there are various factors involved in the calculation, including past-due child support payments, so your stimulus payment may be different.
In addition to these direct payments, there are other benefits intended to help protect our short-term financial stability. For instance, federal student loan payments will be temporarily suspended, unemployment benefits will be larger, small businesses may be eligible for grants, a program will be established for payments to freelancers who do not qualify for unemployment, relief will be available for small business loans, tax credits will help businesses keep workers on their payroll, and more. The price tag on this stimulus package is a whopping $2 trillion, which is the largest rescue package in American history.
Well, that was quick.
In early March, Coronavirus first became widely recognized for its potential to be a significant problem in the United States. Now, before the end of the March, an emergency stimulus bill has already been signed into law and efforts are underway to distribute funds to people who have been or expect to be financially impacted. Despite the delays in passing the bill due to bipartisan negotiations, our government found a way to enable the distribution of funds that, as of last month, would have been impossible for us to afford.
So where did the money come from?
The funds for the current stimulus package are actually advances from our tax credits for 2020, which would not typically be available until we file our 2020 income taxes early next year. This is an example of how the government can find creative ways to fund initiatives that it deems important.
But, what about reparations?
The goal of reparations is to restore African Americans to the level of prosperity that we would have if liberties had not been taken away from our ancestors. This is intended to be a step to help make amends for the atrocities of slavery and the treatment that African Americans faced in this country following slavery. Though most politicians admit that slavery was a horrible time in our history, this does not translate into a willingness to compensate those of us who still feel the impacts of our unjust system today.
The cost of reparations has been calculated in different ways over the years. For instance, a Yale Law professor determined the cost would be $34 billion per year if calculated based on the difference between the per capita income levels for white families versus black families – and that was back in 1973! Today, given the rate of inflation, population changes, and income adjustments, that number could easily exceed $200 billion dollars per year.
However, this does not include the cost of job training, access to health care, criminal justice reform, and public works that are needed to help level the playing field on an ongoing basis. In 2015, a researcher found that reparations could cost between $5.9 and $14.2 trillion to make meaningful progress toward retribution for African Americans. More recently, estimates are closer to $17 trillion and even up to $51 trillion, and counting.
Regardless of the calculation method, we can all agree that the price tag for reparations will be hefty. Many have said the cost is simply too high because the United States does not have a few trillion dollars to spend. But this argument fails, as our government just demonstrated with the current stimulus package that, when motivated, it can come up with trillions of dollars in a remarkably short period of time.
Yet over 150 years after slavery ended, Congress has not felt that same level of urgency as related to reparations.
What does this all mean?
The U.S. government has worked quickly and efficiently to respond to the coronavirus pandemic, and the benefits of this are clear. However, this also demonstrates the ability of our government to work together to find creative and effective solutions to social and financial problems. It shows us that our government has the knowledge, skills, and abilities to establish eligibility criteria and issue reparation payments to African Americans – if and when they decide to find a way to afford it. Considering the way our government quickly enacted the CARES Act, the reluctance to issue reparations does not appear to be solely based on financial concerns.
This topic will undoubtedly garner attention in the coming years, as African Americans continue to fight for justice. In the meantime, let’s stay safe and healthy in order to protect our community.
