COVID-19

Nearly one-third of US adults expect to lose employment income: Census Bureau

Nearly one-third of US adults expect to lose employment income: Census Bureau

As Congress continues to argue over the terms of a proposed COVID-19 economic relief package, Americans are increasingly pessimistic about their financial futures.

According to survey results released December 2nd by the Census Bureau, one in three adults are anticipating a significant employment change for one of their household members, with 31 percent of those participating in the bureau’s Household Pulse Survey saying that someone in their home was likely to either have their hours or pay cut or to lose their job entirely. The survey was conducted between November 11th and 23rd.  Eviction or foreclosure is expected by  33.2 percent of respondents, while a startling 34.5 percent reported that they’d struggled to afford their most basic needs. Worst of all, about 12 percent reported that in the week leading to the survey they hadn’t had enough to eat.

The financial pain reported by the survey is accompanying the third wave of the coronavirus crisis, and is exacerbated by continuing death and illness. Record numbers of Americans are being hospitalized and succumbing to the virus, creating enormous stress on the nation’s healthcare system. It is hard to see how the nation will recover any time soon especially with business closures and restrictions continuing or being reintroduced following the initial wave of the virus last March. The more people are being sickened, the fewer people are going out and spending money.

In response, Congress has been working hard to find an economic relief package that satisfies both Democrats and Republicans.  A middle ground had evaded leaders until this week, as Democratic leaders Nancy Pelosi (D-California) and Charles Schumer (D-New York) preferred a $908 billion bipartisan plan after a more ambitious $3 trillion offer was rejected, and Republican leader Mitch McConnell (R-Kentucky) rejected the $900 billion offer and expressed support for a $500 billion plan that the Democrats said was insufficient.

Finally, after months of political bickering, Congress has reached an agreement on an emergency coronavirus relief bill and the President has said he would sign it. Although not all the details are fully available yet, here are some of the provisions affecting taxpayers and small business owners:

  • Stimulus payments
  • Unemployment assistance
  • Rental assistance
  • Eviction moratorium
  • PPP loans & small business support
  • Earned Income Tax Credit & Child Tax Credit
  • School funding
  • Child care
  • Transportation

For a full breakdown of all the terms of this new agreement, read our recent blog post here.

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Steward Financial

Steward Financial

Jon Osborn is a tax preparer based in San Dimas, California. His company, Steward Financial Services, offers a broad range of tax preparation, accounting and business consulting for small businesses. He loves to work with clients who are looking for answers to complex tax and business planning issues. He has owned several small businesses and worked with over one hundred small business owners. He helps his individual and business tax clients find the best ways to spend their money in order to minimize IRS tax. Small businesses looking to grow, sell or just increase cash flow are one of Jon's specialties.

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