There could be another round of economic impact payments, and one idea being floated by the White House is a coronavirus stimulus Social Security loan of up to $5,000 that would delay retirement benefits by three months.
The Trump administration is reportedly considering new ways to inject more stimulus into an economy that has been rocked by a sweeping lockdown due to the novel coronavirus pandemic, according to The Washington Post.
The plan, submitted by two conservative scholars, would give Americans the option of a coronavirus stimulus Social Security advance, and their first three checks after leaving the workforce would go toward repaying the loan.
The coronavirus stimulus Social Security loan would be structured with a government-set interest rate, so it would not affect the program’s trusts that are already in danger of becoming insolvent by 2035.
The economy is struggling as states increase efforts to open up certain businesses after the lockdown, but senior officials in the White House are reportedly growing more worried over the rampant spending to curb the economic effects of the virus.
A staggering $2.4 trillion has already been committed to fighting the effects of the coronavirus through four different relief bills.
National Economic Council Director Larry Kudlow told ABC’s “This Week with George Stephanopoulos” that while conversations concerning further stimulus efforts will continue, it may be best to cool it for a bit.
“I think that many people would like to just pause for a moment and take a look at the economic impact of this massive assistance program, which is the greatest in United States history,” Kudlow said Sunday.
Coronavirus Stimulus Social Security Loan is ‘Politically Impossible’
While crafting a plan that involves a coronavirus stimulus Social Security loan like this could help some individuals, does it actually have any chance of becoming a reality?
Banyan Hill Publishing economist and tax expert Ted Bauman doesn’t think so.
“My first reaction to a proposal like this is that it’s a political nonstarter,” said Bauman, Editor of“Neither the Trump administration nor the Democrats have any political incentive to interfere with Social Security. In fact, the White House recently put out a statement saying unequivocally that there will be no alteration of Social Security or Medicare benefits while Trump is in office.”
Bauman doesn’t see any way for a plan like this to succeed and even called the concept “one step up from dorm room theorizing.”
“Sure, you can do the math to assure that something like this is possible, but if it’s politically impossible, why bother?” he explained.
There’s no telling if another coronavirus stimulus effort will come to fruition any time soon as America slowly reopens, but using Social Security to achieve it is most likely not high on the list.
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