(NBC) – The plan unveiled Thursday night by Senate Republicans to provide direct cash assistance to help Americans hurt by the coronavirus pandemic would send checks of up to $1,200 per person in a one-time payment — and payments would be based on income.
Under the plan, the details of which were revealed on the Senate floor by Majority Leader Mitch McConnell, R-Ky., individuals making up to $75,000 annually would be eligible for a $1,200 check from the federal government.
The cash would be delivered in a one-time payment. President Donald Trump and Secretary of the Treasury Steven Mnuchin had in recent days pushed for Americans to get two payments.
Married couples who file their taxes jointly would have to make less than $150,000 to qualify for their payment, which would be $2,400.
From there, according to McConnell’s proposal, the payments would decrease. For individuals, the sum of the payment would fall by $5 for each $100 earned over $75,000.
The payment would phase out entirely for individuals making more than $99,000 annually, meaning people who make more than that would not get any money from the government, according to the proposal.
For married couples earning more than $150,000, the payment would also decline gradually, and it would phase out completely for couples making more than $198,000, according to the plan.
The checks, however, would reduce to $600 (or $1,200 for married couples) for taxpayers who have little or no income tax liability but have at least $2,500 in qualifying income, according to a GOP summary of the plan.
Individuals and couples with children would be eligible for an additional $500 per each child they have.
“These recommendations would blunt the impact for most Americans and limit the damage to the U.S. economy,” Senate Finance Committee Chairman Chuck Grassley, R-Iowa, said in a statement. “These recommendations won’t be the end of the congressional response to the coronavirus.”
The income levels the government would review to make the cash payout determinations would be based on 2018 tax returns, McConnell said.
The direct cash payment proposal is part of a broader stimulus package to combat the economic effects of the coronavirus pandemic.