The Senate will soon begin discussion on the $1.9 trillion COVID-19 relief package proposed by the White House. We have seen finally some of the breakdown of where the money is going but I’m convinced that the appropriations committees in the House do not know how to count. We found out on March 2, 2021, that over $1 trillion out of the $2.9 trillion approved in 2020 has not yet been spent. Even though it hasn’t been spent, they want another $1.9 trillion. I want to look at one particular provision where the numbers are crazy, Congress has appropriated $412 billion for the expense of the $1,400 payment.
From a math standpoint we have two quantities $412 billion and $1400, all we have to do please divide one into the other and it will tell us how many people will receive the $1,400 checks. One more fact the population of the United States is approximately 327,000,000 people and out of that approximately 75,000,000 are under the age of 17.
So, let’s see what our formula delivers if we divide $412 billion by $1,400, we find out that the number of $1,400 units is 294,285,714. If we have 327 million people and of that 75 million are under the age of 17, then we simply subtract 75 million from 327 million we arrive at a number of 252 million people who would be eligible for the $1,400 unit. I know the math is correct so that would mean there’re 42 million people in excess.
The House Ways and Means Committee reported that 159 million stimulus checks from the CARES COVID-19 relief act had been sent out but indicated there were still 35 million checks or $42 billion at that time had not been paid out. It would seem based on the numbers there’s a lot of money sloshing around in Washington apparently not getting out to the people who needed it. It is too early to tell how much of the $900 billion signed into law in December 2020 has not been sent out.
I have pointed out in several commentaries that the $1,400 will do much for people who are at the poverty level. The poverty level is about $25,000 a year or just over $2,000 a month. The $1,400 would be 75% of the monthly expenditures for poor people. The politicians in Washington don’t seem to understand that the $1,400 check will cover about three weeks of expenses, and then what do they do? Will there be another stimulus program and one after that one after that? I handful of Democrats have come up with a solution to that problem.
Here is the latest path to bankruptcy for the nation. Some Democrats want to increase the payment from a one-time $1,400 to $2,000 per month per person over 16 in a household for as long as we have the Corona Virus. Rich Smith of the Motley Fool suggests that if the pandemic runs for 12 months, those payment would exceed $8 trillion. The payment would go to the 20 plus million illegals in the country and all children over the age of 16.
Do you know under this bill, if passed, a family of 4 could get $96,000 a year? This would not exclude other support payments. Here is a scary thought, a 16-year-old teenager getting $24,000 a year. One could ask why anyone in a family would work if you get almost $100,000 for not working at all. Two other points under proposed legislations, first-year income all the income will be taxable. I think the government should charge a flat tax rate of 24% for all recipients before the checks are sent out generating almost $2 trillion in tax revenue, The second issue is what happens if the money stops because the economy starts to have positive GDP, how do you go from $100,000 a year to zero?
I’m afraid that even if the economy starts recovering it will be difficult to stop paying out the money. Don’t be surprised that if it passes, the next step will be to a guaranteed monthly income of at least $1,000 to everyone who got the $2,000 per month. If that were to happen the cost will drop to $4 trillion a year.
Elizabeth Warren just introduced her new asset tax If you have a net worth over $50 million you will pay an asset tax of 2% on everything you own. If you are fortunate enough to have over $1 billion you will pay 2% on everything over $50 million to $1 Billion and then 3% on everything above that and you pay that every year.
There is talk in the Biden administration of moving the top estate tax rate to as high a 70% all of this is designed to produce a massive wealth transfer from the individual to the central government.
What can you do to stop this insanity? Write to your Congressman and Senator and tell him or her you want to hear from them what is being discussed and how will they vote and why. You have to keep the pressure on the elected officials and you have to make them that you are holding them accountable. The time has passed that the elected officials can do what they want — they will do what we want.
Dan Perkins is a published author of 4 novels on nuclear and biological terrorism against the United States and is a current events commentator for over 25+ news blogs. He recently has had commentaries posted on Medium, Conservative Truth, and Newsmax among others. He appears on radio and TV regularly many times a month. Dan’s newest show is called “America’s Cannabis Conversation,” on the W420radionetwork.com. His latest entrance in communications is his first Podcast called “What’s on My Mind?” This can be heard on SoundCloud; just look for the name of the show or Dan Perkins. More information on Perkins can be found on his web site: danperkins.guru