Posted on 05/12/2020 8:24:04 AM PDT by Responsibility2nd
$5,000 Stimulus Check Loan Proposal: The Washington Post reported that senior economic officials at the White House are exploring a polarizing proposal by conservative scholars at the right-leaning American Enterprise Institute and Hoover Institution. The scholars, Andrew Biggs (a Forbes contributor) and Joshua Rauh, had published an opinion piece in The Hill outlining their plan, which would provide cash to households, but not in the form of a direct stimulus payment. Instead, the two argue that Congress should offer voluntary loan checks of up to $5,000 – the actual amount is up for debate – in exchange for a delay in receiving their Social Security benefits in retirement by up to three months.
The two describe how individuals who opted to receive the loan would have the balance carried forward at a “specified and favorable government interest rate until the time they choose to claim Social Security,” with the loan then being “repaid out of the very first Social Security checks that individuals would otherwise receive, after which their full Social Security check would be restored.” Biggs and Rauh note that those who choose not to receive a check would keep their Social Security retirement benefits and incur no delay.
~snip~
Democrats and Republicans Debate New Stimulus Checks:
~snip~
Why Is The White House Interested In This Plan?
~snip~
Does This Proposal Thread The Democrat-Republican Needle? Republicans stand to be supportive of this proposal because it would provide aid without fear of adding trillions to the national deficit. Democrats might appreciate the ability of cash-strapped Americans, including the 20 million who lost their jobs in April, to receive more money directly into their bank accounts.
But is this good public policy?
~snip~
Robbing Peter To Pay Paul?
(Excerpt) Read more at forbes.com ...
This reminds me of the options of “borrowing” against my 401(k)
As long as I pay myself back (with interest), there is no penalty. The downside of course is that my portfolio is lower by the amount I borrow, but still....
It’s my money.
Do I want it now? Or later?
im a long-game kind of guy but I understand why people want the money now..
Figure we make more investing $5k ourselves than keeping it in the lock box.
Is the $5,000 taxable, federal,state or local?
Using it as investment seed money is an interesting thought and one I hadn’t thought of.
___________________________________________
I would like my five thousand tax free as I would roll it immediately into my 401(k) and enjoy an immediate and long term rate of return increase. And pay the tax over time when I retire.
But THAT will probably not be an option.
Is the $5,000 taxable, federal,state or local?
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Yes, yes and yes.
It’s like any and all previous stimulus monies.
Well, since I could draw $2,000 a month now if I went on SS getting a $5,000 loan for three months don’t make much sense.
How would you have done with that cash in the stock market last month?
And if you get it before July 15, you could roll it in your 401(K) and deduct from your 2019 taxes . . . if you haven’t met the contribution limit.
Our $1,200 check is not taxable.
For anyone 30-35 and younger who will probably never get SS anyway, despite paying into it, it would probably make sense to take the money now, even if it is just a fraction of what they pay in.
I’m 51. It might be advantageous for younger to take now as 5,000 in 15 years will be much less in spending. But maybe if I was 40. Lol. Not sure I’d do it now. Although it’d go towards a new air conditioning that will cost close to 7 grand.
Nope nope nope nope nope.
And Hell No!
Hasn’t the gubbermint established enough scary-ass precedents for one fiscal year?
ALL of this stuff is gonna come back to bite us in the butt, big time.
I’d have already made good money if I’d invested at the bottom. As it is, I’ve already recouped a fair amount of my losses. I believe in spreading things around and keeping a cash cushion but my dollars in the bank are losing money every day.
I have zero faith that Social Security will exist by the time I qualify for it, so yes, I will be happy to sell pretend future payments for actual present money.
Yep, and I’ve paid the max for over 20 years yet it will be beyond 2035 before I can draw anything, and if continue working until I’m 68 or so I’ll have paid the max amount in for 40 + year for a “benefit” that might pay my water bill or buy a email with
I’d love to opt out
govt accrue interest?....kidding I assume...govt SPENDS...
There’s been more than enough stimulus.
Just allow normal commercial operations and let nature take its course.
The oncoming depression is now a greater threat to the health and welfare of the American people.
I was always an advocate for “flattening the curve”, but never for flattening the nation.
The survival of this nation is a higher priority than any individual or some segment of individuals.
The US lost .32% of it’s entire population in WWII, all young, fit and strong men. England lost a full 1% of the same category. Many countries of the world lost far more.
And if this country goes down, which it will if we do not return to work, the fate that awaits mankind is far, far worse than the nightmare of WWII.
time to quit being pussies and buck up
Dittos
What percentage of US earners DIE before they collect a single $$$ of Social Security & get only a $255 funeral payment???
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.