Summary: Congressional Democrats released an alternative to the Biden administration’s proposed stimulus plan that would narrow eligibility of the stimulus checks. The plan would offer direct payments of $1,400 per person (dependents would also receive the full value), phasing out at a rate of 5 cents per dollar above $50,000 in income ($100,000 for married filers). PWBM projects that this provision would cost $439 billion, with 91 percent of families receiving a check.
| Income Group | Average benefit | Share receiving rebate | Average rebate (conditioned on receipt) | Percent change in after-tax income | Share of benefit |
|---|---|---|---|---|---|
| Bottom quintile | $1,970 | 100% | $1,970 | 41% | 22% |
| Second quintile | $2,825 | 100% | $2,825 | 11% | 24% |
| Middle quintile | $2,880 | 100% | $2,880 | 6% | 23% |
| Fourth quintile | $2,975 | 85% | $3,505 | 4% | 21% |
| 80-90% | $2,655 | 78% | $3,400 | 2% | 8% |
| 90-95% | $1,320 | 47% | $2,820 | 1% | 2% |
| 95-99% | $360 | 12% | $2,975 | 0% | 0% |
| 99-99.9% | $0 | 0% | $620 | 0% | 0% |
| Top 0.1% | $0 | 0% | $0 | 0% | 0% |
Note: “Income” is defined as AGI plus: above-the-line deductions, nontaxable interest income, nontaxable Social Security benefits, nontaxable pensions and annuities, employer-side payroll taxes, and corporate liability. Note that this definition excludes transfer income and thus understates low-income tax units' income.