Summary: Among other provisions, the Biden administration’s proposed stimulus plan includes another round of Economic Income Payments (EIPs). The EIPs would provide 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 $75,000 in income ($150,000 for married filers). PWBM projects that this provision would cost $477 billion, with 95 percent of families receiving a stimulus 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% | 20% |
| Second quintile | $2,825 | 100% | $2,825 | 11% | 22% |
| Middle quintile | $2,950 | 100% | $2,950 | 6% | 22% |
| Fourth quintile | $3,290 | 96% | $3,435 | 4% | 21% |
| 80-90% | $3,875 | 87% | $4,465 | 3% | 10% |
| 90-95% | $2,545 | 74% | $3,435 | 1% | 3% |
| 95-99% | $705 | 23% | $3,070 | 0% | 1% |
| 99-99.9% | $10 | 1% | $1,095 | 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.
