Unpopular Opinion Time: I don’t believe The Coronavirus Aid, Relief, and Economic Security Act is a good idea. Just in case you aren’t aware, this stimulus package is the “biggest fiscal stimulus in American history” (NewYorker.com) at $2 trillion. This has been introduced as relief for the millions of Americans out of work as a result of the coronavirus. And I don’t think it’s going to do us any favors. However, before you get out the torches and pitchforks, hear me out first.

Bill and I were talking over here at Bourke Accounting the other day. I reiterated that I thought it was a bad idea for the government to include pretty much all taxpayers in the new stimulus package. Bill looked at me as if I had declared that Bambi’s mother had it coming. I’m liberal, but Bill is LIBERAL. Like I said, though, I have a few reasons for this belief.

First and foremost is the fact that those Americans lucky enough to still be working could be eligible, depending on their income, for this payment. While the standard check amount for a single person with no children is about $1,200, this amount could be higher or lower – Kiplinger.com offers a quick calculator here, if you’re curious. Since we have no idea how long our current situation will last, I believe that we ought to conserve resources while we can. To launch a scattershot relief act that benefits the needy, as well as the okay-for-now citizens, equally, seems wasteful. Don’t get me wrong, I would enjoy receiving a check, but when I need it, not when I’m still floating (somewhat) peacefully along.

Of course, it would be extremely difficult for the IRS to be able to differentiate who really needs relief; as we’ve discussed before, the Internal Revenue Service is dangerously understaffed. So right now, not only do we have a virus going around, but, as we were also in the middle of tax season, this skeleton crew agency must figure out who gets checks – both refund and relief? I hear great and thunderous hiccups in the distance.

Another issue is that the IRS will be using 2018 and 2019 tax returns to calculate the taxpayer’s relief amount. This is fine if one has been religiously filing every year, but what about those who haven’t filed. For example, groups like “low-income taxpayers, senior citizens [and] Social Security recipients” (NBCnews.com) generally aren’t obligated to file. So, now those who haven’t filed in years, are scrambling to find a tax preparer amid a very truncated workforce in order to be eligible for their relief check.

Obviously, I love that our country is trying to alleviate some of the suffering with this new legislation – these relief checks could represent the difference between food on the table and empty refrigerators. Not only that, but I believe it will act as a morale booster for a scared and confused populace. While no one is going to be able to survive indefinitely on $1,200, at least an effort is being made to try and stop the financial bloodletting (and fear) to a certain degree.

Your Bourke Accounting bookkeepers and tax preparers have left the light on for you; we’re trying to make this frightening time a little easier to get through. A Bourke Accounting professional, while not being able solve every problem, can offer you the best in service and advice. At the end of the day, we must remember: We will get through this, we will help each other and we will show the world that, as a country, we care.

Come see us any time. Our number is 502-451-8773 and don’t forget to visit our website at www.bourkeaccounting.com. See you soon!

Written by Sue H.