Markets rallied Monday. There's more information about what is and isn't in the House's relief bill, including the Child Tax Credit, which could give families up to $3,600 per child. Here's how the headlines could affect your money.
Markets started March on a high with all three indexes up by the end of trading Monday. The Dow jumped 2%, the Nasdaq rose 3%, and the S&P 500 gained 2.4% for its biggest one-day gain since June.
Markets remained fairly flat Tuesday morning.
Among the provisions left out of the $1.9 trillion relief package the House passed Saturday was a national ban on evictions, which is set to expire this month. Democrats chose to pass the relief bill through a process called budget reconciliation, which limits what they could include.
The bill does include $20 billion in rental assistance and direct payments of up to $1,400, but advocates of the eviction ban say this money will take time to reach people. They're calling on the president to extend the ban through executive order instead.
Video by Stephen Parkhurst
Among the provisions included in the Covid relief package is a change in the Child Tax Credit, raising the amount to $3,000 per child ages 6 to 17 and $3,600 for children under 6 for 2021. The current credit provides $2,000 per child. The credit would start phasing out for individuals earning more than $75,000 and married couples filing jointly making more than $150,000.
While the credit is typically paid out in one lump sum, the bill enables taxpayers to receive it in monthly installments of $250 and $300, respectively.
A wealth tax is a tax levied on a person's total assets including cash, pension plan, and property. Senator Elizabeth Warren was among the policymakers proposing the Ultra-Millionaire Tax Act on Monday, a 2% annual tax on wealth over $50 million and 3% for wealth over $1 billion.
Although the daily news can have an impact on your wallet, remember to take a long-term outlook when it comes to decisions on spending, saving, and investing.
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