Phil Hogan is a Canadian and US CPA working with clients throughout Canada and the US. Phil advises on cross border tax and financial planning matters. Phil can be reached at phil@beaconhillwm.ca or via telephone at 778.433.1314. You can also read more about Phil at www.Beaconhillwm.ca/team/about-phil/
Update: Second Stimulus Package
As we enter the second week of October, a decision on a second stimulus payment is far from imminent. But here is a brief update of what you might watch for in the days leading up to Election Day:
- On Wednesday, September 30, Treasury Secretary Steven Mnuchin offered a $1.62 trillion COVID-19 relief proposal in talks with Speaker Nancy Pelosi on Wednesday, offering more state and local assistance than GOP negotiators have to date in a sign of potential progress toward a deal. If talks go well in the coming days, a couple of scenarios are available to lawmakers as explained by CBS New York:
- If the House can pass a final bill this Friday (October 2) and the Senate the following Monday (October 5), the President could sign as early as Tuesday (October 6). Direct deposits would start going out the Week of October 12, and checks would begin going out the week of October 19.
- If the House can pass a final bill next Friday (October 9) and the Senate the following Monday (October 13), the President could sign as early as Tuesday (October 15). Direct deposits would start going out the Week of October 19, and checks would begin going out the week of October 26.
- If the House can pass a final bill on Friday (October 16) and the Senate the following Monday (October 19), the President could sign as early as Tuesday (October 20). Direct deposits would start going out the Week of October 26, and checks would begin going out the week of November 2.
- Thursday, October 1 saw no breakthrough in discussions, with Pelosi’s spokesperson acknowledging that while the pair “discussed further clarifications on amounts and language but the distance on key areas remain.” Officials in both parties are growing increasingly pessimistic about whether the distance can be closed in the coming days as are financial markets, which saw stocks close well off the highs of the day’s session.
Remember, though, that the House is scheduled to go on recess October 2. That said, Speaker Pelosi has been vocal about passing a second stimulus package even if Congress has to postpone its next break. If the House postpones its hiatus, the Senate will be duly pressured to suspend its recess, scheduled to start October 9.
Another possibility, albeit an unlikely one, is that President Trump might opt to activate a second stimulus package via an Executive Order, especially given that November 3 is looming closer every day now.
But with so much unfolding around The Hill these days, from a contentious Supreme Court appointment to the post-Debate scramble for balance, there are many distractions that can still take up the political bandwidth needed to push a pre-election stimulus package through. As Forbes magazine notes: “It’s possible that even if negotiations go well, we won’t see a new stimulus package on the voting schedule until after the election.”
This commentary reflects the personal opinions, viewpoints and analyses of the Beacon Hill Wealth Management Ltd. partner providing such comments, and should not be regarded as a description of advisory services provided by Beacon Hill Wealth Management Ltd. or performance returns of any Beacon Hill Wealth Management Ltd. client. The views reflected in the commentary are subject to change at any time without notice. Nothing in this commentary constitutes investment advice, performance data or any recommendation that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person. Any mention of a particular security and related performance data is not a recommendation to buy or sell that security. Beacon Hill Wealth Management Ltd. manages its clients’ accounts using a variety of investment techniques and strategies, which are not necessarily discussed in the commentary. Investments in securities involve the risk of loss. Past performance is no guarantee of future results. Any discussion about taxation is for educational purposes only and should not be viewed as professional advice. Consult your tax professional for tax advice on your particular situation.
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