Who Received Stimulus Checks and How Much Was Spent

[IceWizard]

Who Received Stimulus Checks and How Much Was Spent

Did You Miss Your Stimulus Check?


BY 
KIMBERLY AMADEO

Updated March 18, 2020


In 2009, the Economic Stimulus Act sent out $14.2 billion in stimulus checks.1 2 
The one-time payment went to recipients of Social Security, 
Supplemental Security Income, veterans, and railroad retirees.

The checks were part of the American Recovery and Reinvestment Act. 

Congress passed the ARRA to end the 2008 recession. The government’s 
goal was that recipients would immediately spend the checks. That would 
be a quick, direct way to jumpstart economic growth.

***NOTE::
In March 2020, Congress considered stimulus checks as part of an 
aid package to help those impacted by the coronavirus pandemic. 
Whether or not the government will send stimulus checks 
has not yet been decided.

When Did Stimulus Checks Go Out?

In May 2009, the federal government sent a one-time 
Economic Recovery Payment (ERP) of $250 each. 
These checks went to more than 52 million beneficiaries of certain 
federal programs. These included Social Security, 
Supplemental Security Income (SSI), Railroad Retirement Board (RRB) 
and the Department of Veterans Affairs (VA).


Did Everyone Receive Stimulus Checks?

ARRA was unusual in that only those beneficiaries received checks. 
Most taxpayers received tax rebates called the Making Work Pay program. 
Instead of a check, the rebates showed up as a reduction in their 
tax withholding amount. The Obama administration argued that they 
would receive benefits quicker than waiting for a rebate after 
they filed their taxes in 2010.

***IMPORTANT::
In 2009, the average taxpayer received a tax cut of 
$400 per individual or $800 per family

The tax cuts appeared in each paycheck starting in June 2009. 
Each employee had about 6% less withheld from their checks. 


What Other Stimulus Benefits Taxpayers Received in 2009

Stimulus checks were just one part of ARRA. Another $247 billion 
went to immediate relief for families, according to the now-defunct 
Recovery.gov website. This included tax cuts, tax credits, 
and extended unemployment benefits. The goal was to stimulate 
auto and home sales.

For example, the child tax credit was expanded for the working poor. 

Also, the earned-income tax credit was expanded for families with 
three or more children. ARRA added a $2,500 tax credit for college tuition. 
Many of the newly-unemployed took advantage of this credit to 
update their skills or change careers. It budgeted more than $1 billion 
for an $8,000 tax credit for first-time homebuyers. It allowed taxpayers 
to deduct sales taxes on new car purchases.

Congress set aside almost $1 billion to suspend taxes on unemployment benefits. 
It budgeted $70 billion to continue the Alternative Minimum Tax shelter.1

What else did ARRA allocate? It targeted $83 billion to modernize 

federal infrastructure. To increase alternative energy production, it 
allocated $23 billion. Another $138 billion went to expand health care. 
It allocated $117 billion to improve education, including teacher salaries 
and Pell Grants. Science research received $18 billion. 
Small businesses were helped with $54 billion in tax deductions, 
credits, and loan guarantees.



Stimulus Checks in 2008

The year before ARRA, the George W. Bush administration sent 
out stimulus checks to battle the 2008 recession. It spent $120 billion 
in fiscal years 2008 and 2009.1 It rebated taxes on the first $6,000 
of income for individuals or the first $12,000 of income for couples. 

Stimulus checks were mailed out as follows:

• Individual taxpayers received up to $600.4
  
  
• Married couples were eligible for up to $1,200.
  
  
• Households with children received $300 per dependent child.
  
  
• Rebates were reduced for higher incomes at $75,000 for individuals and $150,000 for couples.
  

Around 20 million retirees on Social Security and disabled veterans also 
received checks for $300 if they earned at least $3,000 in benefits in 2007.4 
Couples received $600.

The Bush Economic Stimulus Package didn't have the impact it should have. 

A 2008 survey found that only 20% of those who received checks spent them. 
Another 32% put the money into savings. The rest use the checks to pay off debt.


Which Worked Better?

The ARRA's $14.2 billion in checks was less than the $120 billion in 
stimulus checks distributed by the Bush tax rebate. But ARRA disbursed 
the checks between May and October 2009. That's two months faster 
than the Bush checks, which went out between May and December 2008. 

In addition to the checks, the ARRA tax rebates put money in 

people's hands starting in June. It should have turned the recession 
around quicker. Unfortunately, many people didn't realize they had 
received a tax cut. They expected checks in the mail. As a result, 
they didn't spend the extra money because it didn't feel like a bonus.



The self-employed and others who made estimated payments didn't get their tax cuts until April 2010. 
Many of these small business owners also didn't notice the tax cut. By the time they received it, 
the recession was over. They should have gotten a tax break sooner, so they could 
have used it to hire workers.

[Charon]

I still get notices to this day that i am getting hundreds or thousands of dollars due to my circumstances. I never knew that disability changes to regular social security when u hit that age.

i never check my bank account then. and i never believe em. whom is getting all this money? surely not all of those whom needed it.