Yep. Same with the unemployment checks. All that is 100% taxable and now the tax credit that most of the lower income people count on getting every year is gone. They'll spend that 300 or 600 a month on junk and non-necessities not being smart enough to know that their annual tax situation has changed dramatically. Lotta people are going to be shocked when the tax man cometh after the first of the year. But hey, it's all about getting control of people right. No better way to control them than for them the owe the govt $10-$12K that they have no way of ever paying.