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House Democrats to unveil enhanced $3,000 Child Tax Credit as part of Biden relief package to lift families out of poverty

 House Democrats will propose a bill on Monday that will give families as much as $3,600 per child for a single year as some lawmakers look to make the Child Tax Credit change permanent.

Richard Neal, chairman of the House's Ways and Means Committee, is spearheading the proposed legislation -- which seeks to bring millions of children out of poverty, outlets reported.

If the 22-page legislation passes, the IRS would automatically start sending monthly checks of at least $250 to millions of families in July, the Washington Post first reported. 


Neal, in a statement to CNN, said that the pandemic 'is driving families deeper and deeper into poverty, and it's devastating.'

Richard Neal, chairman of the House's Ways and Means Committee, is spearheading the proposed legislation

Richard Neal, chairman of the House's Ways and Means Committee, is spearheading the proposed legislation

The proposal comes as Biden, pictured, has called for increasing the child tax credit as part of his stimulus proposal

The proposal comes as Biden, pictured, has called for increasing the child tax credit as part of his stimulus proposal

'We are making the Child Tax Credit more generous, more accessible, and by paying it out monthly, this money is going to be the difference in a roof over someone's head or food on their table,' he said.

The Committee for a Responsible Federal Budget, a nonpartisan government watchdog, said the tax credit could raise the federal deficit by as much as $120billion for one year.

'This clearly is something they want to make permanent policy, rather than just for COVID relief,' said Marc Goldwein, senior vice president at group.

The proposal would give families $3,000 per child age six through 17 and $3,600 per child under the age of six, according to the outlets.

Single parents making up to $75,000 and joint couples who earn up to $150,000 will be eligible to receive the tax credit, which would not be deducted from taxpayers' current tax obligations.

The enhanced child tax credit would allow families to receive the payments monthly instead of as one lump sum around tax time, and would become fully refundable for the year -- marking big changes from the IRS' current credit, CNN reported.

The current tax credit provides a single payment of up to $2,000 per child for all children under the age of 17, the outlet reported.

It phases out for single parents who make more than $200,000 and joint couples who make more than $400,000.


Other standalone legislation expected to be proposed on Monday by representatives Rosa DeLauro, Suzan DelBene and Ritchie Torres seek to make the benefit permanent.

DeLauro told the outlet that one year of relief is not enough and Congress should pass the enhancement permanently.

'We cannot stop here. We must use this moment to pass the American Family Act and permanently expand and improve the child tax credit. One year is not enough for the children and families battling not just the coronavirus, but poverty, too,' she said in a statement.

The legislation comes after Biden suggested, as part of his stimulus proposal, a $3,000 per child credit for low-income families and a smaller benefit of $2,000 per child for middle class families.

'All told, the American Rescue Plan would lift 12 million Americans out of poverty and cut child poverty in half. That's 5 million children lifted out of poverty,' Biden said last month.

About 42 percent of American children live in homes struggling to meet basic expenses, with between 7 million and 11 million children live in households in which they can't afford to eat, according to the Center for Budget and Policy Priorities.

Researchers at Columbia University have said the tax credit could curb child poverty in the United States by more than 50 percent. Washington Post reported.

House Speaker Nancy Pelosi has said Democrats hope to push through Biden's stimulus package in the House within two weeks.

Some Republicans have indicated support for increasing the tax credit, including Senators Mitt Romney, Mike Lee and Marco Rubio.

Romney unveiled his own plan on Thursday that would raise the child tax benefit to at least $3,000 per child for every American family, with up to $4,200 per year for every child ages 6 and under.

However, Romney's plan would get rid of several existing government assistance programs including Temporary Assistance for Needy Families, CNN reported. It would also strip away provisions for state and local tax deductions.

2 comments:

  1. Rarely is money the real issue of poverty. The readiness and ability to accept opportunity when it is available is the chief cause. It is a state of being that access to money will often times continue the cycle.

    ReplyDelete
  2. People in poverty shouldn't breed to begin with.

    ReplyDelete