The Democratic majority in the House of Representatives is scheduled to present a legislative proposal on Monday that would grant millions of families at least $ 3,000 per child, as part of President Joe Biden's 1.9 billion aid package against the economic crisis caused by the coronavirus pandemic.
The Internal Revenue Service (IRS) would provide
$ 3,600 a year for each child under age 6, as well as $ 3,000 for each child ages 6 to 17
.
These amounts would decrease for citizens who earn more than $ 75,000 a year, as well as for couples who together add more than 150,000 a year, according to the advance of the proposal published in the media.
Payments would be sent monthly starting in July based on the individual or family's income in 2020. Although the proposed loan is only for one year, some Democrats said they would fight to make it permanent and combat child poverty in the United States by long term.
The bill, spearheaded by Richard E. Neal, a Massachusetts Democrat and chairman of the House Ways and Means Committee,
comes as Democrats accelerate to push through the
stimulus
plan
before the end of the month.
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It occurs days in addition to days after Senator Mitt Romney, Republican of Utah, presented a proposal to send yet more direct cash per child to American families, thereby pledging bipartisan support for Biden's plan.
"The pandemic is driving families into poverty, and it is devastating. We are making the child tax credit more generous, more accessible, and by paying it monthly, this money will be the difference from having a roof or food on the table. "Neal argued in a statement to CNN.
The 22-page bill was advanced by The Washington Post.
President Joe Biden at the White House in Washington DC, Friday, February 5, 2021.AP Photo / Alex Brandon
This move would define the economic agenda of the Biden Administration and
could leave a lasting imprint on American welfare policy
.
His execution could also prove crucial in clarifying the ability of Democrats to maintain control of Congress, given its likely direct impact on the lives of tens of millions of voters.
Despite Romney's support, several Republican lawmakers and conservative academics have criticized these measures because, they say, they would provide government assistance to both working and non-working citizens.
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White House officials and Senate Democrats have reviewed Neal's proposal and support the plan, according to the aforementioned media, which would involve more than 120,000 million dollars a year from the public purse, increasing the national deficit.
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The United States has one of the highest rates of child poverty in the developed world, according to the Organization for Economic Cooperation and Development, in part because it spends less on child benefits than almost any other country.
A Columbia University analysis of Biden's proposal revealed that it would reduce the number of children living in poverty by as much as 54%, or 5 million children.
More than a million black children would lift themselves out of poverty with the plan, according to the researchers.
"The greatest impact that we can have for economic justice in our country lies in a policy that reduces child poverty,"
said Democratic Senator Cory Booker.
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The Treasury Department would run a website for families to update their information if their annual income drops and they become eligible for payment.
The IRS would begin sending payments on July 1 in a manner similar to how it sent the stimulus payments, directly depositing the money into taxpayers' bank accounts.
According to a draft of the plan, the IRS would deposit checks worth $ 300 a month for each child under the age of 6 and $ 250 for each child between the ages of 6 and 17.
That would equate to $ 3,600 and $ 3,000 annually respectively.
Treasury Secretary Janet Yellen during a virtual roundtable to discuss the American Rescue Plan, in the South Court Auditorium in the White House complex in Washington DC, Friday, February 5, 2021.AP Photo / Jacquelyn martin
The plan represents an expansion of a $ 2,000 child tax credit currently in effect,
both by extending it to low-income families and by making it more generous
.
Under Neal's plan, the current parameters for eliminating these existing $ 2,000 would be the same.
Lowering the income requirement for that aid would reduce its value to wealthier families and skip Biden's promise not to raise taxes on families with less than $ 400,000 in annual income.
Matt Bruenig, founder of the left-wing think tank People's Policy Project, warned that tying the benefit to the previous year would mean that some families would receive too much or too little money if they have had more children, or there have been family changes, such as marriage or custody.
“Many families whose circumstances change will end up receiving lower monthly payments than they are eligible for, or they will find themselves with a huge surprise tax bill at the end of the year,” Bruenig warned.
Under Neal's plan, the rules for immigrant children are the same as the existing law, meaning that a minor must have a social security number for the family to receive the benefit, but the parents do not.
About four million tax returns were filed by people without a social security number before Republicans restricted eligibility in their 2017 tax law.
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"The president has made cutting child poverty in half this year a central priority of his first legislative proposal through an expansion of the child tax credit in the US Rescue Plan, and he looks forward to working with members of Congress on this. legislation, "reported a White House spokesman.
With information from AP, The Washington Post, The New York Times and CNN.