FAMILIES could get $300 stimulus checks for kids under the age of six as part of Joe Biden's Covid relief package.
The proposal by Congressional Democrats would see monthly payments beginning in July and running through until the end of the year.
They have been adopted by Joe Biden as part of his $1.9 trillion stimulus proposal currently been mulled over by lawmakers,
The Child Tax Credit bill would provide $3,600 per child a year for children under the age of six and $3,000 for those aged six to 17, the Washington Post reports.
The legislation is spearheaded by Rep. Richard E. Neal (D-Mass.), chair of the House Ways and Means Committee.
“The pandemic is driving families deeper and deeper into poverty, and it’s devastating," said Neal in a statement.
"This money is going to be the difference in a roof over someone’s head or food on their table."
The lawmakers want the IRS to send monthly payments from July to December that would account for half the expanded credit.
The other half of the credit would then be refundable next year, on parents’ 2021 tax returns.
The current Child Tax Credit provides up to $2,000 per child under the age of 17 and families receive a single payment.
The credit phases out for single parents with a modified adjusted gross income over $200,000, and $400,000 for married couples.
The moves comes as Democratic lawmakers have proposed the American Family Act making the move permanent.
Their proposal calls for the payments to be made monthly from 2021 onwards.
They want to make the credit refundable, meaning families would still receive a check even if their tax liability is larger than the credit.
Rep Suzan Delbene, D-Wash. told CNBC that Biden’s child tax credit expansion for one year is “important relief for the pandemic”.
“I believe that we should fully expand the credit to help families over the long term. This is good short-term policy, but it’s also very good long-term policy.”
The idea of reforming the child tax credit has also attracted interest from Republican lawmakers, including Sens. Mitt Romney, R-Utah; Mike Lee, R-Utah; and Marco Rubio, R-Fla.
Romney introduced his own bill on Thursday to create a universal child benefit for up to $4,200 per year for children up to age 5 and $3,000 for those ages 6 to 17.
Eligible families could see monthly income of $350 or $250 per month, based on their children’s ages under his plan.
Biden’s child tax credit would help get about 9.9 million children above or closer to the poverty line, according to research from the Center on Budget and Policy Priorities.
That would make the full credit available to 27 million children whose families don’t currently earn enough to receive it, according to the left-leaning think tank.
But its data shows as many as 3.2 million children live in poor households that do not file federal income taxes.
“The tax code is a powerful tool, but it only works insofar as you have really good participation in the tax system,” said Kyle Pomerleau, a tax expert at the American Enterprise Institute.
“Tax credits are likely to miss people who don’t file individual income taxes, and so they will miss many low-income households.”
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