Topline
Building off President Joe Biden’s effort to lift millions of children out of poverty during the pandemic, Democrats on Monday will introduce a bill that would send $3,000 per child to most American families, according to a copy of the proposal obtained by the Washington Post.
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Getty ImagesKey Facts
The proposal, spearheaded by Rep. Richard Neal (D-Mass.), chair of the House Ways and Means Committee, is part of congressional Democrats’ efforts to advance a core tenet of Biden’s $1.9 trillion stimulus proposal.
Over the course of one year, the bill would send $3,000 per child ages 6-17, and $3,600 per child below the age of 6, according to the Washington Post.
The benefit, which would be sent monthly, would begin to phase out for individuals earning $75,000 per year, and joint couples earning more than $150,000 per year.
Under the terms of the proposal, the IRS would begin sending the benefit in July so the agency has time to prepare its systems for the overhaul.
Notably, the benefit would not be deducted from taxpayers’ current tax obligation.
Biden proposed a slightly smaller benefit—$2,000 per child for middle class families, but $3,000 per child for lower income families and $3,600 for children under 6 years old—as part of his initial stimulus proposal, but left it up to Congress to hammer out the details.
Neal’s office did not immediately respond to Forbes’ request for comment Sunday.
What To Watch For
Democrats are racing to push through Biden’s stimulus package within the president’s first 100 days, and House Speaker Nancy Pelosi (D-Calif.) said she wants to pass the relief in the House within two weeks. In the Senate, some elements of Biden’s proposal—including the new child tax credit now being advanced by congressional leadership—could face an uphill battle. Democrats hold narrow control of the Senate and are moving ahead to pass some part of the relief without Republican support utilizing a legislative maneuver known as reconciliation. It’s not clear whether the rules of reconciliation would permit Democrats to pass the child tax credit.
Tangent
Sen. Mitt Romney (R-Utah) unveiled a different child tax benefit proposal this past week that would send at least $3,000 per child to every American family—including $4,200 per year for every child up 0-6—though that benefit would be scaled back for some higher earning families. Romney and other Senate Republicans have balked at the price tag of Biden’s proposal, and appear likely to vote against the package when it hits the Senate floor.
Key Background
The U.S. has one of the highest child poverty rates in the world, a problem that has only worsened since the pandemic.
Further Reading
Biden Plan To Expand Child Tax Credit Could Help Lift Millions Of Kids Out Of Poverty (Forbes)
The Link LonkFebruary 07, 2021 at 11:45PM
https://www.forbes.com/sites/jackbrewster/2021/02/07/report-democrats-to-propose-sending-3000-per-child-to-millions-of-american-families/
Report: Democrats To Propose Sending $3,000 Per Child To Millions Of American Families - Forbes
https://news.google.com/search?q=Send&hl=en-US&gl=US&ceid=US:en
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