Dueling child-cash plans take middle stage as coronavirus-aid define takes form
The $ 1.9 trillion coronavirus aid package that is making its way through Congress is said to be the site of a new debate between Democrats and Republicans – how best to get more money for families with children.
Democratic tax advisors in the House of Representatives revealed their plan late Monday ahead of an expected serve meeting later in the week of their part of a bill that would go to the Senate and be immune to the 60-vote filibuster requirement.
“The pandemic is driving families deeper and deeper into poverty and is devastating. We’re making child tax credits more generous and accessible, and if we pay them out monthly, that money will make the difference between a roof over your head or food on the table, ”said Massachusetts Democrat Richard Neal.
According to the draft legislative language received from MarketWatch.com, the Democrats’ plan would increase the current statutory child tax credit of $ 1,000 for one year to $ 3,000 or $ 3,600 for families with children under 6.
The credit will be refunded. So if a family’s tax burden is higher than the balance, they are still eligible to receive it. The loan would expire at an income level of $ 75,000 for individuals and $ 150,000 for couples.
The Liberal Economic Security Project praised the plan, saying, “Monthly direct payments are the fastest and most effective way to help families who need them.”
The Democratic proposal was unveiled just days after Senator Mitt Romney, a Republican from Utah, published his own proposal to give money to families with children but instead use the Social Security Agency to cut checks rather than the Internal Revenue Service .
Under Romney’s proposal – which, contrary to the Democrats’ plan, would be a permanent program – families would be entitled to a monthly benefit from pregnancy. For children aged 5 and under, the benefit is USD 350 per month. By ages 6-17, the benefit would drop to $ 250 per month.
Romney would offset the cost of his plan with a combination of cuts elsewhere in the budget. That includes getting rid of the state and local tax withholding that was capped in the 2017 tax cut bill, and Republicans say the rich benefit most from it. Other cuts would remove the government’s temporary aid program for families in need, head of household tax status, and the existing child and dependent care tax credit.
“American families are facing a greater financial burden, compounded by the COVID-19 pandemic, and marriage and birth rates are lower than ever. Additionally, we haven’t reformed our family support system in nearly three decades, and our changing economy has left millions of families behind, “Romney said Thursday.
“Now is the time to renew our commitment to families to help them overcome the challenges they face as they take on the most important job each of us will ever do – educating the children of our society. “
Liam Donovan, director of the Policy Resolution Group at Bracewell LLP in Washington, said the fact that the Democrats had spearheaded the launch of their child tax credit increase package this week shows that they are serious and the chances Package to be included in a final is good.
“It’s been a long-standing priority,” he said. “As for playing with Romney, I think it’s almost coincidental, but in terms of their intentions here, they seem pretty clear that this is a high priority.”
While the proposed democratic plan is temporary, history has shown that lawmakers are ready to extend the population’s temporary tax breaks when they expire. This could result in the proposal, for which the Democrats have not set counter cuts or revenue increases elsewhere, falling into a group of provisions known as “tax renewers” that are routinely given a new life annually or every two years.
Donovan said that including the idea in coronavirus law and passing the law through the budget balancing process, meaning it cannot be blocked by Senate Republicans, shows how tax legislation will reflect the political polarization of the time.
“As long as the only road to important law is reconciliation, I believe that tax legislation will have all the characteristics of what it takes to achieve something through reconciliation. It will make it more complicated, but that’s just the nature of the beast at this political moment, ”he said.