Democrats to Unveil $3,000 Child Tax Credit Bill
House Democratic leaders will unveil an enhanced child tax credit bill today that could give families $3,000 per child.
The bill, to be presented by Ways and Means Committee chair Richard Neal, would advance a provision of President Biden’s $1.9 trillion American Rescue plan.
According to the bill, the provision offers $3,600 per child under the age of six and $3,000 per child age six through 17 for a single year. The full benefit is available to single parents earning up to $75,000 annually and couples earning up to $150,000, and payments would phase out after those thresholds, according to the plan. The plan would start in July, and families can receive the child tax credit payments on a monthly basis, which advocates say will make it easier to pay their obligations compared to getting a lump sum, according to CNN.
Under current law, the child tax credit provides a credit of up to $2,000 per child under age 17. If the credit exceeds taxes owed, families may receive up to $1,400 per child as a refund. Other dependents — including children ages 17-18 and full-time college students ages 19-24 — can receive a nonrefundable credit of up to $500 each, according to the Tax Policy Center.
Under Biden’s stimulus plan, this provision, in addition to raising the amount, would make the CTC fully refundable by removing a rule limiting the refundable portion to $1,400 and by removing the earnings requirement, according to the plan.
Last Thursday, Utah Senator Mitt Romney introduced the Family Security Act, which would provide families with a monthly cash benefit amounting to $350 a month for each young child and $250 a month for each school-aged child, according to the Act.
“The Family Security Act creates a new national commitment to American families by modernizing and streamlining antiquated federal policies into a monthly cash benefit,” the act reads. “Expecting parents will receive the benefit mid-pregnancy, helping them tackle the expenses that start on day one. If enacted, low-income families would no longer have to choose between a bigger paycheck or eligibility for support. This plan would immediately lift nearly 3 million children out of poverty, while providing a bridge to the middle class — without adding a dime to the federal deficit.”
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