Democrats want to send up to $ 3,600 per child to homes


Representative Richard Neil (D-MA)

Toya Sarno Jordan | Getty Images

Democrats in the House are expected to unveil their plan to send families up to $ 3,600 per child on Monday, with experts predicting that a vast but temporary expansion of homes could lift millions from poverty.

The proposal, a copy of which was obtained by NBC News, would add more detail to President Joe Biden’s call for an extension of the child tax credit as part of his $ 1.9 trillion Kovid-19 relief law. A colleague said the plan was subject to change before it was formally released.

  • The proposal would provide $ 3,600 a year for children under 6 and $ 3,000 for children under 18.
  • The money will be disbursed in monthly installments by the IRS starting in July.
  • Payments will be phased in for individuals making more than $ 75,000 and couples making more than $ 150,000.

The proposal would increase the size of the child tax credit, which under current law provides $ 2,000 for children under 17 and disbursed annually.

Rape Richard Neal, D-Mass., Chairman of the House Ways and Means Committee, said in a statement that the epidemic “is driving families deeper into poverty, and is devastating.”

“We are making child tax credits more generous, more accessible and paid monthly,” Neil said. “With this money there is going to be a ceiling on someone’s head or food on their table. That way the tax code has to work for the people who need it the most, and as long as I use the methods and mediums Chairman. Committee, this is what you can see from us. “

The proposal is expected to be included in Biden’s $ 1.9 trillion relief plan, though it would have to meet certain technical criteria, as Democrats are pushing to move through a congressional process that would give them a potential GOP in the Senate Will enable Filester to be sidelined.

Already, a push for a federal $ 15 minimum wage failed to qualify under parliamentary rules known as reconciliation, a process known as Biden.

Although Republicans have criticized the $ 1.9 trillion plan as too big, it is possible that boosting the child tax credit would garner at least some bipartisan support. R. Mitra, Sen. Mitt Romney, on Thursday released his plan to provide a large child allowance to households and on a permanent basis. Romney financed his plan by cutting into other spending programs.

A Romney spokesman did not immediately respond to Democrats’ request for comment on the plan. The White House also did not respond to a request for comment. White House spokesman Rosemary Boeglin said last week that the Biden administration intends to work with lawmakers with a permanent plan to increase aid to families with children.

Promoting the amount of aid distributed by the US to families with children would correspond to the amount of aid provided to the country by other developed nations, which also typically have lower child poverty levels. The Kovid epidemic has increased stress on families, causing millions of jobs to end and schools across the country to be closed.

According to the Center for Poverty and Social Policy at Columbia University, Biden’s Economic Relief Agenda – which includes promoting child tax credits and other measures – will reduce the US child poverty rate by half.

Critics for left and right

While the plan to increase aid in homes with children has been widely supported by Democrats, Neil’s proposal has faced some technical criticism from progressivists. After the Washington Post’s first report of the plan on Sunday, an analyst on the left, Matt Brunig, wrote that “administrative design here is a mess.”

Brunegg wrote that the plan was made using pre-year tax information to determine the size of the family’s monthly payments, even if their eligibility for the program was based on the current year.

Brunig wrote in a post on Twitter, “This will boost * both * underpayments and overpayments. And overpayments will surprise and trigger claws through bills.”

The plan is likely to face criticism from Republicans, who have insisted on reducing the relief package and targeting it more narrowly.

A counterproposal of 10 Republican senators last month, including Romney and Censor, Susan Collins of Maine and Lisa Murkowski of Alaska cut the child tax credit increase.

Sensor. Florida’s Marco Rubio and Utah’s Mike Lee, who have been supporters of efforts to increase the size of the child tax credits, also came out against Romney’s plan, suggesting that GOP support may be limited. Both senators said they did not support giving relief to families in which parents are out of work.

Both senators said, “We have long said that the child tax credit should be extended more to help working families. In the current epidemic relief bill, we would increase the child tax credit to $ 3,500 and $ 4,500 for young children.” Will support. ” .

“However, we call the Child Tax Credit ‘Child Allowance’, which has been paid as a universal basic income for all parents. It is not a tax relief for parents. It is a welfare aid.” Added.

Subscribe to CNBC Pro for TV Livestream, in-depth insights and analysis on how to invest during the next presidential term.

.