- More than 93% of children would receive benefits as a result of a measure from Biden’s stimulus package.
- The family allowance would give parents up to $ 300 in monthly checks for one year.
- Biden and Democrats expressed support for making the measure permanent.
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More than 93% of children would receive benefits as part of President Joe Biden’s stimulus package, The New York Times reported.
Biden’s $ 1.9 trillion package was approved by the Senate over the weekend. The policy is currently framed as an expansion of a tax credit that is already in effect, but would now function as a direct payment for families with children.
At the moment, it is a one-year policy on the bill, but Biden and the Democrats have expressed support for making it a permanent policy.
“The president is interested in exploring options to make child tax credit permanent as part of the ‘Rebuild better’ agenda,” said White House press secretary Jen Psaki last week. “He is excited to see bipartisan support for ideas like this, including from Republicans like Senator Romney.”
The tax credit for children is currently $ 2,000 for each child under the age of 17. Parents can only claim it on their taxes, CNET reported.
The stimulus policy would give $ 3,600 for parents of children under 5 and $ 3,000 for those with children between 6 and 17 years old.
Instead of receiving the full amount in their taxes, parents can now receive monthly checks.
That would be $ 300 monthly checks for children under 5 and $ 250 for older ones. Individuals who earn $ 75,000 or less and couples who earn up to $ 150,000 would receive a full check.
The measure would allow parents to receive monthly checks instead of the full amount at the time of tax. The Times reported that 69 million children would receive benefits, or 93% of children, while now only 25% of children receive a partial benefit, and the poorest 10% receive nothing.
Some projections, such as those at Columbia University’s Center for Poverty and Social Policy, concluded that monthly payments could reduce child poverty by 45%. For black children, this rate would be reduced by more than 50%.
This expansion would cost more than $ 100 billion for a year, according to the Joint Committee on Taxation. If it were to become permanent, it would cost more than $ 1 trillion in 10 years.