Democrats Versus The Austerity

Congressional Democrats are hitting Republicans right where it hurts: by actually helping Americans with kids by increasing the Earned Income Tax Credit substantially.

 

House Democratic leaders will unveil legislation Monday that would give millions of families at least $3,000 per child, advancing a key provision in President Joe Biden's $1.9 trillion Covid-19 relief package. 

Chairman of the Ways and Means Committee Richard Neal, who is leading the crafting of the legislation for the stimulus package, will introduce the enhanced Child Tax Credit bill, according to a committee spokesperson. 

"The pandemic is driving families deeper and deeper into poverty, and it's devastating. We are making the Child Tax Credit more generous, more accessible, and by paying it out monthly, this money is going to be the difference in a roof over someone's head or food on their table," Neal said in a statement provided to CNN. 

CNN obtained a copy of the 22-page bill. The Washington Post first reported on it. 

The legislation would provide $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 for couples earning up to $150,000. Payments would phase out after those thresholds. 

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 at tax time.
If this particular legislation is passed by Congress, the payments would begin in July for one year. 

Another big change: The credit would become fully refundable for the year. Some 27 million children currently live in low-income families who receive a partial or no tax credit because they earn too little, according to the left-leaning Center on Budget and Policy Priorities. 

The current Child Tax Credit provides up to $2,000 per child under the age of 17. The credit phases out for single parents with a modified adjusted gross income over $200,000, and $400,000 for married couples. Families receive a single payment. 

Some 90% of families with children will receive an average credit of $2,380 in 2020, according to a non-partisan Tax Policy Center estimate. 

Reps. Rosa DeLauro of Connecticut, Suzan DelBene of Washington and Ritchie Torres of New York are also set to introduce on Monday standalone legislation that would continue the expanded benefit permanently.

 

Going to be interesting to see how Senate Republicans try to kill this by saying American parents need to pay more in taxes, but my guess is they'll say the lower phaseouts amount to a "major middle class tax hike" when it actually doesn't, the phaseouts for the current $2,000 payment would be the same as they are now for any single parents making $75k-$200k and for married couples $150k-$400k.

But it means American parents making less than that get a considerable boost, and can choose to get that boost monthly.

Those are the major differences, and I expect Republicans are going to just claim IT'S TIME TO TIGHTEN AMERICA'S BELT and vote against it anyway, but not all of them will.

We'll see.