The child tax credit is compared to the universal basic income of children, which helps people pay for their monthly expenses.
About 35 million U.S. households have begun to receive their first monthly expenditures from the U.S. government. This is an expanded income support program that President Joe Biden said on Thursday may help end Child poverty.
Under President Biden’s expanded children’s tax credit program COVID-19 irritation, Eligible families can receive an initial payment of up to $300 per month for each child under the age of 6, and each older child can receive up to $250.
In July, payments to families totaled approximately US$15 billion, covering nearly 60 million eligible children. Many U.S. taxpayers pay automatically, while others require registration.
As part of the $3.5 trillion spending plan being considered by the Democrats in the Senate, Biden hopes to expand monthly benefits in the next few years, and they expect the Republicans to strongly oppose the entire bill.
Biden said in a speech: “This is another big step towards eradicating poverty among American children.” “This may change the lives of many families.”
The child tax credit is compared to the universal basic income of children, although it has income restrictions. It is expected to help people pay for monthly expenses from rent to food and day care.
The Columbia University Center for Poverty and Social Policy estimates that this expansion could reduce the child poverty rate in the United States by as much as 45%.
Critics say that expanding credit is costly and may hinder people from working. Some experts say it may not cover some of the poorest Americans who are not in the tax system.
Democrat-backed $1.9 trillion COVID-19 legislation is called American Rescue Plan The bill enacted in March increased the fees paid to families under the plan.
The law requires the IRS to pay half of the tax credit for the 2021 tax year in monthly installments from July to December this year.
Biden proposes to make monthly advance payments permanent and maintain expanded benefits until at least 2025.
Republican Senator Marco Rubio of Florida, who successfully supported the increase in credit in 2017, said that the Democratic Party’s plan would turn benefits into an “anti-work benefit check” because now almost every family is eligible for this payment, regardless of Whether the parents have a job.
Rubio said: “Biden’s plan not only abandons marriage incentives and job requirements, but also breaks the child support enforcement system as we know it by sending cash to single parents to pay cash,” Rubio said. . A statement was issued on Wednesday.
The government disputed these claims. The Ministry of Finance estimates that 97% of tax credit recipients have wages or self-employment income, while the other 3% are grandparents or have health problems. The joint filer’s credit has also begun to be phased out, at US$150,000, so it will not inhibit the work of the poor, because work will only bring them more income.
Colorado Democratic Senator Michael Bennet said the problem is one of inequality. He said that in recent decades, economic growth has benefited the top 10% of people with incomes, while families are struggling with rising housing, childcare and healthcare costs. He said his voters in Colorado worry that their children will be poorer than previous generations, and therefore need to expand the child tax credit.
“This is the most progressive change in the history of the U.S. tax law,” Bennett told reporters.