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WASHINGTON – Top House Democrats prepare to unveil legislation that would send millions of Americans up to $ 3,600 per child, as lawmakers aim to change the tax code to target child poverty rates under the President Biden’s massive $ 1.9 trillion stimulus package.
The proposal would expand the child tax credit to provide $ 3,600 per child under age 6 and $ 3,000 per child up to age 17 in a year, phasing out payments for Americans who earn more than 75,000 $ and couples who earn more than $ 150,000. The 22-page draft provision, reported earlier by the Washington Post and obtained by The New York Times, is expected to be formally presented on Monday as lawmakers rush to fill in the contours of Mr Biden’s stimulus package.
“The pandemic is pushing families deeper and deeper into poverty, and it’s devastating,” said Representative Richard E. Neal of Massachusetts, chair of the Ways and Means Committee and one of the champions of this provision. “This money is going to make the difference in a roof over someone’s head or food on their table. This is how the tax code is supposed to work for those who need it most. “
The credits would be broken down into monthly Internal Revenue Service payments starting in July, based on a person or family’s income in 2020. Although the proposed credit is only for one year, some Democrats said that they would fight to make it permanent, an action sweep that could reshape efforts to fight child poverty in America.
The one-year credit looks likely to garner enough support to be included in the stimulus package, but it will also have to clear a series of tough parliamentary hurdles due to the procedural maneuvers Democrats are using to bolster the stimulus package, potentially republican-free. support.
As Democratic House leaders aim to have the stimulus bill approved in the House by the end of the month, Congress last week decided to speed up Mr Biden’s stimulus package even as the details legislation is still under development. Backed by Democratic support in both chambers and a lackluster January jobs report, Biden warned he plans to move forward with his plan whether Republicans back him or not.
Republicans, who accused Mr. Biden of abandoning bipartisan promises and expressed concerns about the country’s debt, have largely shied away from his plan because of its size and scope after Congress approved billions of dollars in economic aid in 2020.
But the child tax credit could provide an opportunity for bipartisan support, as Utah Republican Senator Mitt Romney introduced a similar measure that would send payments of up to $ 1,250 per month to families with children. Mr. Romney’s proposal, intended to encourage Americans to have more children while reducing child poverty rates, would distribute payments through the Social Security Administration and offset the costs by eliminating other spending on child protection. government.
“If you’re President Biden, and you’re serious about bipartisanship – working with the people on the other side, bringing people together in unity, he has an opportunity to do it,” the Senator Patrick J. Toomey, Republican of Pennsylvania, said on CNN’s “State of the Union”. (Mr Toomey said he would not support Mr Biden’s proposal due to the price.)
Janet L. Yellen, the Secretary of the Treasury, warned on Sunday that the US labor market was stagnant and found itself in a “deep hole” that could take years to emerge if lawmakers do not swiftly pass the plan. revival.
Ms Yellen refuted fears that big spending would lead to inflation and said the economy would face the kind of long and slow recovery it experienced after the 2008 financial crisis if lawmakers did too little.
“The greatest risk is that we leave workers and communities scarred by the pandemic and the resulting economic consequences,” Ms. Yellen told CNN. “We have to make sure it doesn’t harm their lives.”
Ms Yellen said adopting the stimulus package could allow the economy to reach full employment by next year. Failure to do so, she said, could leave unemployment high for years to come.
The provision expanding the child tax credit is part of legislative proposals to address inequalities exacerbated by the pandemic and help families weather the country’s faltering economy. Researchers at Columbia University have found that Mr Biden’s comprehensive stimulus proposal could cut child poverty in half by 2021 due to the expansion of children’s credit, as well as other changes in children’s credit. tax and expansion of unemployment benefits and food aid.
“Now is the time to make dramatic cuts to child poverty that could improve the lives and futures of millions of children,” said Representative Rosa DeLauro, Democrat of Connecticut and chair of the Credit Committee of Connecticut on Sunday. bedroom. She said she would push to make the credit permanent.
Chris Cameron and Jim tankersley contribution to reports.
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