Biden says tax credit for children is a “giant step” to fight poverty | News by Joe Biden

The Children’s Tax Credit is compared to a universal basic income for children that helps people meet their monthly expenses.

Some 35 million American families have begun receiving their first monthly payment from the U.S. government in an expanded income support program that President Joe Biden said Thursday could help end it. poverty of children.

Under the Children’s Tax Credit program that has been expanded under Biden’s COVID-19 stimulus, eligible families receive a monthly down payment of up to $ 300 for each child under the age of six and up to $ 250 for each adult child.

Payments made to families, which cover nearly 60 million eligible children, total about $ 15 billion by July. Payments are automatic for many U.S. taxpayers, while others are for enrollment.

Biden wants to extend the extended monthly benefits for years to come as part of a $ 3.5 trillion spending plan that is being considered by Senate Democrats, who expect strong Republican opposition to the bill.

The Center for Poverty and Social Policy at Columbia University estimates that the expansion could reduce the child poverty rate in the United States by up to 45 percent. [Evan Vucci/AP Photo]

“It’s our effort to take another giant step toward ending child poverty in America,” Biden said in a speech. “This can change lives for so many families.”

The Child Tax Credit is compared to a universal basic income for children, even if it has income limits. It is intended to help people meet their monthly expenses from rent to food and food.

The University of Columbia’s Center for Poverty and Social Policy has estimated that the expansion may reduce the child poverty rate in the United States by up to 45 percent.

Critics have said that extended credit is expensive and may discourage people from working. Some experts have said they will not be able to reach some of the poorest Americans who are not in the tax system.

COVID-19 legislation backed by a $ 1.9 trillion Democrat known as American Rescue Plan enacted in March has increased how much is paid to families in the program.

The law has made half of the tax credit for fiscal year 2021 payable in advance by the Internal Revenue Service in monthly installments from July to December this year.

Biden has proposed to make permanent monthly advance payments permanent and to maintain at least benefits until 2025.

Florida Republican Senator Marco Rubio, who lived successfully raising credit in 2017, said Democrats’ plans will turn benefits into an “anti-labor welfare control” because almost all families can now qualify for it. payment, regardless of whether the parents have a job.

“Not only will Biden’s plan abandon incentives for marriage and work needs, but it will also destroy the child support enforcement system as we know it by sending cash payments to single parents without ensuring that the ‘orders to support children are being established,’ ‘Rubio said in a statement Wednesday.

Chuck Schumer, leader of the U.S. Senate majority, standing behind a U.S. Treasury control drill during a press conference on the extended payments of the Children’s Tax Credit to the United States Capitol in Washington [Kevin Lamarque/Reuters]

The administration has challenged those claims. Treasury Department estimates indicate that 97 percent of tax credit recipients have wages or income from self-employment, while the other 3 percent are nannies or have health problems. The credit also starts to gradually go down to $ 150,000 for common presenters, so there is no disincentive for the poor to work because a job will only give them more income.

Colorado Democratic Sen. Michael Bennet said the problem is inequality. He said economic growth has benefited the top 10 percent of wage earners in recent decades, while families are struggling with rising costs of housing, child care and health care. He said his voters in Colorado are worried that their children will be poorer than previous generations and that it requires the expansion of the tax credit for children.

“It’s the most progressive change in the U.S. tax code ever,” Bennet told reporters.

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