- More than 93% of children will benefit from Biden’s stimulus package.
- The Child Benefit gives parents up to $ 300 in monthly checks for one year.
- Biden and Democrats have expressed support for making the measure permanent.
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93% of children will benefit from President Joe Biden’s stimulus, the New York Times reported.
Biden’s $ 1.9 trillion package was approved by the Senate over the weekend. This policy is currently framed as an extension of the existing tax credit. But now it is used as a direct payment for families with children.
Now it’s only one year of policy in the bill, but Biden and Democrats have expressed their support for a permanent one.
“The president is interested in exploring options for making the child tax credit permanent as part of the”; create a better night “agenda,” White House press secretary Jen Psaki said last week. To see bipartisan support for ideas like this, including from Republicans Sen. Romney. “
Right now, the child’s tax credit is $ 2,000 for all children under the age of 17, parents can only claim their taxes, CNET reports.
The incentive policy provides parents $ 3,600 for children ages 5 and under, and $ 3,000 for those with children between the ages of 6 and 17.
Instead of receiving the full amount of taxes, parents can now receive monthly checks.
That’s $ 300 monthly checks for people under 5 and $ 250 for older people. Individuals earning $ 75,000 or below and couples earning up to $ 150,000 receive the full check.
The measure will allow parents to receive monthly checks instead of the total amount at tax time.The Times reports that 69 million children will benefit, or 93% of the children, while only 25% of the children will receive only part of the benefit. Where 10% of the poorest people receive nothing
Some projections, such as those from the Center for Poverty and Social Policy at Columbia University, found that monthly payments could reduce child poverty by 45%. For black children, the rate would be reduced by more than 50%.
The expansion will cost more than $ 100 billion for a year, according to the Joint Committee on Taxation. To make it permanent, it would take more than $ 1 trillion in 10 years.