Just when we think the potential of increased monthly Child Tax Credit payments was deader than disco, the option of increased monthly payments has been revived.
Sen. Mitt Romney has been secretly developing a new strategy that he feels his fellow Republicans would approve over the last few months. Romney – who is generally viewed as a rational voice in the room – has also contacted Democrats over the plan.
Act Concerning Family Security
The “Family Security Act” is the name of the scheme. According to Sen. Romney’s website, it entails updating government family support by depositing a monthly cash reward into families’ bank accounts nationwide.
Additionally, it would “assist families during pregnancy, encourage marriage, and ensure that working and stay-at-home parents are treated equally.”
The Family Security Act provides $350 per month for children under the age of five and $250 per month for children ages six to seventeen. You’ll see that this increases the total child tax credit for a young kid to $4,200; the benefit continues at $3,000 for children between the ages of 6 and 17.
Romney asserts that “American families are under increased financial distress, exacerbated by the COVID-19 epidemic, and wedding and birth rates are at an all-time low.”
The senator continued by stating that the United States has not substantially updated its family assistance system in almost 30 years and that the changing economy has left millions behind.
Additionally, Romney asserts that the Family Security Act will increase family security without increasing the government budget.
Assistance with proofreading creates a difference.
Biden’s 2021 American Rescue Plan was a resounding success, with Americans receiving a third wave of stimulus funding valued at up to $1,400. Additionally, the measure increased the Child Tax Credit by $1,600 (from $2,000 to $3,600) and provided monthly payments of either $300 or $250, depending on the child’s age.
Not only did the American Rescue Plan temporarily pull millions of people out of poverty, but it also provided families with the dignity of being able to pay their bills, acquire necessary prescriptions, and stock their pantry.
How would it work?
If approved, the Family Security Act would operate as follows:
- Payment would be capped at $200,000 for single taxpayers and $400,000 for joint filers. For each $1,000 over the existing Child Tax Credit, the benefit will be decreased by $50.
- A parent may apply for the benefit four months before their new kid’s due date, and the maximum monthly amount per family is $1,250.
- Children having a necessary Social Security number will be eligible for the scheme (SSN).
- Romney’s team claims that this plan eliminates the marriage penalty.
Adult dependents will continue to get a separate Earned Income Tax Credit (EITC) to ensure that no family makes less than the EITC in its present form.
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This is how it would be financed.
According to Romney’s campaign, current spending on the Child Tax Credit and Earned Income Tax Credit totals $188 billion, while his plan will cost $254 billion.
Perhaps the moral of the story is “never say never.” As soon as we begin to comprehend Washington’s coming, something fresh appears.
Extending the enhanced Child Tax Credit has been stuck for some time, but perhaps Romney’s proposal can rekindle interest. This can only assist individuals who have become reliant on those increased payments over the last year.
