The idea of increased monthly Child Tax Credit payments has been resurrected, just when we thought they were deader than disco.
Sen. Mitt Romney has been secretly working on a new strategy that he hopes his Republican colleagues will embrace for the past few months. Romney, who is known for being a moderate voice in the room, has also met with Democrats to discuss the concept.
The Family Security Act Is a Federal Law That Protects Families
The “Family Security Act” is the name of the proposal. It entails upgrading federal support for families by putting a monthly cash benefit into the bank accounts of families around the country, according to Sen. Romney’s website. It would also “help families during pregnancy, promote 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 aged six to seventeen. You’ll notice that this increases the total child tax credit for a young child to $4,200; the benefit for a child aged 6 to 17 remains at $3,000.
“American families are under an increasing financial strain, which has been exacerbated by the COVID-19 pandemic, and marriage and birth rates are at an all-time low,” Romney claims.
The senator went on to add that the US family assistance system has not been comprehensively overhauled in nearly 30 years and that the changing economy has left millions behind. Romney also says that the Family Protection Act will provide better security to families while not increasing the federal deficit.
It Makes a Difference if You Have Proof Assistance.
The 2021 American Rescue Plan, which provided Americans with the third round of stimulus money worth up to $1,400, was a major success. The bill also increased the Kid Tax Credit by up to $1,600 (from $2,000 to $3,600) and provided monthly payments of either $300 or $250 depending on the age of the qualified child. The American Rescue Plan not only helped millions of people get out of poverty for a while, but it also gave families the dignity of being able to pay their bills, buy required medications, and stock their pantries.
What Would Be the Procedure?
Here’s how the Family Security Act is supposed to work if it passes:
- The payment threshold for single filers would be $200,000, and for joint filers, $400,000. For every $1,000 over the current Child Tax Credit, the benefit will be decreased by $50.
- With a maximum monthly payment of $1,250 per family, a parent can apply for the benefit four months before the due date of a new kid.
- Children having a required Social Security number will be eligible for the scheme (SSN).
- This plan, according to Romney’s team, removes marriage sanctions.
- The Earned Income Tax Credit (EITC) component for adult dependents will be maintained separately to ensure that no family earns less than the EITC in its current form.
Here’s How You’d Pay for It:
According to Romney’s staff, current spending on the Child Tax Credit and Earned Income Tax Credit totals $188 billion, while his plan will cost $254 billion. He offers the following to make up for the $66 billion shortfalls:
|Eliminate head-of-household status||$16.5 billion|
|Eliminate Child and Dependent Care Credit||$4.7 billion|
|Eliminate Temporary Assistance for Needy Families (TANF)||$16.5 billion|
|Change Eligibility for the Supplemental Nutrition Assistance Program (SNAP||$3.1 billion|
|Eliminate State and Local Tax Deduction (SALT)||$25.2 billion|
|Annual Total||$66 billion|
“Never say never,” as the story’s message might suggest. Something fresh appears just as we’re getting our brains around what’s coming out of Washington. Extending the increased Child Tax Credit has been stuck for some time, but Romney’s idea may rekindle discussions. This can only assist individuals who have been reliant on the increased payments over the past year.