Dems Pushing Monthly Payments For Parents (Advance CTC)

So the big stimulus news today is that the Washington Post is reporting, according to anonymous sources, that the Dems are currently drafting legislation that would instruct the I.R.S. to send recurring monthly payments to tens of millions of American families as an advance of the expanded Child Tax Credit that Biden wants in his stimulus plan. 

So just like the stimulus checks were the advance refund of the Recovery Rebate Credit, what Dems are pushing for here is to increase the Child Tax Credit to thirty-six hundred dollars for children younger than six, as we discussed when we went over Biden’s stimulus plan, as well as to increase the Child Tax Credit to three thousand dollars for children between the ages of six and seventeen, and of course making seventeen-year-olds eligible period, and for the IRS to pay these amounts monthly in advance for twelve months. 

So if you have a child under six, you would receive a three hundred dollar monthly check for them, if you have a child between the ages of six and seventeen, you would receive a two hundred and fifty dollar monthly check for them.  And obviously if you have multiple children, those payments are multiplied by the number of children you have in each age bucket. 

I imagine that if this is passed there would be some kind of reconciliation on the twenty-twenty-one tax return where the Child Tax Credit would normally be reported except now if the Dems get their way here, that Child Tax Credit would have been paid in advance. 

Washington Post is reporting that unlike the stimulus checks, the Biden administration and Democratic lawmakers are hoping to make these child benefits a permanent government program that would continue in future years, according to three anonymous senior Democratic officials. 

However, right now they’re only pushing to do this for one year.  The Post is reporting that the benefit would be phased out for affluent Americans, though the precise income level has not been determined, if I had to guess, I would guess that this is just the existing Child Tax Credit income limitations. 

It’s reported that this benefit could increase the federal deficit by as much as one hundred and twenty billion for one year, but researchers at Columbia University ay that it could reduce child poverty in the United States by more than fifty percent, if those figures are true, that seems like an amazing payoff, hundred and twenty billion to reduce child poverty by fifty percent. 

Will Republicans go for it?  Definitely not all of them, but we do know that Republican Senators like Marco Rubio and Mike Lee are big fans of the Child Tax Credit.  Post is reporting that Democratic lawmakers are also exploring whether Treasury can set up an online portal for parents to manage their receipt of the advance payment of the credit.  Also, it’s being reported that the plan would give taxpayers the option of simply receiving the tax credit when they file their return rather than throughout the year, not sure why you would do that, but that’s said to be an option in this Democratic plan.  There are many unanswered questions at this point, such as would a recipients’ tax liability have to be wiped out first in order for them to get the monthly payment to how exactly would the IRS roll this out. 

Lots of questions, but this is what some top Dems are thinking.  What do you think about this proposal, paying the Child Tax Credit out early, let me know in the comments. 

In other stimulus news, Biden’s Press Secretary said today that Biden’s position on the filibuster has not changed, meaning that as of right now, he’s not pursuing getting rid of the legislative filibuster. 

In other Biden news, today Biden is expected to ask the Department of Agriculture to allow states to increase SNAP benefits and to increase by fifteen percent benefits awarded to low-income students through school meals programs.  Separately, Biden is also making efforts to get stimulus checks in the hands of the eight million Americans who have not yet received them, the White House says it will ask Treasury to consider improving its disbursement of stimulus checks by, and I quote, “working to make sure those who have not yet accessed their funds get the relief they deserve.” 

Biden is also expected to ask the Labor Department to make it clear that workers who refuse to return to working conditions that could expose them to coronavirus should still be eligible for unemployment benefits. 

Today Biden will also restore collective bargaining power to federal workers and direct agencies to develop recommendations directing the administration to start the work of an executive order requiring federal contractors to pay a fifteen dollar per hour minimum wage and provide emergency paid leave. 

In impeachment news, Senate Majority Leader Chuck Schumer said today that the House’s article of impeachment will be delivered to the Senate on Monday according to Nancy Pelosi. 


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