- More than 93% of children will receive benefits as a result of a measure in the Biden Incentive Package.
- Child benefit would give parents up to $ 300 a month in checks for one year.
- Biden and Democrats have voiced support for making the measure permanent.
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More than 93% of children will receive benefits as part of President Joe Biden’s incentive package, The New York Times reported.
Biden’s $ 1.9 trillion package was approved by the Senate over the weekend. The policy is currently shaped as an extension of a tax credit that already exists, but will now work as a direct payment for families with children.
At the moment, this is only a one-year policy in the bill, but Biden and Democrats have expressed support for making it a permanent policy.
“The president is interested in exploring options for making the children̵
Currently, the tax credit for children is $ 2,000 for each child under 17. Parents can only claim it on their taxes, CNET reported.
The policy in the incentive will give $ 3,600 for parents for children under 5 and $ 3,000 for those with children between 6 and 17.
Instead of receiving the full amount on their taxes, parents can now receive monthly checks.
These would be $ 300 monthly checks for people under 5 and $ 250 for the elderly. Individuals who make $ 75,000 or less and couples who make up to $ 150,000 will receive a 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 receive benefits, or 93% of children, while currently only 25% of children receive partial benefits, and the poorest 10% receive nothing.
Some estimates, such as those at Columbia University’s Center for Poverty and Social Policy, find that monthly payments can reduce child poverty by 45%. For black children, this percentage will be reduced by more than 50%.
That expansion would cost more than $ 100 billion a year, according to the Joint Tax Committee. If it had to become permanent, it would cost over $ 1 trillion in 10 years.