WASHINGTON (NEXSTAR) – All eyes will be on President-elect Joe Biden on Thursday night as he launches his coronavirus relief package, which is expected to include the largest $ 2,000 stimulus test to date for most Americans.
While this will certainly provide relief, the proposal is also expected to include a significant extension of the existing tax credit for children. This component is designed to provide targeted assistance to poor and middle-class households.
The plan was first reported by The Washington Post. The report says no figure has been set, but is expected to be similar to a campaign promise of $ 300 a month for U.S. households for each child under 6, and $ 250 a month for each child between 6 and 17 years.
The credit extension was explained on his campaign website as follows:
As president, he will support a significant expansion of the Children’s Tax Credit (CLA) during the crisis, as proposed in the HEROI law passed by Parliament. Biden’s CTC expansion will provide thousands of dollars in tax breaks for middle-class households. This will also help the strongest working families to avoid poverty and achieve greater economic security. It will also make the CTC fully recoverable so that families in difficult stress can have quick access to these resources. And it will allow families to receive monthly payments if they choose.
The Post reports that Biden is expected to extend the benefits to millions of poor families who do not currently have access to the program.
The benefit will be claimed by most parents to offset existing obligations when paying taxes, according to The Post. However, many parents who do not do enough to file taxes will be able to fill out an IRS form and receive the money in the same way that these first $ 1,200 incentive checks were distributed.
The cost of Biden’s stimulus proposal is expected to be about $ 1 trillion, and is also expected to include extending unemployment benefits, aid to local and state governments, boosting small businesses, funding to distribute vaccines and schools, and third round of incentive checks.
Analysts say a vote on Biden’s stimulus plan should give us an idea of whether Republicans will work with the Democratic majority or collectively draw a line in the sand.
West Virginia Sen. Joe Manchin, a Democrat in West Virginia, said he was not in favor of big checks. Last week, he said “absolutely no” to the idea of direct payments with such a high financial rate, which are not specifically targeted, according to the Washington Post.
Last week, Biden told voters in Georgia that if Democrats won the race, they would check $ 2,000 incentives for most Americans.
Democrats eventually won, and Senate Minority Leader Chuck Schumer said the money was on the way.
“One of the first things I want to do when our new senators sit down is deliver the $ 2,000 checks to American families,” said Sumer, who will become the majority leader.
Previously, GOP-controlled Senate and Majority Leader Mitch McConnell was the biggest obstacle to getting bigger direct payments.
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