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Democrats to propose tax credit that would provide at least $3K per child, reports say

Provision would be part of Biden's American Rescue Plan
Supreme Court Ginsburg
Posted at 10:35 AM, Feb 08, 2021
and last updated 2021-02-08 12:39:50-05

WASHINGTON, D.C. — Democrats are expected to unveil legislation on Monday that would provide at least $3,000 per child to millions of American families over the course of the year.

Several outlets, including The Washington Post and The New York Times, obtained the 22-page provision, which they say would be part of President Joe Biden’s relief plan, which is being drafted in Congress.

The proposal calls for the child tax credit to be expanded.

If signed into law, the Internal Revenue Service would reportedly provide families with $3,600 per child under the age of 6 and $3,000 per child between the ages of 6 and 17.

The amount received would be income-based, with payments being phased out for individuals who make more than $75,000 and couples would make over $150,000, the two newspapers report.

Eligible families would receive these payments beginning in July, delayed to give the IRS time to prepare the initiative, according to The Post.

The expanded child tax credit was part of Biden’s American Rescue Plan, a $1.9 trillion relief proposal that Democrats hope to pass without GOP support, using budget reconciliation.

However, some Republicans have showed signs of support for the idea. Sen. Mitt Romney recently offered a similar proposal that would send more direct payments to families with children. Still, other GOP lawmakers are critical, because the aid would go to working and nonworking Americans.

The Democrats’ proposal is being spearheaded by Rep. Richard E. Neal, who said in a statement that the aid would help families who are being driven deeper into poverty during the coronavirus pandemic.

“This money is going to be the difference in a roof over someone’s head or food on their table. This is how the tax code is supposed to work for those who need it most,” he said.