Experts emphasize that the Republican proposal is better than the Democratic proposal.
President Joe Biden has put on the table to help the poorest families with an annual tax assistance of up to $3,600 dollars, a project promoted by Representative Richard Neal (Massachusetts), chairman of the House Ways and Means Committee.
However, Republican Senator Mitt Romney (Utah) has a broader proposal, which would send aid of up to $4,200 per child under the age of 6, and $3,000 per child between the ages of 6 and 17.
In fact, both congressmen’s bills are similar, only differing in the amounts, but Chuck Marr, director of Federal Tax Policy, considers Romney’s to be a better option.
Among Marr’s arguments is that Romney’s bill would focus on poor families and single mothers, who could even have greater tax benefits of up to $5,300 a year.
“That is real money for a family that doesn’t have a lot of money,” he said, giving the example of a woman who earns $15,000 a year, is a single mother and has two small children.
“The Biden proposal increases your family’s Child Tax Credit by about $4,000, again, real money,” the expert points out. “The Romney plan would increase your family’s Child Tax Credit by an even larger amount, about $4,600.”
He adds that the Democratic plan is only for one year, but the Romney plan would be permanent.
Romney’s proposal would provide the benefit on a monthly basis, depositing it directly into the bank accounts of the beneficiary taxpayers.
Although it seeks to attack poverty, there are experts who point out that this could cause some parents to stop looking for better jobs.
This Monday, Representative Neal will present the children’s aid bill, which would be integrated into President Biden’s $1.9 billion package.
It is possible that the Democrats will defend their plan and not Romney’s, even though experts indicate that it is better, although the details on the distribution of resources would have to be seen.
The money would mainly benefit communities of color, considering that they are at the bottom of the national average income chart, which in the case of Latinos is $51,000 dollars a year and African-Americans $40,300 dollars a year.
“Chairman @RepRichardNeal says this money will make a difference in someone’s roof over their head or food on their table,” the House Ways and Means Committee posted. “Families are hurting, and Democrats on the Ways and Means Committee are working hard to give them the relief they need as soon as possible.”
The Democratic plan would send maximum aid of $3,600 per child under age 6 and $3,000 per child between the ages of 6 and 17.
In an interview on NPR, Marr noted that any of the relief would benefit an estimated 27 million children.
The committees are preparing the stimulus package to be rolled into one by the Senate Budget Committee, chaired by independent Bernie Sanders (Vermont).
There is no date for approval of the aid package, which also includes the $1,400 check per person, but it should be before mid-March, since the distribution of approved aid ends in December.