President Joe Biden believes that the American people’s hard work and ingenuity are the most powerful economic engines in the world. In contrast, the White House claims that the economy has been a boon to the wealthy at the expense of middle-class families for too long. During Joe Biden’s time as president, he vowed to restore the middle class as the country’s foundation.
Child Tax Credit
According to the White House, an apparent reversal in the house’s construction of the Build Better legislation would extend the Child Tax Credit through 2022 by a substantial amount. It would guarantee substantial reductions in child poverty by permanently extending the entire credit to families with low or no annual income.
This year’s “fully refundable” Child Tax Credit is expected to reduce child poverty to historic lows, making it possible for more families to afford their children’s needs. 27 million children in low-income families received less than the full Child Tax Credit or no credit at all prior to the Rescue Plan’s implementation in 2021, according to CBPP.
According to WBFF, Biden’s Build Back Better Act was passed by the House on Friday. Those payments would be continued under this legislation until 2022. In addition, the tax credit would be made permanently refundable under this proposal. Families will be able to get the money regardless of whether they file taxes or not.
Build Back Better
Children under the age of 6 are eligible for a credit of $3,600, while children aged 6 to 17 are eligible for $3,000 per child. Families began receiving the first half of the extended credit in July and will continue to receive it until December. Children under six will pay $300 per month, while children ages 6-17 will pay $250 per month. People with higher incomes are no longer eligible for benefits.
The Build Back Better Act has to do with revamping the social safety net. Both the child tax credit and the earned income tax credit will receive a combined $200 billion in funding as part of the new antipoverty measures, as per Washington Post. Previously, Sen. Joe Manchin caused a stir when he said that he wouldn’t be supporting the act extension without any substantial changes when discussing the extension of the payments.
It is feared that the legislation will encourage parents to stay at home and avoid work by providing them with money. The Senate still has to approve the Build Back Better plan.
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