The U.S. Congress is working on finalizing the “American Rescue Plan,” which includes more payments to families with an income below $150,000. The new legislation is poised to grant families an additional $1,400 per dependent and an enhanced tax credit.
“All of the focus has been on the $1,400 when, in reality, for a family of four, they should be focused on the $14,000,” Ed Mills, Washington policy analyst at Raymond James, wrote in a post this week.
Married couples filing jointly and earning up to $150,000 yearly would receive $5,600 in checks. The proposed expanded child tax credit would also provide eligible households an additional $3,600 for children below the age of 6 and $3,000 for children ages of 6 and 17. This means a family of four could receive $6,000 to $7,200 in tax credit.
Currently, households earning under $200,000 for individuals or $400,000 for married couples receive $2,000 for every child under 17.
The new payments when added to the family’s $2,400 checks from the previous relief package passed in December would total more than $14,000 of stimulus aid thus far in 2021. This excludes the U.S. government’s enhanced federal unemployment benefits. Biden’s $1.9 trillion package includes provisions to provide an additional $400 weekly jobless aid.
The American Rescue Plan on Wednesday garnered the support of more than 150 senior business executives. In a letter addressed to congressional leaders, the group urged the U.S. Congress to approve more relief to boost the economy.
“Congress should act swiftly and on a bipartisan basis to authorize a stimulus and relief package along the lines of the Biden-Harris administration’s proposed American Rescue Plan,” the letter read.
The House of Representatives is expected to vote on the $1.9 trillion COVID-19 relief package as early as Friday.
“It’s about putting vaccinations in the arm, money in the pocket, children in the schools, workers in their jobs and it is what this country needs,” Speaker Nancy Pelosi said.
The California Democrat said she believes the bill would earn enough votes in the House. The package would then move onto the Senate where Democrats are expected to pass the resolution through a budget reconciliation process.