Reuters
- The Institute on Taxation and Economic Policy found that key Democratic provisions will increase incomes of the poorest Americans by 33%.
- The key provisions included the $1,400 stimulus checks, and the expansion of the child tax credit and the Earned Income Tax Credit.
- The House Ways and Means Committee bill will be marked-up this week.
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The poorest 20% of Americans can expect to see a nearly 33% boost to their incomes with key Democratic stimulus provisions of $1,400 stimulus checks, and the expansion of child tax credits and the Earned Income Tax Credit.
In a report released on Tuesday by the Institute on Taxation and Economic Policy – a nonpartisan think tank – primary elements of the House Ways and Means Committee’s draft stimulus bill will likely have significant effects on the poorest Americans.
On Monday, the Ways and Means Committee, which is responsible for the largest portion of the overall pandemic relief package, unveiled its bill that called for $1,400 stimulus checks at a $75,000 income threshold, and the expansion of the EITC and a fully refundable $3,000 child tax credit.
In regards to the effects of those provisions on the poorest American quintile, the ITEP report found that:
- The $,1400 stimulus checks would increase incomes by an average of 20.3%;
- The proposed child tax credit expansion would increase incomes by an average of 9.7% and provide around $116 billion to families with children for the year;
- And the EITC expansion would increase incomes by an average of 3% and provide around $16 billion to childless workers.
All three provisions have been sources of debate in Congress. Progressive lawmakers have been pushing to ensure the income threshold does not fall below $75,000 to ensure struggling families are not left out of needed relief, and lawmakers from both sides of the aisle drafted variations of the child tax credit that ranged in the amount of monthly benefits to be provided.
Other elements of the Ways and Means bill included providing $400 weekly unemployment benefits through the end of August and stabilizing pensions for more than one million Americans. The bill is expected to be marked-up this week.