US President Joe Biden started a monthly payment for parents. Americans were eager to receive $300 as part of the child tax credit of 2021. A new plan of stimulus check has been reinstated through the year 2022 of the child tax credit. It is proposed by Sen. Mitt Romney, R-Utah.
Congress failed to extend the benefits. But still, the monthly payments of $300 per child would be received by the parents as a part of the 2021 stimulus package.
Eligibility criteria under Rodney’s family security act
The measure would allow families with children up to 5 years old to receive $350. Moreover, parents with 6-17-year-old children would get $250. The parents will receive monthly payments of a maximum of $1,250 amount.
Reformation of the family support system in America
According to the experts, over 3.7 million children sank into poverty when the child tax credit was stopped. Additionally, due to the Covid19, most Americans faced a financial crisis. Therefore, parents expecting a baby would get payments four months before the due date of the baby’s delivery.
The whole plan would help in reforming the family support system. Hence, it is a realistic path in terms of the renewal of enhanced tax credit.
Lawmakers want the credit tied to work requirements
Romney’s bill introduced in 2021 would have work requirements. It will attract bipartisan support. After the Build Back Better plan, experts have found that it loses to gain Traction. That’s why Romney’s bill came into existence for the payments that were phased out by income thresholds.
It can be best understood by an example. Suppose a single tax filer earns $200,000, then $50 would be deducted for every $1000 he or she earns above their income thresholds.
But there are some Americans who have issues with work requirements. Some experts say that if the plan is truly intended for children, then work requirements will not make any sense. Also, if parents lose work, their income from child tax credit will leave them in a bad situation.
