Search

GREAT NEWS! | $250 – $350 Per Month Child Tax Credit Payments Returning?!

.The Family Security Act would provide a fully paid-for monthly cash benefit for working families modeled on those sent during the second half of 2022. Under the plan, families would receive up to $350 a month for each child aged 0-5 and $250 a month for children ages 6-17. Previously, families were eligible for up to $300 a month payable in six monthly installments with the remainder claimed at tax time. Those monthly payments, part of a broader series of stimulus measures passed during the COVID pandemic, expired at the end of 2021 and reverted to a $2,000 tax credit for children under age 17.


The Family Security Act 2.0 creates a new national commitment to working American families by modernizing and simplifying antiquated federal policies into a monthly cash benefit. Expectant parents would receive the benefit mid-pregnancy, helping them tackle the expenses that start even before a baby is born. This plan is fully paid for by consolidating existing federal spending. As the American Enterprise Institute’s Yuval Levin and Scott Winship wrote in National Review, “the new proposal advances the two core goals shared by all on the right who have been engaged in this debate: support for Americans looking to build families and support for Americans looking to rise out of poverty.” At this point, to be sure, it’s just a proposal—and Capitol Hill today offers few paths to passage, even for popular ideas. Yet, as Ramesh Ponnuru explains, the fact that the outline has attracted support from large parts of the GOP coalition means it could and should serve as the starting point for bipartisan negotiations for a new federal investment in families.


Unlike the expanded child tax credit that was a cornerstone of President Biden’s short-lived American Rescue Plan, which pulled millions of children out of poverty for the year it existed, this policy just might stand the test of time. Romney’s new plan would provide all but the wealthiest families with $350 per month per child under age six, $250 per month per school-age child, and $700 for each of the last four months of pregnancy. That adds up to real money; a family with two small children would be looking at an $8,400 annual supplement to their income. It also eliminates marriage penalties baked into existing anti-poverty programs, and maintains a work-requirement to ensure that the country doesn’t return to the state of affairs before welfare reform. It is also fiscally responsible, funding the new family benefits by consolidating or eliminating several existing federal programs and tax breaks, including the state and local tax deduction. However I think the proposal should go much further in front loading its support to families with the youngest children. Specifically, it should provide $700 per month per child 5 and under. That’s twice Romney’s offer. Lawmakers could make the math work by reducing support for older children to, say, $150 per child per month (instead of $250), and/or by phasing out benefits for upper middle class parents.


The reason to focus on families with infants, toddlers, and preschoolers should be obvious to anyone who’s been a parent: Those are the most financially challenging years, both because parents of young children tend to be younger themselves, and thus poorer, and because public support for young children is much lower than once kids hit kindergarten. Indeed, ask any middle class parent what it felt like when their son or daughter entered elementary school, and the payments for preschool or childcare stopped or dropped precipitously. It’s like getting a big raise. Taxpayers already make a huge investment in kids once they turn 5 – it’s called public education.

7 views0 comments