Posts Tagged "Senator Romney"

Will More Aid to Parents Be Permanent?

Happy children standing together

To lift families out of poverty during the pandemic, Congress is on the verge of passing a substantial increase this year in the standard child tax credit as part of President Biden’s broader relief package.

But despite the sharp divide over the $1.9 trillion package, some senators – both Democrats and Republicans – want to permanently increase federal assistance to families. Their goals range from reducing racial inequality and rural poverty to providing more financial stability for middle- and working-class parents.

The prospect of a bipartisan plan for increasing assistance to parents beyond this year is welcomed by advocates for the poor and lower-income workers. The proposals represent a belief “that all of society benefits when children are doing well,” said Myra Jones-Taylor, chief policy officer for Zero to Three, which promotes policies to help infants and toddlers.

Prior to COVID-19, she said 40 percent of infants and toddlers were in families below 200 percent of the poverty limit. Parents “didn’t have the financial resources to meet their [children’s] basic needs,” she said.

The current proposal in Congress for immediate pandemic relief would increase the per-child tax credit in 2021 from the current level of $2,000 to $3,600 for children under age 6 and $3,000 for older children and teenagers. This same increase is included in a bill by Democratic Sens. Michael Bennet of Colorado and Sherrod Brown of Ohio to make the larger tax credits permanent.

Republican Sen. Mitt Romney’s plan is even more generous. The Utah senator proposed $4,200 in annual cash payments for children under 6 and $3,000 for older children, and some Republicans may be willing to go along. Romney’s plan, if passed, “would arguably be the biggest anti-poverty measure since the Social Security Act of 1935,” Samuel Hammond, director of poverty and welfare policy at the Niskanen Center, a Washington think tank, said in an interview.

But Hammond said members of both parties are making serious efforts to alleviate poverty by targeting assistance to children. The United States has the highest poverty rate of any developed country, “because we spend so little on child benefits, and the benefits we do have cut out the poorest families,” he said. The current tax credit is not available at all to the unemployed and low-income families earning under $2,500.

Hammond and Jones-Taylor were among the panelists in a webinar last month at the Urban Institute to explore the pros and cons of each approach – a tax credit versus monthly cash assistance. …Learn More