Beneficiaries with the lowest incomes are more likely to spend that money quickly and jumpstart their economy.
Photo: Mariela Lombard / El Diario NY
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President Joe Biden’s proposed stimulus package would provide significant financial assistance to the poorest Americans, who have lost income and jobs during the Covid-19 pandemic, according to an analysis.
The upcoming stimulus bill would send a $ 1,400 stimulus check to eligible individuals, in addition to expanding the Child Tax Credit (CTC) and the Earned Income Tax Credit (EITC).
On the whole, all three programs would provide a 33% increase in revenue, before taxes, of the poorest 20% of Americans, or an increase of $ 3,590 per family, according to the Institute for Fiscal and Economic Policy.
All three programs, a third round of stimulus checks, plus the two expanded tax credits, would provide a similar dollar amount of median benefits to 95% of American households, the ITEP analysis found.
In an interview with CBS MoneyWatch, Steve Wamhoff, director of federal fiscal policy at ITEP, stated that the impact would be greater for lower-income households because profits would represent a larger share of your income.
For Wamhoff, beneficiaries with the lowest incomes are more likely to spend that money quickly and jumpstart their economy.
The benefit from the three programs would provide a total income increase of $ 3,590 for the poorest fifth of Americans, who earn an average of $ 10,900 a year.
The benefit for 20% of households would be similar, $ 3,370But it would have a smaller proportional impact due to its higher median income: $ 51,500 per year.
Under the Democrats’ plan to expand the Child Tax Credit, other 4.1 million children would be lifted out of povertyaccording to the Center for Budget and Policy Priorities, a left-wing think tank.
The plan would also have the tax credit granted monthly, rather than being issued annually when you file your tax return.
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