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Biden stimulus plan would boost incomes for nation’s poorest by 33%, analysis shows – Florence, South Carolina

Florence, South Carolina 2021-02-16 08:25:50 –

(NEXSTAR) – President Joe Biden’s $ 1.9 trillion American rescue program will benefit millions of Americans, but will have a significant impact on the poorest one-fifth of the population. Will give analysis According to the Institute of Tax and Economic Policy (ITEP).

A non-profit think tank that studies tax policy Houseways and Means Committee Last week, during a stimulus check and an increase in tax credits, we found that America’s poorest 20% of average household income jumped 33% before tax, or $ 3,590.

The large relative increase in income is due to a combination of a $ 1,400 stimulus check and increased Chid tax credits (CTCs) and earned income tax credits (EITCs).

The combined cash and tax profits are similar for 95% of Americans, but for the poorest 20% (who earn an average of $ 10,900 a year), Biden’s stimulus will be a proportionally significant boost.

The House Ways and Means Commission Democratic Plan provides individuals up to $ 75,000 with a $ 1,400 stimulus check, phasing out up to $ 100,000. For co-filers, the range ranges from $ 150,000 to $ 200,000 with an additional $ 1,400 stimulus check for dependents.

Survey According to Harvard-based independent Opportunity Insights, consumers under $ 78,000 are more likely to spend their incentives within the first month than high-income earners.

CTC jumps from $ 2,000 up to $ 3,000 for children over 6 years old and up to $ 3,600 for children under 6 years old. With this plan, your credit will also be fully refunded, eliminating the following revenue requirements: Researcher says Prevent the poorest Americans from benefiting.

The EITC also said that by lowering age eligibility and raising income caps, it would increase from $ 500 to $ 1,500, about three times the number of low-income workers planned by the Democratic Party.

Biden stimulus plan would boost incomes for nation’s poorest by 33%, analysis shows Source link Biden stimulus plan would boost incomes for nation’s poorest by 33%, analysis shows

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