Mitt Romney would expand federal assistance for children. The Republican senator introduced the Family Security Act as an amendment to the Democrats’ budget resolution. It would give $4,200 annually for children up to age 6, and $3,000 for children age 6 to 17. The benefits would be deposited monthly to eligible families by the Social Security Administration, rather than the IRS. While some elements are similar to President Biden’s proposal to expand the Child Tax Credit, the major difference is in Romney’s plan to pay for the idea. He’d eliminate Temporary Assistance for Needy Families (TANF) and other existing federal tax credits for children and working families, and he’d repeal the state and local tax (SALT) deduction.
CBPP: Biden’s proposed expanded federal child tax credit could lift 10 million out of poverty. According to the Center on Budget and Policy Priorities’ research, Biden’s Child Tax Credit expansion would benefit 9.9 million children and lift 1.1 million children out of “deep poverty” by raising family incomes above 50 percent of the poverty line.
The Senate passed the budget resolution. The Senate last night worked its way through multiple Republican amendments as it takes the first step toward including Biden’s proposed pandemic relief package in a fiscal 2021 budget reconciliation bill. The chamber passed the budget resolution this morning by a 51-50 vote. It will move on to the reconciliation bill itself that will include the relief measure.
John Barrasso joins the Senate Finance Committee. The Wyoming Republican fills the seat of retired senator Mike Enzi, also of Wyoming.
How to increase the EITC for workers without children at home. TPC’s Elaine Maag and Nikhita Airi analyzed ways to boost the Earned Income Tax Credit for “childless” workers who currently receive very modest benefits. Increasing their benefits and extending them to workers age 19 and older could deliver $11.8 billion to 16.5 million childless workers. This would increase the this group’s share of EITC benefits from about 3 percent to 14 percent.
Senate Banking Committee advances Cecilia Rouse’s nomination for CEA Chair. The panel unanimously sent to the full Senate her nomination to serve as chair of the White House Council of Economic Advisers. Rouse would be the first Black woman to lead the CEA. A labor economist, she was a member of former President Obama’s CEA and most recently served as dean of the Princeton School of Public and International Affairs.
Schumer and Warren want Biden to wipe out student loan debt. Senate Majority Leader Chuck Schumer and Sen. Elizabeth Warren introduced a resolution calling on the Biden Administration to forgive up to $50,000 in debt for each borrower. They say this would be allowed under provisions of the Higher Education Act. They also want the IRS to waive taxes on the canceled loans.
Auerbach on international taxes. UC Berkeley economist Alan Auerbach was TPC’s guest on yesterday’s episode of The Prescription. He talked about several alternatives to the current system of corporate taxation, including Biden’s plans to raise the corporate tax rate and expand the minimum tax on the foreign income of US multinationals. If you missed it, you can watch here.
What do Americans think about taxes? TPC will sponsor a Zoom panel discussion at Noon today featuring three of the nation’s leading researchers in public opinion about taxes—Chris Faricy of Syracuse University, Stefanie Stantcheva of Harvard, and Vanessa Williamson of TPC and the Brookings Institution. What they have to say may surprise you. Register here.
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