Senate Democrats are planning to counter the recent taxation cuts imposed by President Donald Trump and his administration. To provide relief and help to children and other low-income households, Senate Democrats will be unveiling a new proposal that expands tax credits.
According to CNBC, Senator Sherrod Brown of Ohio is spearheading the plan of the party. Under this proposal, low-income families without children would experience an increase in their income duty credits. The supposed taxation credit would be increased from a maximum of $530 to $2,070.
An In-Depth Look
A team of senators from the Democratic party are gearing up to file a new bill. Senators Dick Durbin, Michael Bennet, Ron Wyden, and Sherrod Brown have all authored and introduced a new bill in the Senate. Their proposed bill aims to provide stable help to children by giving an allowance, considered the first in American history. Together with an established child allowance, these individuals are also championing the increase of Earned Income Tax Credit for low-income households, notes Vox.
The new plan is aptly named as the Working Families Tax Relief bill. Apart from increasing the income credit for low-income households without children, it would also provide more inclusion in terms of ages.
In addition, CNBC states that eligible households would receive up to $500 in advance. This amount is good for one-time use and is interest-free. Likewise, this new plan also highlights the ability of families with young children to receive a new tax credit of up to $3,000.
Benefits of the Bill
Vox notes that the proposed bill has numerous advantages. In particular, it highlights the ability of families with low and middle incomes to provide for their children. This stipend can potentially affect their childhood development, their level of education, and their professional careers in the future.
While many people agree that this program could help children gain better footing in life, the cost of funding the whole program would still be debated upon.
