There is currently no word on when a second stimulus plan may be officially approved, but that hasn't stopped presidential candidate Joe Biden from unveiling some of his own financial relief proposals. In a new prospective plan rolled out by the Biden campaign, parents would receive up to $300 in monthly payments, during the ongoing coronavirus pandemic. According to Business Insider, the plan would increase the annual tax credit to $3,000 for kids under 17 years old, with an additional $600 for kids under the age of 6.
"Biden's CTC expansion will provide thousands of dollars of tax relief for middle-class households," reads a page on Biden's website. "It will also help the most-hard pressed working families avoid poverty and attain greater economic security." The plan would take effect next year and last "as long as economic conditions require." Business Insider notes that 90% of families with kids would receive an average of $2,380 from the credit this year, per a Tax Policy Center estimate, as about 40 million families claim it each year. However, there are about 27 million children under 17 who are excluded from the benefit due to their families not earning enough for them to qualify.
No surprise, Donald Trump is lying about my tax plan. Here’s the truth about how I’ll make corporations pay their fair share while ensuring Americans making under $400,000 don’t pay a penny more. pic.twitter.com/0cpJjpCS33— Joe Biden (@JoeBiden) September 17, 2020
Ernie Tedeschi, who is a policy economist at Evercore ISI, spoke to Business Insider and offered his professional opinion on Biden's proposal, saying that it would make the tax credit fully refundable. He compared it to "the equivalent of sending people checks." Tedeschi added, "Once you make it refundable, it's no longer dependent on what your tax bill is to the federal government. You get it regardless of the tax you owe."
Tedeschi also stated that the monthly-payment structure stands to only strengthen families' budgets. That's important because when you are talking about lower-income families, you have these expenses every month," he said. "The need for diapers doesn't wait until April."
Tax expert Seth Hanlon, who is a senior fellow at the Center for American Progress, also spoke with Business Insider, and stated that he sees Bidens' plan as very beneficial for lower-income families who struggle to maintain financial stability. "The more dramatic impact is it reaches families that get much less than the full amount, those getting little or nothing from the tax credit now." Biden's plan, Business Insider notes, lays out a much more detailed explanation, as opposed to that of President Donald Trump, who has stated that he wants more tax cuts if he is elected to a second term, but has not elaborated on what exactly his plan would entail.