There is a new bill that is expected to be unveiled within the coming days that will contain $250 monthly stimulus payments to parents for each and every child you have until the year 2025. This is President Joe Biden’s American Family Plan.
The American Family Plan
The plan includes a family tax credit and has no relation to Amrrican Insurance, which if you search through Google, it gives all the PR to the insurance company. The American Family Plan is the second piece to Biden’s Infrastructure or soft infrastructure proposals that he is shaping with multi-trillion dollar bills. You may have heard about the $4 Trillion dollar package already. The details are still unclear due to the bill being negotiated, but it looks certain to pass Congress.
First, we have the American Jobs Plan, which may be the largest spending bill in American history at the minimum of $2 Trillion dollars. Many of Americans are worried how will America pay the trillions of dollars spent by goverment and the answer is taxes. It is highly likely that taxes will rise along with tax hikes to go along with the bills themselves.
The Biden Infrastructure Plan goes to support housing, bridges, airports, job training, and small business programs. This is the moren hard side of the proposal.
The American Family Plan is expected to be at least $1 Trillion dollars. This doesn’t sound like much, but before the pandemic there were no bills this large for human and families. Child care, Pre-K, and raising taxes on the wealthy individuals
Child Tax Credit and the $250 stimulus payments
By extending the child tax credit in the American Rescue Plan that was passed in Congress back in December 2020 pays families monthly for each and every child. If this passes for the next five years, many parents could get to work and know a way in making an additional $250-$300. We are pretty sure there will be more kids being born because of it.
The child tax credits use to be $2,000 per child. What it did was reduce the burden on parents by claiming a child under the age of 17 on their tax returns and $1,400 of that was refundable. Which means you wpuld recieve the $1,400 on top of your next tax return. This is to began in July 2021. It is still unclear how the IRS will direct deposit those funds or send monthly checks to the home address. There may be a complications and confusion with the new system that could easily glitch.
In order to get those $250-300 monthly stimulus payments, you have to file your 2020 tax return. The IRS simply does not have your dependant information unless you file.
A lump sum will be payed when you file your 2021 tax return. From January to July, those who opt in for the monthly recurring payments will not recieve the $250-300 payments for the first 6 months of the year.
The new American Family Plan bill will expend this child tax credit stimulus payments for the next five years if passed and could end up being permanent.
Will the American Family Plan pass Congress?
The answer is probably. President Joe Biden’s soft infrastructure plan is more than likely to pass, but also more likely to change from where it sits right now. Democrats in the past have set the bar high because they know there is room for negotiation and to find middle ground. Also, Democrats in Congress plan to use Budget Reconciliation, which doesn’t need any Republican support, just like they did in the last stimulus bill. The only hurdle for Democrats are the Moderate Democrats that may get in the way.
However, in the past, Congress have usually passed bills that help out families, unemployed individuals, and help small businesses.
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