Joe Biden’s government has announced that it will distribute up to $300 a month in tax credit to each child of families with annual incomes of up to $150,000
The president of USA, Joe Biden, launched this Thursday, 15, what is considered the largest program to combat poverty in the country in half a century. From this farm onwards, almost all families who earn up to US$ 150,000 per year (equivalent to R$ 770 thousand) or single parents who earn up to US$ 125,000 (R$ 640 thousand) annually will receive monthly payments of US$ 300 (equivalent to R$ 1.5 thousand) in tax credit for each son and daughter. According to the White House, the program is expected to help nearly 40 million families impacted by the economic crisis in Covid-19. “I believe this is a historic day to continue building an economy that respects and recognizes the dignity of working-class and middle-class families,” Democrat Joe Biden said in a speech.
The aid is part of the trillion-dollar economic support package enacted by the president in February, just over a month after he took office. So far, no middle-class working family has benefited from the package. As payments only started in the second semester, the other half of the tax credit will be reflected in the income tax deduction in the year 2021. The tax credit increases the benefit from US$ 2,000 to R$ 3,600 per year for each children 6 years of age and younger, and families will receive assistance at a monthly rate of US$300 per month through the end of the year. For families aged 6 to 17, the tax credit increases from $500 to $3,000, and their monthly checks will be $250 for each boy or girl. The initiative also extends the $500 credit to dependent children over 18 years of age who were excluded from the previous program. The Democratic president’s initial request was that the tax credit be extended until the year 2025, but in principle the proposal is only in effect until the end of 2020. Republicans are unlikely to support the extension of benefits.