Thursday, July 15, 2021

President Biden and Vice President Harris Hail the Start of Child Tax Credit Payments to the Middle and Working Classes

 The significant tax cut for the middle and working classes and cutting of child poverty in half all provided by only Democratic votes with the expansion of the Child Tax Credit which went into effect today with millions of households with children receiving their first monthly payments.

To commemorate this occasion, President Biden and Vice President Harris spoke to the American People earlier today (July 15, 2021.)

Speaking first, Vice President Harris said July 15, 2021, was the day "the American Family got so much stronger. Today the expanded Child Tax Credit is here. For my families all over our country. For children. Help is here. It is a good day America."

After being introduced by the Vice President, President Biden made several remarks regarding what is in the expanded child tax credit, who qualifies, and moving forward including:

"...I believe this is actually a historic day — a historic day in the sense that we continue to build an economy that respects and recognizes the dignity of working-class families and middle-class families. It’s historic and it’s our effort to make another giant step toward ending child poverty in America. I think this will be one of the things that the Vice President and I will be most proud of when our terms are up.

Beginning this morning, nearly all working families — that is people making under $150,000 as families or an individual making under $120,000 — $125,000 who have children, are raising children in America, they’re going to receive their first monthly — first monthly tax cut payment.  That payment — that payment from the expanded Child Tax Credit that we signed into law as part of my — our American Rescue Plan. 

It’s one of the largest-ever single tax cuts for families with children, and it’s a reflection of our belief that the people of this country who need a tax cut aren’t the folks at the top.  They’ve got plenty of tax cuts.  They’re doing just fine.  But it’s the people in the middle, the folks who are struggling, who are just looking for a little bit of — my dad would say, “a little bit of breathing room.”  A little bit of breathing room.

This has the potential to reduce child poverty in the same way that the Social Security reduced poverty for the elderly. And by the way, you think of monthly payments — you get a Social Security check — those who you know get Social Security, they get it monthly. Well, this will be — unless you want it in one lump sum, this would be a monthly payment for childcare — for — excuse me, for your children, a tax cut.

And here’s how the tax credit works: For every child under the age of six, a parent will get $3,600 a year. For every child 6 to 17, they’ll get $3,000 per year. For example, a middle-class family with two young children would expect to receive $7,200 a year to help raise their children. This will be the — they’ll get the first half of this $3,600 starting today. Today. Today. And it’ll be paid out at $600 a month between now, July, and December. And then they’re going to get the rest of the payment next spring around Tax Day...

And if you’re not required to file taxes at all in the past — you haven’t filed because you didn’t owe any taxes, then you can go to: ChildTaxCredit.gov. Let me say it again: ChildTaxCredit.gov. And you will give you — they’ll give you clear information and a link to help you sign up for the first time. This can be lifechanging for so many families.

Because of the way the tax credit was structured before the American Rescue Plan, more than 26 million children from the hardest-pressed working families didn’t get any full payment for the Child Credit — for childcare — for Child Tax Credit. Half of all Black and Hispanic children in America never received the full tax credit. We’ve changed all that...

Ninety-seven percent of the children receiving this credit come from working families. And the other 3 percent includes kids being raised by retired grandparents or by someone with a serious disability.

And by the way, this credit doesn’t start to phase out until a couple is making $150,000 or a single parent is making $112,000 [$112,500]. It begins to phase out then. This is a middle-class tax cut. When I came up — when I decided I wanted this in the legislation, I referred to it in the way it really is: It’s a middle-class tax cut. It’s just like the wealthy get tax cuts for a lot of things, this is a tax cut for your children — having children.

And this can make it possible for a hardworking parent to say to his or her child, “Honey, we get — you can get your new braces now. We can get you a tutor to help you in that math class you’re having trouble with. We can get you the sports equipment you need to sign up to — for your first team you’re going to play on...

...To the people who say we can’t afford to give the middle class a break, I say: We can afford it by making people at the top and the big corporations — over 50 of which paid no taxes last year at all — to finally just — just start paying their fair share. I’m not going to gouge them. Just pay their fair share. Because people who are working hard and paying taxes deserve a break.

That’s why — excuse me for all these terms I’m using, but my Build Back Better agenda, which still needs to be voted on in the Congress, keeps this tax cut for working families in place for years to come. We shouldn’t let taxes go up on working families. We shouldn’t let child poverty continue to stain the conscience or drag down our economy.

And so, I say to my colleagues in Congress: This tax cut for working families is something we should extend, not end, next year.

And I say to all of you watching: Make sure your family, friends, and community know about this tax cut. Send to them, as I said, ChildTaxCredit.gov to learn more about the difference this is going to make in their lives..."

The Democratic National Committee, Congressional Campaign Committee, and Senate Campaign Committee have released a digital ad in competitive districts, including Arizona's Congressional District One that highlights the scope of this historical achievement and reminds voters who voted for it (Democrats) and who did not (none of the Republicans.)

Democratic National Committee Chairperson Jamie Harrison commented:

"Thanks to President Biden and Democrats, 39 million households will start receiving monthly tax cuts on Thursday, helping middle-class families pay rent, put food on the table, and save for the future. These transformative payments will help cut the child poverty rate in half, yet not a single Republican in Congress voted for them. We are making sure Americans know this contrast is clear: While Republicans continue to play games and block efforts to improve the lives of working people, Democrats are delivering for you."

Appearing on Good Morning Arizona, Grand Canyon State Democratic Chair and Legislative District 30 Representative Raquel Teran saluted the Biden/Harris achievement, saying:

“What this means is families who are earning $150,000 or less will be receiving a tax credit of $250 per child over six, or $300 per child under six. Almost 90% of families across the country will see some sort of relief in their bank accounts—this is pretty impressive, and it's all thanks to President Joe Biden and Democrats in Congress. These dollars will help to put groceries in the kitchen, shoes on children's feet, buy school supplies, and it's just a great opportunity for our economy to get back on track.”

Remember. No Republican in Congress, including Arizona's Debbie Lesko, Andy Biggs, Paul Gosar, and David Schweikert voted to reduce child poverty in half and support this middle and working-class tax cut legislation.

These same members of the former Party of Lincoln gladly voted for the Trump/McConnell/Ryan tax cuts that went mostly to the rich in 2017.

Similarly, remember that State Republicans in this last session of the Arizona State Legislature refused to support a $12 million expansion of KidsCare for poor children but wholeheartedly embraced a mostly over billion-dollar tax cut for the ultra-wealthy so they would have pay more to fund public schools.

Honestly, where are their priorities? It definitely is not serving and helping the people or protecting Democracy.

Now the next task will be to ensure that this Child Tax Credit Expansion/Middle and Working-Class Tax Cut is made permanent or at least extended for several years in the budget reconciliation plan.

When voters turn out in 2022 and 2024, remember who the legislators were who voted to lift people in the middle and lower classes up and protect the right to vote.

They should also remember those "public servants" that did not.

 

 

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