On Thursday, the Biden government started the biggest anti-poverty program initiated by the federal government in over a half-century, for the first time delivering monthly payments to the devastating majority of U.S. parents. The U.S. Treasury Department said that it sent checks to families representing around sixty million children under a provision in an approved stimulus package from the Democratic leaders in March.
Check holders can withdraw payments on Thursday, but some bank accounts can withdraw them as early as Wednesday. The move, expected to cost around $120 billion yearly, provides $300 a child younger than six, in addition to $250 a child age six and older. Previously, the government said that around eighty-eight percent of all children countrywide would receive the aid.
Today is a historic day for our country. Because beginning this morning, nearly all working families started receiving their first tax cut payment from the Child Tax Credit of up to $300 per child.
Help is here with the American Rescue Plan.
— President Biden (@POTUS) July 15, 2021
Middle-class Tax Cut
On Thursday, during an event at the White House with the U.S. Vice President Kamala Harris, the president praised the benefit as representing a significant achievement and said it would be one of the proudest actions of the government. Biden urged Congress to extend the program beyond this year and stressed that it amounts to a middle-class tax cut that will help the families at the working-class level to meet their needs.
Biden further adds that it is his team’s effort to take another massive step toward ending child poverty in the United States. Nine families, including young children, also joined him that will receive the tax credit. Furthermore, the program is a major economic and political test for Biden and his government. Previously, the Internal Revenue Service (IRS) has come under fire because it produces a recipient website that criticizers say is tough to navigate.
According to some experts, the White House is overstressing the anti-poverty impact of the program. Furthermore, the payments are going out because of concerns that the United States economy is running too hot, which means they could bring more back inflation. Whereas the effort of the White House to extend the program beyond December tangled up in more comprehensive congressional talks, leaving its pro-long fate indeterminate.