There is a plan to give stimulus cheques to parents in the United States. Mitt Romney, a Utah senator, proposed the Family Security Act.
The Family Security Act intends to alleviate child poverty by paying most parents $350 a month for each child under the age of six and $250 for each older child up to seventeen.
The maximum amount per household per month will be $1,250.
The benefit will be available to all families with a single tax-filer earning up to $200,000 and joint-filer households with children earning up to $400,000.
What if I made a little more than the set amount?
According to the information received, single filers or joint filers who earn more than those thresholds will receive $50 less for every $1,000 earned above those levels.
“Unlike the Child Tax Credit, the idea includes a catch: beneficiaries must work, volunteer, or train for at least 80 hours per month, which is probably why it hasn’t been official yet,” Dave Basner explained.
“While members of both parties support helping families, including a work requirement is a sticking point that is now being discussed.”
According to a study, Romney’s approach will increase overall poverty.
According to Washington State University, the concept is aimed at reducing child poverty.
WSU’s Economic Modeling, on the other hand, discovered evidence suggesting single-mother families are more likely to be poor.
The poverty rate among single-mother families might rise from 26.5 percent to 45.5 percent, resulting in a threefold increase in the number of children living in extreme poverty.
“Using a structural model to evaluate this particular proposal shows that reducing work incentives will increase poverty among single-mother families. Thus, it’s likely to increase deep child poverty,” said Salvador Ortigueira, senior author of the study and an economics professor at Washington State University.
According to the WSU study, the idea would replace the Earned Income Tax Credit, which is given to low- and middle-income working parents when they file their taxes.
To help pay for the cash transfers, another aid program, Temporary Assistance for Needy Families, would be eliminated.
“There’s a distinction between tax credits and non-conditional income assistance when it comes to helping individuals in poverty. The current policy is a combination of the two, “Ortigueira stated
“A slight change in the mix, like moving from a tax credit to a guaranteed income, can have a big impact, especially for single moms, who are particularly sensitive to these changes.”
