Democrats' $3.5 trillion budget plan relief to families with children


Democrats' $3.5 trillion budget plan will provide significant relief to families with children

Families with children will be the primary winner if the $3.5 trillion budget outline released by Democrats on Monday continues.

The package aimed to invest trillions of dollars in strengthening families' social safety net through programs and services such as the expanded child tax credit, childcare benefits for working parents, free pre-kindergarten, and more. According to the proposal, investments in working families, seniors, and the environment will amount to $1.8 trillion.

Senators Warren and King proposed a new tax on corporations with profits greater than $100 million.

"At its core, this legislation is about getting the middle class back into the 21st century and giving more Americans the opportunity to get there," Senate Majority Leader Chuck Schumer, Democrat of New York, said in a speech Monday. "By making education, health care, childcare, and housing affordable, we can provide support to tens of millions of families."

Tax credits, education, and nutrition

The plan will encourage several tax cuts that benefit low- and middle-income families, especially those with children.

The fact sheet outlining the budget resolution will expand the child tax credit, earned income tax credit, and family and medical leave payment.

In March, the US bailout boosted the children's tax credit, increased the benefit to $3,000 from $2,000 for children age 17 or younger, and granted an additional $600 for children under six.

According to the Center on Budget, this credit alone will help nearly 65 million children across the United States, almost 90% of the children in the country. It will also lift about 4.1 million children out of poverty and reduce the overall poverty rate by 40%. The continuation of the credit - which was limited to the 2021 tax year - will mean continuing these benefits.

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