Biden’s $1.9 Trillion ‘Relief Package’ Is Short On Relief For Struggling Families

The 2020 election and all the foolishness that came with it seem to have left the Republican Party timid. This is a pretty typical turn of events for the first 100 days of a new presidential administration, but it seems the GOP is taking this to the next level. The Republicans are offering only token resistance to President Biden’s stimulus plan, and he seems more than ready to take advantage of their disarray.

Biden is driving his stimulus plan—a plan that features all the worst ideas of an unshackled Democratic party—through Congress with relative ease. The Republican party seems uninterested, or maybe even unable, to offer any kind of meaningful resistance.

What are the hallmarks of the president’s stimulus plan? He proposes a payment of $250 per child per month, which yields around $3,500 per eligible household per year. For a one child household, that’s almost the same as what the earned income tax credit would yield.

If the government only cut checks to the poorest one-third of households, each would receive almost $50,000.

Image Credit: FEE custom

The EITC is not a rebate, but a credit. People get it regardless of whether they paid taxes in the first place. For example, a person who owes $4,000 in federal income taxes before the EITC, and receives a $3,500 EITC, will only owe the IRS $500. Meanwhile, a person who owes $1,000 before the EITC, and receives a $3,500 EITC will get a check from the IRS for $2,500. The EITC isn’t designed to reduce people’s taxes; it’s designed to give them money.

President Biden estimates that his plan, which would approximately have the same effect as doubling the EITC, will cost around $2 trillion. And on this point the Republicans are derelict. If even one of them had an ounce of curiosity and access to a calculator, he would be able to figure out that for $2 trillion, the government could cut a check to every household in the US for more than $16,000. If the government only cut checks to the poorest one-third of households, each would receive almost $50,000.

1 2 3
View single page >> |

Disclosure: This work is licensed under a Creative Commons Attribution 4.0 International License, except for material where copyright is reserved by a party other than FEE.

How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.