Democrats are moving quickly on the first day of the new Congress as Sen. Kamala Harris (D-CA) has reintroduced legislation to cut taxes for the middle class.
According to Sen. Harris’s office, The LIFT the Middle-Class Act would:
· Provide up to $6,000 a year per family, in the form of a refundable tax credit.
o Tax credit applies to households earning under $100,000 annually.
o Tax credit provides up to $3,000 for single filers earning under $50,000 per year.
· The tax cut can be accessed each month or at the end of the year.
o Families can receive up to $500 per month.
o Individuals can receive up to $250 per month.
· The advance credit each month would also provide families an alternative to taking out predatory payday loans. The median payday loan borrowed is $350 and interest on these loans can be as high as 780% annually, which often force borrowers deeper in debt. By making more money available, it would also help families budget for other goals.
· The Institute on Taxation and Economic Policy estimates the LIFT Act would impact one in every two workers and two out of every three children in America. In addition, ITEP estimates approximately 1 million Pell Grant eligible students would qualify for the credit of up to $3,000.
In a statement provided to PoliicusUSA, Sen. Harris said, ” We need to make America’s tax code work for working people. Instead of more tax breaks for the top 1% and corporations, we should be lifting up millions of American families. A real tax cut for middle class families is a good place to start. That is why the LIFT the Middle Class Act is my first priority in the new Congress.”
One of the biggest problems with the Republican tax cuts for the rich is that they did nothing in the present and will increase taxes in the future on the middle-class and poor. If Republicans wanted to really grow the economy and avoid a recession, Harris’s bill is what a real middle-class tax cut looks like.
Democrats are hitting the ground running, as the takeover of the House has emboldened Senate Democrats to push even harder in their fight for the middle class.
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