Institute on Taxation and Economic Policy

February 16, 2021

CBS News: Stimulus bill would boost incomes of poorest Americans by nearly $4,000

Media Mention

Share

nder the plan advancing in the House Ways and Means Committee, the next stimulus bill would send $1,400 to eligible people, as well as expand the Child Tax Credit (CTC) and the Earned Income Tax Credit (EITC). Altogether, the three programs would provide a 33% boost to the pre-tax incomes of the poorest 20% of Americans — or a $3,590 hike per family — according to the Institute on Taxation and Economic Policy.

The three programs — a third round of stimulus checks, plus the two expanded tax credits — would provide a similar dollar amount of average benefits to 95% of U.S. households, the ITEP analysis found. But the impact would be much greater for lower-income households because the benefits would represent a larger share of their income. That’s important because the lowest-earning households are more likely to spend that money quickly, providing a boost to the economy while stabilizing their own households, ITEP director of federal tax policy Steve Wamhoff told CBS MoneyWatch. Read more


Quoted Staff Member

Steve Wamhoff
Steve Wamhoff

Federal Policy Director