February 16, 2021

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

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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