Senator Mitt Romney claims to have a solution for many people who are dealing with rising prices in the United States. Romney has revealed a plan to give American families more financial stability by integrating existing schemes to establish a single universal child benefit for everybody. The Family Security Act is the name of this new initiative. The FSA’s child benefit would pay $4,200 per year to families with children under the age of six, and $3,000 per year to families with older children.
Where Do We Stand With The Current Law?
The child tax credit provides a credit of up to $2,000 per kid under the age of 16 who is also a US citizen under current legislation. Because the credit is partially refundable, some low-income families may not be entitled to the whole amount of the credit. A family with a bigger credit than their federal income tax liability is entitled to a return equal to 15% of earnings over $2,500, up to $1,400 per kid.
What Has Changed Since The Family Security Act Was Enacted?
Parents of children under the age of five are entitled to $350 per month under the Family Security Act, with the amount decreasing to $250 per month between the ages of six and seventeen. This equates to a significant dividend of $12,600 per year for a family with three children under the age of five. In essence, Romney’s FSA expands benefits to more parents, but it eliminates social services in the United States, including food stamps (SNAP), cash assistance, and Medicaid.
Do you agree or disagree with Mitt Romney’s new plan?