COVID Relief Day 2: Larson Votes for $1,400 Direct Payments and Critical Tax Relief in Committee
Hartford, CT – During the final day of the Ways and Means Committee markup of the American Rescue Plan, Rep. John B. Larson (CT-01) voted to advance legislation that would provide $1,400 direct payments to Americans, expand the Child Tax Credit and the Earned Income Tax Credit.
“I am proud that the Ways and Means Committee advanced this legislation to provide critical financial relief to Americans that includes $1,400 in direct payments,” said Larson. “I've heard from countless in Connecticut about how vital these payments are to them during COVID, when many are without work or are facing a loss in wages. I worked to ensure that the eligibility threshold wasn't lowered. Now isn't the time to risk those who need benefits losing out.
“The American Rescue Plan will also cut childhood poverty in half by increasing the tax credit to $3600 for a child under 6 and $3000 for all other children. This expansion also raises thresholds for the Child Tax Credit to include middle class families. In Connecticut, this will help more than 720,000 children! 83 percent of children in Connecticut will benefit. This wouldn't have been possible without the work of Chairwoman Rosa DeLauro, who has been a longtime champion of this issue.
“Additionally, this legislation includes a provision to expand the Earned Income Tax Credit (EITC), which would benefit 154,000 workers in Connecticut,” Larson continued. “This will help many low-income workers on the front lines of the pandemic, especially servers, cashiers, home health aides, and others. This provision will also finally expand the EITC to include seniors! It's simply not right that you can owe more taxes simply because you turned 65 and are getting closer to retirement. As the Chairman of the Social Security Subcommittee I’m glad we’re fixing this provision.”
The American Rescue Plan:
- Provides $1,400 in direct payments to Americans.
- Increases the Child Tax Credit to $3,000 per child and $3,600 for children under age 6. It also increases the threshold to $112,500 for heads of households and to $150,000 for married couples.
- Expands the Earned Income Tax Credit for workers, including seniors for the first time.
- Extends the Families First Coronavirus Response Act paid family and medical leave credits.
- Expands the Child and Dependent Care Tax Credit and makes it fully refundable to help families afford child care.
- Extends the Employee Retention Tax Credit to help small business.
- Strengthens the ACA Premium Tax Credits to help middle- and low-income families access affordable, quality healthcare during the pandemic.