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Stimulus Checks Forever? This Idea Is Starting to Get Some Serious Attention.

Stimulus Payments
President Joe Biden and Vice President Kamala Harris confer together Monday, March 29, 2021, in the outer Oval hallway of the White House. (Official White House Photo by Adam Schultz)

For many struggling Americans, the current third round of $1,400 coronavirus stimulus checks under President Joe Biden’s $1.9 trillion American Rescue Plan just isn’t enough.

But there was wonderful news for eligible parents earlier this week when the Biden administration announced that roughly forty million families will start receiving monthly cash payments on July 15 via the new child tax credits.

Thanks to Biden’s legislation, the expanded child tax credits now make many families eligible to claim as much as $3,600 per year for a child under the age of six and up to $3,000 for children between ages six and seventeen. This means that for a family headed by a couple earning less than $150,000, or an individual making under $75,000, they are now eligible to tap into $250 or $300 payments each month.

According to the White House, the tax credit’s reach will be expansive. Washington officials have estimated that households representing more than sixty-five million children—or nearly 90 percent of all U.S. children—will receive the payments via direct deposit, paper checks, or debit cards.

“The American Rescue Plan is delivering critical tax relief to the middle class and hard-pressed working families with children. With today’s announcement, about 90 percent of families with children will get this new tax relief automatically, starting in July,” Biden said in a statement.

In a recent op-ed for NBC News, research associates Galen Hendricks and Areeba Haider, both of the Center for American Progress, noted that “with one in seven children living in poverty, this (plan) should cut the nation’s child poverty rate nearly in half and meaningfully addresses racial economic disparities.”

They continued: “Monthly installments help provide a reliable source of income that can help families plan for the future, making them more financially stable and making the overall economy more resistant to future shocks. This change also puts the credit more in line with other popular benefits that help certain populations meet their basic needs, namely Social Security.”

Hendricks and Haider added that the plan will give “families more resources to raise their children, (which) has been proven to lead to better outcomes for children, including better nutrition, higher school enrollment, lower maternal stress, and healthier birth weights,” and that these benefit changes should be made “permanent.”

“But more is needed to ensure the credit reaches all eligible children, such as reducing the complicated tax returns and burdensome paperwork from low-income families who are otherwise not required to file federal taxes. Encouragingly, the IRS has pledged to continue its outreach efforts with partner organizations and establish simplified portals for families,” they wrote.

“The pivotal expansions to the child tax credit in the American Rescue Plan will cut child poverty, work toward closing racial disparities and lay the groundwork for creating a stronger and more equitable economy. Congress must now seize this opportunity to extend these benefits, and invest in future generations, by making these changes permanent.”

Ethen Kim Lieser is a Minneapolis-based Science and Tech Editor who has held posts at Google, The Korea Herald, Lincoln Journal Star, AsianWeek, and Arirang TV. Follow or contact him on LinkedIn.

Written By

Ethen Kim Lieser is a Minneapolis-based Science and Tech Editor who has held posts at Google, The Korea Herald, Lincoln Journal Star, AsianWeek, and Arirang TV.

7 Comments

7 Comments

  1. David

    May 20, 2021 at 11:54 am

    Yes, this is truly wonderful. And I’m sure there will be no negative economic consequences for this at all. I’m sure this won’t explode the deficit even more than it already have been for decades, and I’m sure that this won’t lead to inflation that will destroy the purchasing power and savings of lower and middle class people.

    After all, what can go wrong with simply giving people money forever? It’s just so wonderful to hand people money they haven’t earned.

  2. Brian Kearnaghan

    May 20, 2021 at 1:18 pm

    What is the difference between that and just cancelling all Federal Income tax? It sure would save a lot on tax prep fees. Either way, some people are dumber than a box a rocks if they think we won’t get price inflation on everything we buy which is really just the same as taxation.

  3. Tom

    May 20, 2021 at 3:13 pm

    Stimulus checks forever? COOL!
    How about checks to pay for our food,
    clothing, and shelter?!?

  4. Liarspoltergeist

    May 20, 2021 at 8:12 pm

    Addiction to entitlements has created outcomes far worse than any drugs and makes the teaching job easier for most of the K-12 public schools; so lets do more of what has not worked for 50 years

  5. Gene Ralno

    May 21, 2021 at 10:43 am

    News flash: If any of your ancestors were slaves, it’s an absolute certainty that they were owned by democrats. This is how that awful worldwide experience promises to repeat itself.

  6. Torey Goodson

    May 21, 2021 at 11:47 am

    Good lord….why raise taxes just to give it back to us…Government stupidity gone wild. Reign in the Government!

  7. No Pc Views

    May 21, 2021 at 12:19 pm

    To be fair, this is an increase in the existing child tax credit that eligible families can receive, so not a new welfare benefit. The increase is also currently tagged with a sunset clause date of December 2021. However there are Democrat proposals that the American Families Plan will extend it to 2025.

    In context, at the bottom end of society, welfare payments for children, paid specifically to the main carer (usually the mother), are not uncommon in the western world. The UK for example has universal ‘child benefits,’ and also free school meals for children of the poorer families … it hasn’t brought the world to an end there, or elsewhere where there are similar schemes. They were introduced to address some poverty issues. Additionally some women with abusive partners often rely on this type of money as the only funds that they control or can rely on to feed their children.

    However, all payments should be balanced, either by raising tax revenues to pay for them, or reducing spending elsewhere, and it is the lack of a plan for either of those contingencies that is what makes Biden’s plan look expensive and economically irresponsible when the US budget debt is so high.

    Of course the secret catcher in all this is that, who is going to get elected campaigning to stop the money that families have got used to?

    So in reality if the money does carry on until 2025 it will become a permanent feature and will be renewed indefinitely.

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