NEW YORK, Aug. 19, 2020 /PRNewswire/ — Now the presumptive Democratic nominee for Vice President, California Senator Kamala Harris proposed a $3,000 payment for individuals ($6,000 for families) per year, reports the Enrolled Agents and accountants Bambridge Accountants New York.
According to the Federal Reserve’s 2019 Survey of Household Economics and Decision Making, 37% of Americans do not have enough cash to cover a $400 unexpected expense – meaning that a rent increase, medical bill or child care expense could lead to a financial emergency.
The LIFT (Livable Incomes for Families Today) the Middle Class Act, introduced by Harris to the Senate in January 2019, would create a new refundable tax credit available to low- and middle-income taxpayers.
- Tax credit provides up to $3,000 for single filers earning under $50,000 per year.
- Provide up to $6,000 a year per family, in the form of a refundable tax credit.
- Tax credit applies to households earning under $100,000 annually.
- The tax cut can be accessed each month or at the end of the year.
- Individuals can receive up to $250 per month.
- Families can receive up to $500 per month.
Taxpayers must be at least 18 years of age to receive the credit and may elect to receive payments of the credit in advance on a monthly basis.
The Institute on Taxation and Economic Policy (ITEP) found that the LIFT Act explicitly targets low- and middle-income workers and their families.
ITEP estimates the LIFT Act would also address the racial wealth gap and the racial and economic disparity introduced by The Tax Cuts and Jobs Act (TCJA) 2017.
The LIFT Act would also be available to taxpayers who file using an individual tax identification number (ITIN), which are often used by immigrants to work and pay federal and state income and payroll taxes.
Alistair Bambridge, partner at Bambridge Accountants New York, explains: «With the TCJA 2017, the bottom 60 percent of households receive only 13 percent of the total benefit of the tax cut. With the LIFT the Middle Class Act, more than 80 percent of the benefit goes to the bottom 60 percent.
«Under the LIFT Act, taxpayers would have the option of receiving their credit monthly, allowing them flexibility to cover rent increases, medical bills and childcare expenses.
«The LIFT the Middle Class Act will provide tax benefits for all income levels, but these are focused on low- to middle-income taxpayers, compared to the Tax Cuts and Jobs Act where 72% of the tax benefits go to the richest 20%.»
Contact Alistair Bambridge, firstname.lastname@example.org, +1 646 956 5566.
Bambridge Accountants New York is a New York-based firm specializing in U.S. expat tax, U.K expats, actors, other creatives in the U.S. and U.K.
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SOURCE Accountants New York