With the price of goods and services going up, Senator Mitt Romney offers a plan for many people dealing with the price increase. Earlier this week, Mitt Romney announced a plan to combine current policies to create a universal child benefit for all American families.
The new plan is referred to as the Family Security Act. According to the FSA, families with children under six years of age would receive $4,200 per child per year, and older children would receive $3,000 per child per year. (Source)
How the Law Stands Right Now
Child tax credits currently provide up to $2,000 per child who is 16 or under and a citizen of the United States, Newsbreak report. Families with low incomes may not be eligible for the entire amount of the credit because it is partially refundable.
When the family’s credit exceeds the federal tax liability, the family is eligible for a 15 percent refund based on earnings above $2,500, with a maximum refund per child of $1400. (source)
A Look At How Things Will Change Under The Family Security Act
Children below 5 will receive $350 per month under the Family Security Act, and $250 per month for ages 6 and 17. This amounts to an annual benefit of $12,600 for a family of three children under 5.
Essentially, Romney’s FSA offers larger benefits extended to more families, but it completely replaces American welfare programs such as food stamps (SNAP), cash assistance, and Medicaid.
How do you feel about Mitt Romney’s new plan?