Ziliak quoted in Washington Post on tax credit proposal

UKCPR Director James Ziliak was quoted in a Jan. 22 Washington Post article about an economic stimulus currently under discussion by the administration of Joe Biden. The plan, which is currently in development with Congressional leaders, would direct recurring monthly payments to American families and potentially increase child tax credits, according to unnamed administration officials.

One hope is that a direct payment schedule being developed to help families with children would become a permanent benefit for working families. However, the currently plan is for a one-year relief package that would provide $300 a month for each child younger than six, and $250 per month for children ages 6-17. These payments would be balanced against tax liabilities.

While such a plan could increase the federal deficit by $120 billion in the first year, it could reduce child poverty by more than 50 percent.

Ziliak pointed out in his comments that the design of how payments are disbursed or tax credits applied under such a plan requires simplicity and transparency so that families can accurately estimate their tax liability and not wind up owing money to the government at tax filing time.