“When we do the best we can, we never know what miracle is wrought in our life or the life of another.” — Helen Keller.
The American Rescue Plan
Following a year of challenges and days of seemingly never-ending rollercoaster rides across the business spectrum, more COVID-19 relief is awaiting finalization with President Biden’s American Rescue Plan (ARP). The bold and quick-action recovery plan includes the White Houses’ initiative to “act expeditiously to help working families, communities, and small businesses persevere through the pandemic,” with rescue and recovery for a more better, more healthier, and more secure America.
Key America Rescue Plan Bill Tax Provisions:
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- Raise the minimum wage for employees to $15 per hour.
- Revise the child tax credit as completely refundable for 2021, with an increased credit from $2,000 to $3,000 per child, and perhaps $3,600 for children younger than six years of age;
- An expansion of the earned income tax credit for 2021 taxpayers without dependents is $1,500. Additionally, increasing the threshold limit for the tax credit up to $21,000 with workers above retirement age being eligible for the credit as well;
- Introduction of an increase to the childcare tax credit to compensate for qualifying expenses for childcare expenses up to $4,000 per child or $8,000 for two or more children. This tax credit would be refundable to applicable taxpayers and accessible to any family making less than $125,000 a year, with threshold benefits up to $400,000 for joint filers.
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Additional America Rescue Plan Bill Provisions
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- $1,400 relief payments per qualifying persons in addition to the $600 in December.
- Reinstate paid sick and family leave benefits until September 30 that expired at the end of December, to help provide relief for COVID-19 time off for workers;
- Increase Federal Pandemic Unemployment Compensation from $300 to $400 per week.
- An additional $15 billion in grants to the hardest-hit small businesses to help them back on their feet;
- Health insurance assistance for families;
- $25.0B Billion in pandemic rental assistance;
- $5.0B for struggling renters to cover energy and water costs;
- Aid for local municipalities to keep police, firefighters, and critical personnel working to keep communities safe and secure.
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Nearly 70% of American’s approve of the stimulus. As the COVID-19 economic winter weather conditions continue, the approaching expansive economic roadwork costs should not make us discouraged. Don’t let your hope be uprooted. The yesterdays will likely not return, but there will be future new dawn ahead.