The Family Security Act is a proposal by United States Senator Mitt Romney to replace the child tax credit with a monthly child allowance administered by the Social Security Administration. The proposal also includes simplifying and reducing the earned income tax credit, eliminating the head of household filing status, and eliminating several tax credits and deductions.
Romney released the first version of the Family Security Act in 2020. A modified version, called the "Family Security Act 2.0", was released in 2022.
The head of household status was created in 1951 by Congress through the Revenue Act of 1951. [3] It was created to provide tax relief to single-parent households, who previously faced the same tax rates as single people without children despite the additional financial obligations inherent in raising children. [3] [4] It did this, in effect, by extending a "portion of the tax benefits that two-parent families received under the marital income splitting regime adopted nationally in 1948". [5]
To fund the child allowance, Romney proposed:
Romney described most of these changes as "consolidat[ing] overlapping and often duplicative federal policies" into the child allowance. [1] He also advertises that the reformed EITC would largely eliminate marriage penalties that exist under the current EITC (however, two people, each with dependents of their own, could still face a penalty if they married).
In 2022, Romney released a second version of his plan, called the Family Security Act 2.0, which included several changes:
The Center on Budget and Policy Priorities estimates that the number of children living in poverty would be reduced by roughly 1.3 million under the plan, and roughly 20 million children in families making less than $50,000 would be left better off. [10] However, because the plan includes substantial cuts to the earned income tax credit, as well as the elimination of the head of household filing status, roughly 10 million children would live in families who would see the value of their benefits decreased. [10]
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The Family Security Act is a proposal by United States Senator Mitt Romney to replace the child tax credit with a monthly child allowance administered by the Social Security Administration. The proposal also includes simplifying and reducing the earned income tax credit, eliminating the head of household filing status, and eliminating several tax credits and deductions.
Romney released the first version of the Family Security Act in 2020. A modified version, called the "Family Security Act 2.0", was released in 2022.
The head of household status was created in 1951 by Congress through the Revenue Act of 1951. [3] It was created to provide tax relief to single-parent households, who previously faced the same tax rates as single people without children despite the additional financial obligations inherent in raising children. [3] [4] It did this, in effect, by extending a "portion of the tax benefits that two-parent families received under the marital income splitting regime adopted nationally in 1948". [5]
To fund the child allowance, Romney proposed:
Romney described most of these changes as "consolidat[ing] overlapping and often duplicative federal policies" into the child allowance. [1] He also advertises that the reformed EITC would largely eliminate marriage penalties that exist under the current EITC (however, two people, each with dependents of their own, could still face a penalty if they married).
In 2022, Romney released a second version of his plan, called the Family Security Act 2.0, which included several changes:
The Center on Budget and Policy Priorities estimates that the number of children living in poverty would be reduced by roughly 1.3 million under the plan, and roughly 20 million children in families making less than $50,000 would be left better off. [10] However, because the plan includes substantial cuts to the earned income tax credit, as well as the elimination of the head of household filing status, roughly 10 million children would live in families who would see the value of their benefits decreased. [10]
Goldin
was invoked but never defined (see the
help page).:1
was invoked but never defined (see the
help page).{{
cite web}}
: |archive-date=
/ |archive-url=
timestamp mismatch; August 31, 2022 suggested (
help)