By Philip Baillargeon
Lyndon B. Johnson, another Democratic President who ascended from the Senate to the Vice Presidency and finally to the Presidency, was arguably one of the most progressive presidents in our country’s history while holding a reputation as a moderate from Texas. His Great Society, a collection of welfare programs including Medicare, Medicaid, food stamps (now known as SNAP), school breakfasts, and so much more, was a reinvigoration of working class America in the depths of the tumultuous 60’s. It took every ounce of LBJ’s mastery of Senate politics to get these measures passed, and still today they stand as the greatest role the federal government has in many Americans’ lives.
President Biden seems to be channeling LBJ today as he passes the American Rescue Plan, a $1.9 trillion relief package, through a deadlocked Senate where he spent thirty six years of his political career. The legislation’s anti-poverty mission is bold; the legislation sends $1,400 checks to struggling Americans, expands access to healthcare by increasing subsidies for Medicare, and increases the child tax credit for the 2021 fiscal year.
Sending checks and expanding Medicare access makes sense, but many Americans who are not familiar with the US tax system are likely unaware of what a child tax credit precisely means. Essentially, individuals making under $75,000 annually ($150,000 annually if filing jointly) are entitled to the full amount of $3,000 per child under 17 and $3,600 for each child under 6 starting with monthly payments in July and ending after a 2021 tax return is filed. The tax credit payments will not be available until July because the IRS does not have the resources to simultaneously facilitate this program and regular tax filing season.
Some estimates, like the analysis done by the Center on Budget and Policy Priorities, claim that this expanded child tax credit alone could cut child poverty by as much as forty percent. The entirety of the American Rescue Plan could cut overall poverty by one third and child poverty in half. However, this impact could easily be erased because this increased tax credit ends next year. The CARES Act last March had a substantial impact on poverty last year, but many key provisions expired too quickly to present any lasting impact.
If this economic reform continues and President Biden is able to keep a hold of his Senate majority, President Biden could take his place next to LBJ as an influential, moderate reformer and champion of the working class.
