Better Than A Stimulus Payment? Not Having to Pay Taxes.


Taxpayers earning less than $75,000 each year will pay no taxes, on average, next year, due to provisions in President Joe Biden’s big-spending $1.9 trillion relief package, according to Congress’ Joint Committee on Taxation.

The committee released a report last month that reveals that Americans making between $75,000 and $100,000 will pay an average tax rate of just 1.8 percent in 2021, while those earning less than $75,000 will pay, on average, nothing, Fox first reported.

That’s a major difference from the average tax rate that Americans who earned between $50,000 and $75,000 had to pay three years ago, at 2.4 percent.

Taxpayers will see a significant decrease in their bill in 2021 largely due to Biden’s historic implementation of the enhanced child tax credits, along with the stimulus payments.

The president has repeatedly pledged that Americans making less than $400,000 will not see a single tax hike under his administration.

“The reason I’m bothering to do this is I keep hearing in the press ‘Biden’s going to raise your taxes’–anybody making less than $400,000 a year will not pay a single penny in taxes,” Biden said during a visit to a local community college in Virginia this week.

Biden also touted his coronavirus relief bill that temporarily boosted the child tax credit.

The American Rescue Plan raised the original $2,000 credit to $3,000 and allowed parents with children under the age of 6 to qualify for $3,600. The measure also permits parents of children at an age of 17 to be eligible for a tax credit. The credit is fully refundable, and the $2,500 earned-income requirement has been eradicated.

Eligible parents for the full amount include single filers making up to $75,000 and joint filers earning up to $150,000. Parents will receive the child tax credit by periodic payments between $250 to $300 starting in July.

But some lawmakers argue that the expanded relief is insufficient for American families to survive the economic crisis. A group of congressional Democrats have joined together to call on the White House to make the enhanced child tax credits permanent, but the president has not signaled a willingness to do so. Instead, Biden has proposed extending the credit until 2025.

“He said ‘I’d love to do it permanent, but I’m not sure that I can get that through the Senate,’” Rep. Teresa Leger Fernandez (D-N.M.) told reporters after a meeting with the president. “You could tell he was interested in making it permanent, that was the back and forth on that.”

Rachel Bucchino is a reporter at the National Interest. Her work has appeared in The Washington Post, U.S. News & World Report and The Hill.



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