Tlaib rolls out bill to create tax credit for low- and middle-class people

Tlaib rolls out bill to create tax credit for low- and middle-class people
© Greg Nash

Rep. Rashida TlaibRashida Harbi TlaibSanders wins endorsement of top Muslim group Don't let 'welfare for all' advocates derail administration's food stamp program reforms Omar endorses progressive Georgia Democrat running for House seat MORE (D-Mich.) on Wednesday rolled out legislation to create a new tax credit to help low-and middle-income people,

Tlaib's bill makes her the latest Democratic lawmaker to offer a tax-credit proposal in an effort to counter the GOP tax law and address the rising cost of living.

"The bill provides additional income ... and serves as a buffer for people and families who have seen their cost of living rise without their wages increasing at the same pace," Tlaib, a prominent freshman progressive lawmaker, said at a news conference.

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The refundable credit amount under the bill would be up to $3,000 for individuals making less than $50,000 and $6,000 for married couples making less than $100,000, with the amount phasing out as incomes increase.

Unlike similar proposals from Democrats, Tlaib's proposed credit would be available to people even if they are not working.

"If you are individuals on disability or Social Security, or you're the grandmother that's taking care of children — those children who are desperate maybe from a broken family — you are still in need to be able to climb that mountain," said Rep. Sheila Jackson-Lee (D-Texas), a co-sponsor of the bill.

Tlaib's bill is similar to legislation introduced in the Senate by Sen. Kamala HarrisKamala Devi HarrisThis week: House to vote on legislation to make lynching a federal hate crime Juan Williams: Black votes matter Clyburn: Biden 'suffered' from not doing 'enough' in early debates MORE (D-Calif.), a 2020 Democratic presidential candidate. But under Harris's bill, only those with earned income and students would qualify for the credit.

Other Democratic lawmakers and presidential candidates have proposals to expand existing tax credits benefiting people with low and moderate incomes.

The House Ways and Means Committee passed a Democratic bill last week to provide expansions of the earned income tax credit, the child tax credit and the child and dependent care tax credit for two years.

The left-leaning Institute on Taxation and Economic Policy estimated that Tlaib's credit would provide most of its benefits to those in the bottom 60 percent of income, and would cost $380 billion in 2020.

In addition to Jackson Lee, co-sponsors of Tlaib's bill include Congressional Progressive Caucus co-chairs Pramila JayapalPramila Jayapal22 studies agree: 'Medicare for All' saves money Band Portugal. The Man to join Sanders at campaign event in Tacoma Bloomberg builds momentum on Capitol Hill with new endorsements MORE (D-Wash.) and Mark PocanMark William PocanDemocrats call on Pompeo to restore funding to Gaza USDA takes heat as Democrats seek probe into trade aid 2020 Democratic hopefuls focus on Iowa while making final pitches MORE (D-Wis.) and freshmen Reps. Ayanna PressleyAyanna PressleyProgressive Democrat confronts Rep. Cuellar at parade, calls for him to debate her: report There's no such thing as a free bus Don't let 'welfare for all' advocates derail administration's food stamp program reforms MORE (D-Mass.) and Alexandria Ocasio-CortezAlexandria Ocasio-CortezProgressive Democrat confronts Rep. Cuellar at parade, calls for him to debate her: report Ocasio-Cortez claps back after article on her dress: 'Sequins are a great accessory to universal healthcare' Democrats working to ensure Trump's second term MORE (D-N.Y.).