U.S. Senator Kamala D. Harris announced last week, the LIFT (Livable Incomes for Families Today) the Middle Class Act, legislation to provide middle class and working families with a tax credit of up to $6,000 a year—or up to $500 a month—to address the rising cost of living. According to one survey, 57% of Americans do not have enough cash to cover a $500 unexpected expense—meaning that a rent increase, medical bill, or child care expense could lead to a financial emergency.
“Americans are working harder than ever but stagnant wages mean they can’t keep up with cost of living increases,” said Senator Harris. “We should put money back into the pockets of American families to address rising costs of childcare, housing, tuition, and other expenses. Our tax code should reflect our values and instead of more tax breaks for the top 1% and corporations, we should be lifting up millions of American families.”
The LIFT the Middle Class Act would: Provide up to $6,000 a year per family, in the form of a refundable tax credit; Tax credit applies to households earning under $100,000 annually; Tax credit provides up to $3,000 for single filers earning under $50,000 per year; The tax cut can be accessed each month or at the end of the year; Families can receive up to $500 per month; Individuals can receive up to $250 per month; The Institute on Taxation and Economic Policy estimates the LIFT Act would impact one in every two workers and two out of every three children in America. In addition, ITEP estimates approximately 1 million Pell Grant eligible students would qualify for the credit of up to $3,000.
“This is a brilliant approach as we know that all essentials for living a standard quality of life are increasing while salaries are stagnated,” said Alice Huffman, President, CA NAACP. “Most middle-class families cannot afford to live where they work or the rising cost of education for their children, so this welcome relief will help to ensure they can have a shot at realizing the American dream.”
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