U.S. Senator Kamala D. Harris last week re-introduced the LIFT (Livable Incomes for Families Today) the Middle Class Act, legislation that provides 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. The latest Federal Reserve report on the economic well-being of Americans indicated that four in ten adults still say they don’t have enough savings to cover a $400 emergency expense.
“We need to make America’s tax code work for working people,” said Senator Harris. “Instead of more tax breaks for the top 1% and corporations, we should be lifting up millions of American families. A real tax cut for middle class families is a good place to start. That is why the LIFT the Middle Class Act is my first priority in the new Congress.”
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; and 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; and Individuals can receive up to $250 per month.
-The advance credit each month would also provide families an alternative to taking out predatory payday loans. The median payday loan borrowed is $350 and interest on these loans can be as high as 780% annually, which often force borrowers deeper in debt. By making more money available, it would also help families budget for other goals.
-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.
Supporters of the LIFT the Middle Class Act include DEMOS, Economic Security Project, SEIU International, the National Urban League, Greenlining Institute, Los Angeles Mayor Eric Garcetti, San Francisco Mayor London N. Breed, Oakland Mayor Libby Schaaf, Sacramento Mayor Darrell Steinberg, Long Beach Mayor Robert Garcia, Stockton Mayor Michael Tubbs, Santa Rosa Mayor Chris Coursey, Berkeley Mayor Jesse Arreguin, Chula Vista Mayor Mary Casillas Salas, Corcoran Mayor Raymond Lerma, Selma Mayor Jim Avalos, Madera Mayor Andy Medellin, Wasco Mayor Pro Tem Alex Garcia, Kern County Supervisor Leticia Perez, Monterey County Board of Supervisors Chairman Supervisor Luis Alejo, Selma Councilmember Yvette Montijo, Selma Councilmember Louis Franco, State Center Community College District Trustee Miguel Arias, State Center Community College District Trustee Eric Payne, Center for Community Change, Ontario Chamber of Commerce, SEIU 2015, AIDS Healthcare Foundation (AHF), National Coalition of 100 Black Women Oakland Bay Area Chapter, and Washington State Budget & Policy Center.
Harris previously introduced the bill during the 115th Congress.
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