User:Jaydavidmartin/Family Security Act

The Family Security Act is a proposal by United States Senator Mitt Romney to replace the child tax credit with a monthly child allowance administered by the Social Security Administration. The proposal also includes simplifying and reducing the earned income tax credit, eliminating the head of household filing status, and eliminating several tax credits and deductions.

Romney released the first version of the Family Security Act in 2020. A modified version, called the "Family Security Act 2.0", was released in 2022.

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History

The head of household status was created in 1951 by Congress through the Revenue Act of 1951.^[3] It was created to provide tax relief to single-parent households, who previously faced the same tax rates as single people without children despite the additional financial obligations inherent in raising children.^[3]^[4] It did this, in effect, by extending a "portion of the tax benefits that two-parent families received under the marital income splitting regime adopted nationally in 1948".^[5]

Original proposal

Family Security Act (FSA)

The FSA child benefit compared to the existing child tax credit

The FSA earned income tax credit

To fund the child allowance, Romney proposed:

Simplifying and reducing the earned income tax credit (EITC) (see chart)
Modifying Supplemental Nutrition Assistance Program (SNAP, colloquially referred to as the food stamps program) eligibility rules
Eliminating Temporary Assistance for Needy Families
Eliminating the head of household filing status
Eliminating the child and dependent care credit
Eliminating the state and local tax deduction

Romney described most of these changes as "consolidat[ing] overlapping and often duplicative federal policies" into the child allowance.^[1] He also advertises that the reformed EITC would largely eliminate marriage penalties that exist under the current EITC (however, two people, each with dependents of their own, could still face a penalty if they married).

Second proposal

Family Security Act 2.0 (FSA 2.0)

The modified child allowance in the FSA 2.0 compared to the existing child tax credit

More rapid phase-in than existing child tax credit

In 2022, Romney released a second version of his plan, called the Family Security Act 2.0, which included several changes:

Including a phase-in for families with very low incomes
Removing the elimination of Temporary Assistance for Needy Families
Substantially restructuring the way in which benefits are administered

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The Center on Budget and Policy Priorities estimates that the number of children living in poverty would be reduced by roughly 1.3 million under the plan, and roughly 20 million children in families making less than $50,000 would be left better off.^[10] However, because the plan includes substantial cuts to the earned income tax credit, as well as the elimination of the head of household filing status, roughly 10 million children would live in families who would see the value of their benefits decreased.^[10]

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References

^ ^a ^b "The Family Security Act" (PDF). Office of US Senator Mitt Romney. February 2021. Archived (PDF) from the original on August 25, 2022.
^ York, Erica; Watson, Garret (February 5, 2021). "Sen. Romney's Child Tax Reform Proposal Aims to Expand the Social Safety Net and Simplify Tax Credits". Tax Foundation. Archived from the original on August 6, 2022.
^ ^a ^b Cite error: The named reference Goldin was invoked but never defined (see the help page).
^ Cite error: The named reference :1 was invoked but never defined (see the help page).
^ Steuerle, C. Eugene (April 15, 1997). "Taxation of the Family: Testimony before the House Ways and Means Committee" (PDF). Urban Institute. Archived (PDF) from the original on July 29, 2022. Retrieved September 18, 2022.
^ "The Family Security Act 2.0" (PDF). Office of US Senator Mitt Romney. June 2022. Archived (PDF) from the original on August 25, 2022.
^ "How Would a Child Benefit Under the FamilySecurity Act (FSA) 2.0 Compare to the Child Tax Credit?". Congressional Research Service. August 2, 2022. Archived from the original on August 3, 2022.
^ Orr, Robert; McCabe, Joshua (June 15, 2022). "Analysis of the Family Security Act 2.0". Niskanen Center. Archived from the original on June 29, 2022.
^ Bruenig, Matt (July 6, 2022). "The New Romney Benefit Will Be an Administrative Mess". People's Policy Project. Archived from the original on August 7, 2022. Retrieved September 19, 2022.
^ ^a ^b Marr, Chuck; Cox, Kris; Hingtgen, Stephanie; Sherman, Arloc; Calame, Sarah; Cook, Jabari (July 6, 2022). "Romney Child Tax Credit Proposal Is Step Forward But Falls Short, Targets Low-Income Families to Pay for It" (PDF). Center on Budget and Policy Priorities. Archived (PDF) from the original on July 6, 2022.
^ Sherman, Arloc; Marr, Chuck; Hingtgen, Stephanie (September 23, 2021). "Earnings Requirement Would Undermine Child Tax Credit's Poverty-Reducing Impact While Doing Virtually Nothing to Boost Parents' Employment". Center on Budget and Policy Priorities. Archived from the original on September 7, 2022.
^ Cohen, Rachel M. (August 30, 2022). "The expanded child tax credit kept 4 million kids out of poverty. Can it come back?". Vox. Archived from the original on August 31, 2021. {{cite web}}: |archive-date= / |archive-url= timestamp mismatch; August 31, 2022 suggested (help)

[:0-1] "The Family Security Act" (PDF). Office of US Senator Mitt Romney. February 2021. Archived (PDF) from the original on August 25, 2022.

[2] York, Erica; Watson, Garret (February 5, 2021). "Sen. Romney's Child Tax Reform Proposal Aims to Expand the Social Safety Net and Simplify Tax Credits". Tax Foundation. Archived from the original on August 6, 2022.

[Goldin-3] Cite error: The named reference Goldin was invoked but never defined (see the help page).

[:1-4] Cite error: The named reference :1 was invoked but never defined (see the help page).

[5] Steuerle, C. Eugene (April 15, 1997). "Taxation of the Family: Testimony before the House Ways and Means Committee" (PDF). Urban Institute. Archived (PDF) from the original on July 29, 2022. Retrieved September 18, 2022.

[6] "The Family Security Act 2.0" (PDF). Office of US Senator Mitt Romney. June 2022. Archived (PDF) from the original on August 25, 2022.

[7] "How Would a Child Benefit Under the FamilySecurity Act (FSA) 2.0 Compare to the Child Tax Credit?". Congressional Research Service. August 2, 2022. Archived from the original on August 3, 2022.

[8] Orr, Robert; McCabe, Joshua (June 15, 2022). "Analysis of the Family Security Act 2.0". Niskanen Center. Archived from the original on June 29, 2022.

[9] Bruenig, Matt (July 6, 2022). "The New Romney Benefit Will Be an Administrative Mess". People's Policy Project. Archived from the original on August 7, 2022. Retrieved September 19, 2022.

[CBPP-FSA2.0-10] Marr, Chuck; Cox, Kris; Hingtgen, Stephanie; Sherman, Arloc; Calame, Sarah; Cook, Jabari (July 6, 2022). "Romney Child Tax Credit Proposal Is Step Forward But Falls Short, Targets Low-Income Families to Pay for It" (PDF). Center on Budget and Policy Priorities. Archived (PDF) from the original on July 6, 2022.

[11] Sherman, Arloc; Marr, Chuck; Hingtgen, Stephanie (September 23, 2021). "Earnings Requirement Would Undermine Child Tax Credit's Poverty-Reducing Impact While Doing Virtually Nothing to Boost Parents' Employment". Center on Budget and Policy Priorities. Archived from the original on September 7, 2022.

[12] Cohen, Rachel M. (August 30, 2022). "The expanded child tax credit kept 4 million kids out of poverty. Can it come back?". Vox. Archived from the original on August 31, 2021. {{cite web}}: |archive-date= / |archive-url= timestamp mismatch; August 31, 2022 suggested (help)

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