Overview
Title
To provide monthly payments for eligible pregnant women and parents to improve the ability of families to provide for their children and other family members, and for other purposes.
ELI5 AI
The FISC Act wants to give money every month to pregnant moms and parents to help them care for their kids, but it also stops another type of money help some families used to get before.
Summary AI
H.R. 1308, also known as the "Family Income Supplemental Credit Act" or the "FISC Act," aims to help families by providing monthly payments to eligible pregnant women and parents. Pregnant women can receive $800 per month, while payments for eligible children are set at $400 for kids under 6 years old and $250 for those aged 6 to 17. A 20% increase in payments is available for married beneficiaries, and the payments start phasing out for higher-income families. Importantly, the bill also calls for repealing the current child tax credit.
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AnalysisAI
General Summary of the Bill
The proposed legislation, known as the “Family Income Supplemental Credit Act” or the “FISC Act,” is designed to grant monthly financial assistance to eligible pregnant women and parents to help families better sustain their children and associated family needs. Primarily, it provides a monthly payment to pregnant women who have been pregnant for at least 20 weeks and to caregivers of eligible children under 18. The payment amounts vary, with pregnant women receiving $800 monthly, caregivers of children under six receiving $400, and those of children six and older receiving $250. Additionally, married recipients receive a 20 percent payment increase. The bill also proposes repealing the existing child tax credit, with financial adjustments applied to other connected sections of the Internal Revenue Code.
Summary of Significant Issues
The bill, while aiming to offer financial relief, raises notable concerns. It does not set a clear limit on the number of beneficiaries or detailed criteria for eligibility, which may lead to excessive government spending. The provision of a "marriage bonus" is potentially seen as discriminatory against single parents. Furthermore, the reliance on self-reported data for eligibility increases the risk of fraudulent claims. The bill's language, especially regarding income phase-out calculations, is technically complex and may deter understanding among the general public. It establishes a new Bureau within the Social Security Administration, raising concerns regarding additional government expenditure without clarity on the cost-benefit ratio. The repeal of the child tax credit without transitional financial support could adversely impact families that have relied on this credit.
Impact on the Public
The bill's broad initiatives could be well-received by families struggling with the economic burden of caregiving, offering a reliable source of monthly income. However, there is a potential negative impact on families previously dependent on the child tax credit who may experience financial strain during the transition. The complexities involved in calculating tax-related changes and the new supplemental benefits may lead to confusion, especially for those without access to financial advice or resources.
Impact on Specific Stakeholders
Pregnant Women and Parents: The introduction of monthly payments could provide much-needed financial support for healthcare, childcare, and daily expenses. However, the elimination of the child tax credit could offset these benefits for some families.
Single Parents: The marriage bonus might be perceived as discriminatory, potentially disadvantaging single parents who receive less support.
Low-Income Families: While the bill aims to aid economically needy families, the lack of stringent checks might mean resources are insufficiently targeted.
Tax Professionals and Legal Advisors: These stakeholders are likely to face increased demands for help in navigating the new rules and transitioning off the child tax credit.
Given these considerations, the bill's potential for support and criticism is multifaceted, with numerous implications both beneficial and adverse. Addressing these key concerns, while refining the bill's details, could greatly enhance its effectiveness and public reception.
Financial Assessment
The Family Income Supplemental Credit Act, or the "FISC Act," introduces a significant financial assistance program aimed at aiding eligible pregnant women and parents. The monthly payments outlined in the bill include a provision of $800 for pregnant women, which serves as a direct financial boost for expectant mothers. Additionally, parents of eligible children can receive either $400 per month for children under 6 years old or $250 for children aged between 6 and 17 years.
One of the key elements in the financial structuring of the bill is the marriage bonus, which provides a 20% increase in monthly payments for married beneficiaries. While this incentivizes marriage, it has raised concerns regarding unequal treatment of single individuals, as identified in the issues list.
For higher-income families, the financial benefits begin to phase out. Specifically, the bill decreases payments by $16.67 for every $1,000 of income that exceeds $125,000 for single individuals or $250,000 for those filing a joint tax return. This phase-out approach is designed to concentrate benefits on lower and middle-income families but incorporates complexities that could be hard for average citizens to fully grasp.
Importantly, the bill also proposes the repeal of the existing child tax credit, which could significantly impact families who depend on this financial support. While the new monthly payments are introduced, the transition away from an established tax credit presents risks of financial strain, especially for those accustomed to the tax credit format and not the new monthly payment system.
The creation of a new Bureau within the Social Security Administration, charged with the administration and monitoring of these payments, entails further government expenditure without clear detailing of costs versus benefits. This new establishment is intended to streamline operations and ensure efficient implementation, yet it compounds the financial complexity and expenditure of the bill.
Moreover, the bill extensively relies on self-reported data, such as income and marital status, raising the risk of fraudulent claims. The absence of detailed mechanisms to prevent such misuse necessitates careful consideration to avoid potential financial mismanagement.
Overall, the financial allocations and reformulations proposed in the FISC Act reflect a notable shift in how family and child financial support could be structured in the United States. The bill presents an ambitious plan to reallocate resources, yet it must address the highlighted concerns to ensure fair and effective delivery of its financial promises.
Issues
The bill introduces a new financial assistance program, but lacks specific eligibility criteria or a cap on the number of beneficiaries, potentially leading to excessive government spending. (Section 2)
The bill's provision of a 'marriage bonus' could be seen as discriminatory against single individuals, leading to concerns of unequal treatment under the law. (Section 2(d)(2))
The repeal of the child tax credit without providing any support measures could result in financial strain for families reliant on this credit. (Section 3)
Without clear details on preventing fraudulent claims, the heavy reliance on self-reported data like income and marital status increases the risk of misuse of funds. (Section 2)
The complexity and technicality of language used in the bill, particularly concerning the phase-out of payments based on adjusted gross income, could be difficult for average citizens to understand. (Section 2(d)(3))
The establishment of a new Bureau within the Social Security Administration suggests additional government spending, yet the bill does not detail the expected costs and benefits of this new entity. (Section 2(g))
The repeal of the child tax credit involves changes across multiple sections of the Internal Revenue Code, potentially leading to confusion without proper guidance for implementation. (Section 3)
There is an absence of clear guidelines on how overpayments or repayment recoveries will be handled, risking financial mismanagement. (Section 2)
The possibility of multiple caregivers applying for benefits may lead to disputes over payment allocation, affecting continuity and fairness of benefit distribution. (Section 2(e))
Sections
Sections are presented as they are annotated in the original legislative text. Any missing headers, numbers, or non-consecutive order is due to the original text.
1. Short title Read Opens in new tab
Summary AI
The section of the bill specifies the official short title of the act as the “Family Income Supplemental Credit Act” or the “FISC Act.”
2. Family income supplements Read Opens in new tab
Summary AI
The section outlines a program where pregnant women and caregivers of eligible children can apply for monthly financial support through the Social Security Administration. It specifies the eligibility criteria, application process, and payment amounts, as well as the responsibilities of the Social Security Commissioner to administer these benefits and report on the program's activities.
Money References
- WITH RESPECT TO A PREGNANCY.—The amount of the monthly payment to a beneficiary under this section with respect to a pregnancy shall be $800.
- WITH RESPECT TO AN ELIGIBLE CHILD.—The amount of the monthly payment to a beneficiary under this section with respect to each eligible child shall be— (i) $400, if the child has not attained 6 years of age; or (ii) $250, if the child has attained 6 years of age.
- (3) PHASE-OUT.—The total amount of the monthly payment to a beneficiary under the preceding provisions of this subsection shall be decreased (but not below zero) by $16.67 for each whole $1,000 by which— (A) the adjusted gross income of the beneficiary for the then most recently ended taxable year of the beneficiary exceeds $125,000; or (B) if the beneficiary and the spouse of the beneficiary filed a joint return of Federal income tax for that taxable year, the total adjusted gross income of the beneficiary and the spouse of the beneficiary for the taxable year exceeds $250,000. (4) LIMITATION.—The total amount of the monthly payment to a beneficiary under the preceding provisions of this subsection shall not exceed 1⁄12 of the total adjusted gross income of the beneficiary and the spouse (if any) of the beneficiary for the then most recently ended taxable year of the beneficiary.
3. Repeal of child tax credit Read Opens in new tab
Summary AI
The section of the bill repeals the child tax credit and makes various conforming amendments to other sections of the Internal Revenue Code and other related statutes to remove references to section 24, which previously covered the credit. The changes will take effect for taxable years starting after a specified date, with transition rules for certain taxable years.