WASHINGTON—U.S. Senator Mitt Romney (R-UT) introduced the Family Security Act—pro-family, pro-life, and pro-marriage legislation that would modernize and streamline antiquated federal policies into an expanded Child Tax Credit for working families. The bill is fully paid for by consolidating existing federal spending, increases the Child Tax Credit to $4,200 for each young child and $3,000 for each school-aged child, and creates a new $2,800 tax credit for expecting parents. While prior iterations have been released as a framework, this marks the first time that the Family Security Act has been introduced with bill text.
“When the Tax Cuts and Jobs Act of 2017 expires next year, the Child Tax Credit will be cut in half—leaving federal family policies inadequate, unpredictable, and scattered across the tax code,” Senator Romney said. “My Family Security Act solves this by generously supporting families without adding a penny to the national debt. It is my hope that this legislation will serve as a starting point during tax negotiations next year. We must renew our commitment to support families raising children, and I urge my colleagues of the next Congress to do so in a fiscally responsible manner.”
Background:
How the Family Security Act works:
- Increases the CTC amount to $4,200 for families with a child between ages 0-5 and $3,000 for families with a child between ages 6-17.
- Families may claim the credit for up to six children annually, and can choose to receive the credit in advanced monthly payments ($350 per month for a child ages 0-5 and $250 for a child ages 6-17).
- Establishes a $2,800 tax credit for pregnant mothers, which families can also receive in advanced monthly payments starting at 20 weeks.
- A family must have earned at least $20,000 to receive the full CTC amount, or at least $10,000 for the full credit during pregnancy. The earnings thresholds will be annually indexed to inflation. Families earning less than the earnings thresholds will receive an amount proportional to their earnings.
- A parent, and each claimed child for the CTC, must have an SSN.
- The credits are reduced by $50 for every $1,000 above the income phaseout thresholds of $200,000 for single-filers and $400,000 for joint-filers. Any overpayments or underpayments would be reconciled through the IRS after filing year-end taxes.
- Simplifies the Earned Income Tax Credit (EITC) by consolidating the family portion of the EITC to not vary based on the number of dependents, but separately maintains the adult dependent component of the EITC to ensure no family earns less than the EITC in its current form.
Benefits of the Family Security Act:
- Supports families from pregnancy through childhood;
- Encourages work;
- Promotes marriage;
- Provides equal treatment for both working and stay-at-home parents;
- Fully offsets the cost of the proposal by reforming and consolidating antiquated federal programs; and
- Creates a baby bonus that can be used to support paid time off after birth.
“We applaud Sen. Romney for introducing the Family Security Act. Building a culture of life takes creativity and rethinking the status quo. The Family Security Act takes great strides towards this culture by providing support for parents of unborn children. Thank you, Sen. Romney for working to find real solutions to help parents as they prepare for the arrival of their babies.” – Hon. Marilyn Musgrave, Vice President of Government Affairs, Susan B. Anthony Pro-Life America
“March for Life Action is grateful for Senators Romney’s effort to actively support children inside and outside the womb along with their families through the Family Security Act. We at March for Life Action will continue to work alongside lawmakers to cultivate a culture of life, where both mom and baby lead lives of flourishing.” – Jeanne F. Mancini, President, March for Life Action
The Family Security Act is endorsed by: Susan B. Anthony Pro-Life America, National Right to Life, American Principles Project, Americans United for Life, March for Life, Concerned Women for America, CatholicVote, Lutheran Center for Religious Liberty, Democrats for Life, and Feminists for Life of America.
Full text of the Family Security Act can be found here. A one-pager can be found here.