In the News
ONE YEAR LATER: The American Rescue Plan Lowered Taxes for Working Families by Thousands. Republicans Want to Raise Them Again.
If you look at the topline numbers, President Biden’s American Rescue Plan has been an unqualified success. Since it was signed into law one year ago today, the law has made real progress for people across the country: unemployment claims are down 70%, child poverty is at the lowest rate ever recorded, home foreclosures are at just one-third of pre-pandemic levels, and the number of people who are behind on their credit card bills has hit a new record low.
So how did the American Rescue Plan make such a dramatic difference in people’s lives? The answer is simple: by providing tax cuts and direct economic relief for working- and middle-class families.
Taken together, the American Rescue Plan’s stimulus checks, Earned Income Tax Credit, and Child Tax Credit meant an average of more than $3,500 in the pockets of the poorest 20% of Americans, while low-income households with children saved more than $7,700 on their taxes. For working families grappling with the pandemic, facing unemployment or eviction, or wondering how they were going to put food on the table for their kids, these are life-changing sums of money.
When compared to a record like that, it’s no wonder Mitch McConnell so desperately wanted to keep the GOP agenda of middle-class tax hikes and raised premiums a secret. Not only do Rick Scott and Marco Rubio want to raise taxes on more than 40% of Floridians if Republicans take back control of Congress – they think that people making less than $100,000 per year should bear the brunt of that increase. And just this week, their colleague Ron Johnson confirmed that Republicans want to repeal the Affordable Care Act to strip healthcare coverage from millions of Americans, and raise premiums for seniors, women, and everyone else who is lucky enough to have health insurance after they are done.
“One year after President Biden’s American Rescue Plan was signed into law, the contrast could not be clearer: President Biden and Democrats have cut taxes and made healthcare more affordable for working families, while the Republican Party thinks that you should be paying even more,” said Florida Democratic Party spokesperson Travis Reuther. “If Republicans regain power in Washington, they have said they will immediately try to undo the progress of the American Rescue Plan over the past year, and they will start by passing higher taxes and higher premiums on working-class Americans so that their billionaire friends and wealthy corporations don’t have to pay their fair share. We can’t let that happen.”