Governor Pedro Pierluisi thanked Washington DC parliamentary leaders for including Puerto Rico in measures that will bring significant economic benefits to Puerto Rican families if it becomes legal.
“I thank the Speaker of the Federal House of Representatives, Nancy Pelosi, the Chairman of the Ways and Means Commission, Richard Neal, and Majority Leader Steny Hoyer, because their leadership and dedication to Puerto Rico did justice to the thousands of Puerto Rico residents. This by including the island in the total expansion of the program Child Tax Credit (CTC) and the match with a comprehensive local Earned Income Credit (EITC) program that is part of the budget reconciliation project, “Pierluisi said in written statements.
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- Currently, current law states that $ 2,000 will be received for children under 17, but residents of Puerto Rico have received unfair and disproportionate treatment for years as the CTC applies to families with more than three dependent children and after approval of this project that will change. The measure, sponsored by the leadership of the Democratic Majority in the House of Representatives, no longer restricts the rights of Puerto Rican families because as of January 1, 2022, the restriction of three children per family will not apply to Puerto Rico to receive fullness from CTC benefits.
- The new project notes that by 2021, $ 3,600 will be received for children under six and $ 3,000 for children over the age of six but up to 18 years old. Puerto Rico applies for this.
- Payments would be progressively reduced for individuals making more than $ 75,000 or couples making more than $ 150,000.
- Puerto Rico will receive restitution from Congress for the expansion of the EITC. In addition, if it chooses to expand its current EITC, the Treasury will provide a match of up to three times the current cost of the Puerto Rico EITC, which would result in an increase in the employment rate and provide tax breaks to all members of the workforce. .
- The piece of legislation also includes the third round of economic stimulus payments of $ 1,400 for each family member, but the credit will be completely eliminated at $ 100,000 per year for individual taxpayers, $ 150,000 for heads of household, and $ 200,000 for households. their contributions together.
The governor assured that the measure’s approval is a historic step forward in the demand for equal rights for Puerto Ricans. He also predicted that Puerto Rico’s uptake and full coverage of the CTC by dependent children will help the island’s economic growth.
Pierluisi also thanked the efforts of the resident commissioner in Washington, Jenniffer González Colón. “Thousands of people will benefit from these credits, which will undoubtedly be a fundamental and radical change for both our families and our economy,” said the Chief Executive Officer.
For her part, PRFAA director Carmen Feliciano also welcomed the congressional movement. “Legislation passed in Congress provides much-needed assistance to children and families who daily struggle with economic hardship. The Puerto Rico government is very grateful for the efforts that Congressional leaders have made on behalf of our most needy citizens, ”said Feliciano.
According to data from the Center for Poverty and Social Policy at Columbia University (CPSP), President Joe Biden’s economic aid agenda, which includes this per-child credit increase, would cut the credit rate in half. Child poverty in the United States.