The US DHHS published a study of the influence of these payments on the number of people living in destitution in February 2022. The data indicated that the assistance payments kept millions of families out of destitution, particularly those with children.
Only two stimulus check programs kept 10.80 million people out of poverty, and these two programs would be simple to recreate for politicians looking to alleviate the economic hardships that many people are now experiencing. According to a February HHS study, economic impact payments provided under the ARP Act kept an estimated 7.9 million individuals out of poverty.
Stimulus Checks Helped Parents Provide For Their Kids
An additional 2.90 M people have been lifted out of poverty thanks to the enhanced Child Tax Credit. 1.80 million of the 2.9 million persons were youngsters.
This does not account for the effects of other EIP measures, such as increased unemployment benefits, which helped to boost millions of people’s earnings. The stimulus payments and advance Child Tax Credits accomplished two goals:
-The Stimulus Check programs gave qualified adults and dependents $1,400 in financial aid.
-The advance Child Tax Credit Stimulus Check boosted the previous Child Tax Credit to $3,600 for children under the age of six and $3,000 for children aged six and beyond. This was an increase from the prior maximum of $2,000 under the old guidelines. The expanded credit also made the entire amount refundable, whereas before it was only $1,400.
Rather than just decreasing a tax bill to zero, a refundable credit can offer more money back to taxpayers than they paid in taxes. While the existing Child Tax Credit was only available when filing tax returns, the advance Child Tax Credits were paid out at a rate of $300 per month or $250 per month from July to December.