Governor Pedro Pierluisi Urrutia thanked the chamber leadership in Washington DC for including Puerto Rico in measures that will represent significant economic benefits for Puerto Rican families from becoming law.
“I thank the Speaker of the Federal House of Representatives, Nancy Pelosi, the Chairman of the Media and Arbitration Commission, Richard Neal, and Majority Leader Steny Hoyer, for their leadership and commitment to Puerto Rico, yesterday at the night, once again, they did justice to thousands of Puerto Rican residents by including him on the island in the full extension of the program. Children’s tax credit (CTC) and pareo it to an expanded Local Reported Revenue Credit (EITC) program that is in the budget reconciliation project, ”Pierluisi said in written statements.
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- Currently, the current law stipulates that $ 2,000 be received for children under the age of 17 but for years Puerto Rican residents have received unfair and disproportionate treatment as the CTC applies to families with more than three dependent children and after the approval of this project this will change. The measure, favored by the leadership of the Democratic Majority in the House of Representatives, no longer restricts the rights of Puerto Rican families because from January 1, 2022 it will not apply the limitation of three children per family because Puerto Rico receive the full benefits of CTC.
- The new project states that in 2021 $ 3,600 will be received for children under six and $ 3,000 for those over six but up to 18 years old. Puerto Rico applies for this.
- Payments would be gradually reduced for individuals earning more than $ 75,000 or couples earning more than $ 150,000.
- Puerto Rico will receive congressional refunds for the expansion of the EITC. Also, if it chooses to expand its current EITC, the Treasury will provide a consideration of up to three times the current cost of the EITC of Puerto Rico which would result in an increase in labor participation and provide tax credits to all members. of the labor force.
- The piece of legislation also includes the third round of $ 1,400 economic stimulus payments for each family member, but the credit is completely eliminated at $ 100,000 a year for individual taxpayers, $ 150,000 for heads of households, and $ 200,000 for couples who find their contributions together.
The governor assured that the passage of the measure is a historic step forward in claiming equal rights for Puerto Ricans. He also projected that the inclusion of Puerto Rico and full CTC coverage for dependent children, will foster the island’s economic growth.
Pierluisi also thanked the efforts of Washington-based commissioner Jenniffer González Colom. “Thousands of people will benefit from these loans which will no doubt be a fundamental and radical change for both our families and our economy,” the Chief Executive said.
For her part, the director of PRFAA, Carmen Feliciano, was also pleased with the congressional move. “The legislation presented to Congress provides much-needed relief to children and families who are struggling with economic adversity on a daily basis. The Puerto Rican government is very grateful for the efforts of congressional leaders to benefit our most needy citizens. Feliciano said.
According to Columbia University’s Center for Poverty and Social Policy (CPSP), President Joe Biden’s economic relief agenda, which includes this increase in child credit, would be halved. the child poverty rate in the United States.