Summary: Take Responsibility for Workers and Families Act would provide families with emergency “economic assistance payments”. The House's version of the bill as of Monday, March 23rd2020 would provide individuals with an advance refundable credit worth $1,500 ($2,500 for married couples) plus $1,500 for qualifying dependent children. These payments would begin to phase out starting at $75,000 in AGI ($150,000 for married couples and $112,500 for heads of household). PWBM projects that the rebates would cost $400 billion.
Table 1: Distribution of Federal Tax Change Under Take Responsibility for Workers and Families Act
| Income group | Average benefit | Share receiving rebate | Percent change in after-tax income | Share of benefit | Share of federal taxes paid | |
|---|---|---|---|---|---|---|
| Under current law | Under the proposal | |||||
| Bottom quintile | $1,835 | 100.0% | 61.0% | 21.7% | 0.1% | -3.4% |
| Second quintile | $2,540 | 100.0% | 11.1% | 23.1% | 2.3% | -1.0% |
| Middle quintile | $2,605 | 100.0% | 6.1% | 22.8% | 10.3% | 8.3% |
| Fourth quintile | $2,870 | 97.2% | 3.7% | 21.7% | 19.2% | 18.7% |
| 80-90% | $3,065 | 82.5% | 2.6% | 9.5% | 14.9% | 15.8% |
| 90-95% | $795 | 55.3% | 0.5% | 1.2% | 10.9% | 12.5% |
| 95-99% | $0 | 0.0% | 0.0% | 0.0% | 16.3% | 19.0% |
| 99-99.9% | $0 | 0.0% | 0.0% | 0.0% | 12.7% | 14.8% |
| Top 0.1% | $0 | 0.0% | 0.0% | 0.0% | 13.1% | 15.2% |
Note: “Income” is defined as AGI plus: above-the-line deductions, nontaxable interest income, nontaxable Social Security benefits, nontaxable pensions and annuities, employer-side payroll taxes, and corporate liability. Note that this definition excludes transfer income and thus understates low-income tax units' income.