Biden's $1.9 Trillion Stimulus Package Could Cut Taxes by $3,100

Congress has pushed President Joe Biden's pandemic stimulus package to give Americans another dose of relief. The legislation just passed the House and now on its way to the Senate, ready for Biden's signature before March 14.

According to the Urban-Brookings Tax Policy Center, additional proposals in the bill will provide an average household tax savings of $3,100.

The $1.9 trillion legislation will provide tax relief, besides providing up to $1,400 incentive, extend unemployment benefits and more funding for the vaccine. US citizens are expected to get more of tax money from the IRS to help pay off debt, where income taxes will be collected on a dollar-for-dollar basis.

Around 66% of the tax savings will go to households with annual incomes below $91,000, while, higher-income families, who receive $164,000 annually will get about 11% of the proposed benefits.

Under the proposed plan, Low-income parents will be able to claim $3,600, up from from $2,000 for children under 6 and $3,000 for children under 18.