End Child Poverty Act

Subjects: Taxation

Summary:  <p><strong>End Child Poverty Act</strong></p> <p>This bill replaces the earned income tax credit and the child tax credit with a universal child assistance program. The program establishes a set monthly assistance payment for each child of a taxpayer less than 19 years of age.</p> <p>The bill establishes an Office of Universal Child Assistance in the Social Security Administration for purposes of administering the assistance program. </p> <p>The bill also allows a $600 refundable tax credit for adult dependents and certain family members.</p>

<html><body><pre>[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2540 Introduced in House (IH)]

&lt;DOC&gt;






118th CONGRESS
  1st Session
                                H. R. 2540

   To establish a universal child assistance program, and for other 
                               purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 6, 2023

     Ms. Tlaib (for herself, Mr. Garcia of Illinois, and Ms. Omar) 
 introduced the following bill; which was referred to the Committee on 
                             Ways and Means

_______________________________________________________________________

                                 A BILL


 
   To establish a universal child assistance program, and for other 
                               purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``End Child Poverty Act''.

SEC. 2. UNIVERSAL CHILD ASSISTANCE PROGRAM.

    (a) Definitions.--In this section:
            (1) Commissioner.--The term ``Commissioner'' means the 
        Commissioner of Social Security.
            (2) Deputy commissioner.--The term ``Deputy Commissioner'' 
        means the Deputy Commissioner of the Office of Universal Child 
        Assistance.
            (3) Qualifying child.--The term ``qualifying child'' means, 
        with respect to a month, an individual who--
                    (A) resides in the United States;
                    (B) is--
                            (i) a citizen or national of the United 
                        States; or
                            (ii) a qualified alien (as defined in 
                        section 431 of the Personal Responsibility and 
                        Work Opportunity Reconciliation Act of 1996 (8 
                        U.S.C. 1641)); and
                    (C) is less than 19 years old on the last day of 
                such month.
    (b) Establishment of Office of Universal Child Assistance.--
            (1) In general.--There is established within the Social 
        Security Administration an office to be known as the Office of 
        Universal Child Assistance. The Office shall be headed by a 
        Deputy Commissioner who shall be appointed by the Commissioner 
        of Social Security.
            (2) Responsibilities of deputy commissioner.--The 
        Commissioner, acting through the Deputy Commissioner, shall be 
        responsible for--
                    (A) hiring personnel and making employment 
                decisions with regard to such personnel;
                    (B) issuing such regulations as may be necessary to 
                carry out the purposes of this section;
                    (C) entering into cooperative agreements with other 
                agencies and departments to ensure the efficiency of 
                the administration of the program;
                    (D) determining eligibility for child assistance 
                payments under subsection (c);
                    (E) making timely child assistance payments to 
                qualified children in accordance with this section;
                    (F) establishing and maintaining a system of 
                records relating to the administration of this section;
                    (G) preventing fraud and abuse relating to child 
                assistance payments;
                    (H) providing information on request regarding 
                eligibility requirements, the application process, 
                payment amounts, and limitations on payments; and
                    (I) tailoring culturally and linguistically 
                competent education and outreach toward increasing 
                utilization rates of payments under this section.
            (3) Availability of data.--The Commissioner shall make 
        available to the Deputy Commissioner such data as the 
        Commissioner determines necessary to enable the Deputy 
        Commissioner to effectively carry out the responsibilities 
        described in paragraph (2).
    (c) Child Assistance Payments.--
            (1) In general.--For every month beginning after the date 
        of enactment of this Act, the Commissioner shall pay to each 
        qualified child who has in effect an application approved under 
        subsection (d) a child assistance payment in an amount equal to 
        the child assistance amount for the month (as determined under 
        paragraph (2)).
            (2) Child assistance amount.--For purposes of paragraph 
        (1), the child assistance amount for a month shall be an amount 
        equal to \1/12\ of the excess of--
                    (A) the annual poverty guideline for the calendar 
                year preceding the calendar year in which such month 
                occurs (as updated annually in the Federal Register by 
                the Department of Health and Human Services under the 
                authority of section 673(2) of the Omnibus Budget 
                Reconciliation Act of 1981) as applicable to a two-
                person household, over
                    (B) the annual poverty guideline for such preceding 
                calendar year applicable to a single individual.
            (3) Representative payees.--Section 205(j) of the Social 
        Security Act (42 U.S.C. 405(j)) shall apply to the payment of 
        child assistance payments under this section in the same manner 
        as such section 205(j) applies to the payment of benefits under 
        title II of such Act.
            (4) Penalties.--Section 208 of the Social Security Act (42 
        U.S.C. 408) shall apply with respect to child assistance 
        payments under this section in the same manner as such section 
        208 applies with respect to monthly insurance benefits under 
        title II of such Act.
    (d) Application.--
            (1) In general.--No child assistance payment shall be made 
        to an individual unless the Commissioner has approved an 
        application for such payment in accordance with the 
        requirements of this paragraph.
            (2) Application requirements.--An individual applying for a 
        child assistance payment as (or on behalf of) a qualifying 
        child under this section shall provide the Commissioner with an 
        application in such form and manner as the Commissioner shall 
        require, and such application shall include--
                    (A) the name, date of birth, and social security 
                number or taxpayer identification number of the 
                qualifying child; and
                    (B) such other information as the Commissioner 
                deems necessary.
            (3) Simultaneous application.--The Commissioner shall treat 
        an application for a social security account number for a 
        qualifying child as an application for a child assistance 
        payment under this section, unless the applicant affirmatively 
        indicates on such application an intent to opt out of such 
        child assistance payments.
            (4) Deemed applications.--In the case of any qualifying 
        child identified to the Commissioner under the data sharing 
        procedures described in section 6103(l)(23) of the Internal 
        Revenue Code of 1986 (as amended by subsection (e)) who has not 
        otherwise submitted an application for child assistance 
        payments under this section, the Commissioner shall treat such 
        qualifying child as having so applied, unless the applicant 
        affirmatively indicates to the Commissioner, under such 
        procedures as the Commissioner may establish, an intent to opt 
        out of such child assistance payments.
            (5) Term of application.--The Commissioner may provide that 
        an approval of an individual's application for a child 
        assistance payment under this subsection shall expire after a 
        specified number of months, after which the individual shall 
        not be eligible for a child assistance payment until a new 
        application is approved under this subsection.
    (e) IRS Data Sharing With Commissioner of Social Security.--Section 
6103(l) of the Internal Revenue Code of 1986 is amended by adding at 
the end the following new paragraph:
            ``(23) Disclosure of return information to social security 
        administration for purposes of child assistance payments.--The 
        Secretary shall, upon written request from the Commissioner of 
        Social Security, disclose to the Commissioner any available 
        taxpayer identity information from the individual master files 
        of the Internal Revenue Service that the Commissioner deems 
        relevant to identifying children of taxpayers or children who 
        are taxpayers who qualify for a child assistance payment under 
        section 2(c) of the End Child Poverty Act, including 
        information relating to--
                    ``(A) citizenship status of a child,
                    ``(B) age of a child, and
                    ``(C) country of residence of a child.''.
    (f) Income Disregard.--A child assistance payment made under this 
section shall not be taken into account as income and shall not be 
taken into account as resources for purposes of determining the 
eligibility of such individual or any other individual for benefits or 
assistance, or the amount or extent of benefits or assistance, under 
any Federal program or under any State or local program financed in 
whole or in part with Federal funds.
    (g) Appropriation.--There are appropriated to the Commissioner for 
fiscal year 2023 and each subsequent fiscal year such sums as are 
necessary to carry out this section.

SEC. 3. REPEAL OF CHILD TAX CREDIT AND EARNED INCOME TAX CREDIT.

    (a) Child Tax Credit.--Section 24 of the Internal Revenue Code of 
1986 is hereby repealed.
    (b) Earned Income Tax Credit.--Section 32 of such Code is hereby 
repealed.
    (c) Conforming Amendments.--
            (1) The table of sections for subpart A of part IV of 
        subchapter A of chapter 1 of subtitle A of such Code is amended 
        by striking the item relating to section 24.
            (2) The table of sections for subpart C of such part is 
        amended by striking the item relating to section 32.
            (3) Section 45R(f)(3)(B) of the Internal Revenue Code of 
        1986 is amended by inserting ``(as in effect on the day before 
        the date of enactment of the Universal Child Assistance Act of 
        2018)'' after ``section 24(d)(2)(C)''.
            (4) Section 25A(g)(2)(B) of such Code is amended by 
        striking ``, 32''.
            (5) Section 86(f) of such Code is amended by striking 
        paragraph (2).
            (6) Section 129(e)(2) of such Code is amended to read as 
        follows:
            ``(2) Earned income.--
                    ``(A) The term `earned income'--
                            ``(i) means--
                                    ``(I) wages, salaries, tips, and 
                                other employee compensation, but only 
                                if such amounts are includible in gross 
                                income for the taxable year, plus
                                    ``(II) the amount of the taxpayer's 
                                net earnings from self-employment for 
                                the taxable year (within the meaning of 
                                section 1402(a)), but such net earnings 
                                shall be determined with regard to the 
                                deduction allowed to the taxpayer by 
                                section 164(f), and
                            ``(ii) does not include any amounts paid or 
                        incurred by an employer for dependent care 
                        assistance to an employee.
                    ``(B) For purposes of subparagraph (A)--
                            ``(i) the earned income of an individual 
                        shall be computed without regard to any 
                        community property laws,
                            ``(ii) no amount received as a pension or 
                        annuity shall be taken into account,
                            ``(iii) no amount to which section 871(a) 
                        applies (relating to income of nonresident 
                        alien individuals not connected with United 
                        States business) shall be taken into account,
                            ``(iv) no amount received for services 
                        provided by an individual while the individual 
                        is an inmate at a penal institution shall be 
                        taken into account,
                            ``(v) no amount described in subparagraph 
                        (A) received for service performed in work 
                        activities as defined in paragraph (4) or (7) 
                        of section 407(d) of the Social Security Act to 
                        which the taxpayer is assigned under any State 
                        program under part A of title IV of such Act 
                        shall be taken into account, but only to the 
                        extent such amount is subsidized under such 
                        State program, and
                            ``(vi) a taxpayer may elect to treat 
                        amounts excluded from gross income by reason of 
                        section 112 as earned income.''.
            (7) Section 135(d)(1)(B) of such Code is amended by 
        striking ``32,''.
            (8) Section 152(f)(6)(B) of such Code is amended--
                    (A) in clause (iii), by striking ``, and'' and 
                inserting a period,
                    (B) by striking clauses (ii) and (iv), and
                    (C) by redesignating clause (iii) as clause (ii).
            (9) Section 501 of such Code is amended--
                    (A) in subsection (c)(26), by striking ``(as 
                defined in section 24(c)'' and inserting ``(as defined 
                in subsection (g))'', and
                    (B) by amending subsection (g) to read as follows:
    ``(g) Definitions.--
            ``(1) Agricultural.--For purposes of subsection (c)(5), the 
        term `agricultural' includes the art or science of cultivating 
        land, harvesting crops or aquatic resources, or raising 
        livestock.
            ``(2) Qualifying child.--
                    ``(A) In general.--For purposes of subsection 
                (c)(26), the term `qualifying child' means a qualifying 
                child of the taxpayer (as defined in section 152(c)) 
                who has not attained age 17.
                    ``(B) Exception for certain noncitizens.--The term 
                `qualifying child' shall not include any individual who 
                would not be a dependent if subparagraph (A) of section 
                152(b)(3) were applied without regard to all that 
                follows `resident of the United States'.''.
            (10) Section 995(f)(2)(C) of such Code is amended by 
        striking ``32,''.
            (11) Section 3402(f)(1) of such Code is amended by striking 
        subparagraph (C) and by redesignating subparagraphs (D) through 
        (F) as subparagraphs (C) through (E), respectively.
            (12) Section 4293 of such Code is amended by striking 
        ``chapter 32 (other than the taxes imposed by sections 4064 and 
        4121)''.
            (13) Section 6211(b)(4)(A) of such Code is amended by 
        striking ``24(d),'' and ``32,''.
            (14) Section 6213(g)(2) of such Code is amended--
                    (A) in subparagraph (L), by striking ``, 24, 32,'',
                    (B) by striking subparagraphs (F), (G), (I), (K), 
                (M), and (P) and by redesignating subparagraphs (H), 
                (J), (L), (N), (O), and (Q) as subparagraphs (F), (G), 
                (H), (I), (J), and (K), respectively, and
                    (C) by adding ``and'' at the end of subparagraph 
                (J).
            (15) Section 6402 of such code is amended by striking 
        subsection (m) and by redesignating subsection (n) as 
        subsection (m).
            (16) Section 6695(g)(2) of such Code is amended by striking 
        ``24,'' and `` or 32,''.
            (17) Section 1613(a) of the Social Security Act (42 U.S.C. 
        1382b(a)) is amended by striking paragraph (11).
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2022.

SEC. 4. REFUNDABLE TAX CREDIT FOR ADULT DEPENDENTS.

    (a) In General.--Subpart C of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by inserting before 
section 33 the following new section:

``SEC. 32A. ADULT DEPENDENT CREDIT.

    ``(a) Allowance of Credit.--In the case of an eligible individual, 
there shall be allowed as a credit against the tax imposed by this 
subtitle for the taxable year an amount equal to $600 for each 
qualifying dependent of the taxpayer.
    ``(b) Eligible Individual.--The term `eligible individual' means 
any individual if--
            ``(1) such individual is not a dependent for whom a 
        deduction is allowable under section 151 to another taxpayer 
        for any taxable year beginning in the same calendar year as 
        such taxable year, and
            ``(2) such individual is not a nonresident alien during 
        such taxable year.
    ``(c) Qualifying Dependent.--The term `qualifying dependent' means 
a dependent (as defined in section 152) who is over the age of 18.
    ``(d) Identification Number Requirement.--A qualifying dependent 
shall not be taken into account under subsection (a) unless the 
taxpayer includes the name, age, and TIN of the qualifying child on the 
return of tax for the taxable year.
    ``(e) Inflation Adjustment.--
            ``(1) In general.--In the case of any taxable year 
        beginning after 2023, the dollar amount in subsection (a) shall 
        be increased by an amount equal to--
                    ``(A) such dollar amount, multiplied by
                    ``(B) the cost-of-living adjustment determined 
                under section 1(f)(3) for the calendar year in which 
                the taxable year begins, determined by substituting 
                `calendar year 2022' for `calendar year 2016' in 
                subparagraph (A)(ii) thereof.
            ``(2) Rounding.--If any amount as adjusted under paragraph 
        (1) is not a multiple of $0.01, such amount shall be rounded to 
        the next lowest multiple of $0.01.''.
    (b) Conforming Amendment.--The table of sections for subpart C of 
part IV of subchapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by inserting after the item relating to section 32 the 
following new item:

``Sec. 32A. Adult dependent credit.''
    (c) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2022.

SEC. 5. REFUNDABLE TAX CREDIT FOR ADULTS AND FAMILIES.

    (a) In General.--Subpart C of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986, as amended by section 4, is 
amended by inserting after section 32A the following new section:

``SEC. 32B. CREDIT FOR ADULTS AND FAMILIES.

    ``(a) Allowance of Credit.--In the case of an eligible individual, 
there shall be allowed as a credit against the tax imposed by this 
subtitle for the taxable year $600 ($1200 in the case of a joint 
return).
    ``(b) Limitation Based on Adjusted Gross Income.--The amount of the 
credit allowed by subsection (a) shall be reduced by 5 percent of so 
much of the taxpayer's adjusted gross income as exceeds--
            ``(1) $40,000 in the case of a joint return, and
            ``(2) $20,000 in any other case.
    ``(c) Eligible Individual.--The term `eligible individual' means 
any individual if--
            ``(1) such individual (or, if the individual is married, 
        either the individual or the individual's spouse) has attained 
        age 19 but not attained age 65 before the close of the taxable 
        year,
            ``(2) such individual is not a dependent for whom a 
        deduction is allowable under section 151 to another taxpayer 
        for any taxable year beginning in the same calendar year as 
        such taxable year, and
            ``(3) such individual is not a nonresident alien during 
        such taxable year.
    ``(d) Identification Number Requirement.--No credit shall be 
allowed under this section to an eligible individual who does not 
include on the return of tax for the taxable year--
            ``(1) such individual's taxpayer identification number, and
            ``(2) if the individual is married (within the meaning of 
        section 7703), the taxpayer identification number of such 
        individual's spouse.
    ``(e) Inflation Adjustment.--
            ``(1) In general.--In the case of any taxable year 
        beginning after 2023, the dollar amounts in subsections (a) and 
        (b) shall be increased by an amount equal to--
                    ``(A) such dollar amount, multiplied by
                    ``(B) the cost-of-living adjustment determined 
                under section 1(f)(3) for the calendar year in which 
                the taxable year begins, determined by substituting 
                `calendar year 2022' for `calendar year 2016' in 
                subparagraph (A)(ii) thereof.
            ``(2) Rounding.--If any amount as adjusted under paragraph 
        (1) is not a multiple of $0.01, such amount shall be rounded to 
        the next lowest multiple of $0.01.''.
    (b) Conforming Amendment.--The table of sections for subpart C of 
part IV of subchapter A of chapter 1 of the Internal Revenue Code of 
1986, as amended by section 4, is amended by inserting after the item 
relating to section 32A the following new item:

``Sec. 32B. Credit for adults and families.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2022.
                                 &lt;all&gt;
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