Democrats on Thursday unveiled a $1,000 tax credit for working-parent families, while also offering a $2,000 refundable tax credit.
The proposal was a direct response to the GOP tax plan, which Republicans have said would raise $1 trillion by 2027.
“Today’s tax plan offers families the opportunity to create more wealth and build a better life by helping families take more control of their lives and their finances,” said Sen. Patty Murray, D-Wash.
“This credit would be refundable for families who earn $400,000 a year or more.
Families would also have the option of a $300 credit for their first $3,000 of income.
The plan would provide an additional $500 for families with two or more children.”
The bill also would expand the Child Tax Credit to families making up to $400 the average income of a married couple with one child.
The credit would go up to a maximum of $1.6 million for married couples with two children.
The House bill would provide $1 million in refundable credits to families earning up to or less than $200,000, while the Senate plan would give them up to an additional half-million dollars in tax credits.
The bill would also provide $300 for families in a married-couple family with two adults, $1 for married-Couple family, and $500 in the event of a single parent.
Democrats also introduced an additional tax credit of $200 for families earning less than the average family income.
The House bill, which also includes a $200 credit for single parents, does not include a full refundable credit.
House Speaker Paul Ryan, R-Wis., said in a statement that the tax credits would help “help people with modest incomes and lower incomes to invest in their retirement, invest in a child’s education and start a family.”
The House GOP tax bill is expected to pass the House this week.
Democrats have been working to pass a tax bill after the last attempt was scuttled by the Senate in early April.
Republicans have insisted that their bill would have a larger impact on the economy and lower taxes for middle-income Americans.