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The ITEP (Institute on Taxation and Economic Policy) released a report and said US President Joe Biden’s $1.9 trillion American Rescue Plan would benefit millions of Americans, but it would have an outsized impact on the people who make up the poorest fifth of the population. The nonpartisan, nonprofit think tank that studies tax policy analyzed the proposal layout by the House Ways and Means Committee last week. It discovered that the average family income for the poorest 20% of America would jump by 33%, or $3,590, pre-tax between the stimulus checks and tax credit expansions. The large relative bump in income comes from a combination of the $1,400 stimulus checks and the expansion of the CTC (Child Tax Credit) and the EITC (Earned Income Tax Credit).

However, the combined cash and tax benefit would be similar for 95% of Americans, for the poorest 20%, who make an average of $10,900 a year. The finding says Biden’s stimulus plan would proportionally be a massive boost. The plan from Democrats in the House Ways and Means Committee would give $1,400 stimulus checks to individuals making up to $75,000, phasing out up to $100,000. For joint filers that range is $150,000 to $200,000 with additional $1,400 stimulus checks for dependents. A study by Harvard-based, nonpartisan Opportunity Insights also issued a report.

The study discovered that consumers making less than $78,000 were more likely to spend their stimulus payments within the first month than higher earners. It is noteworthy that the CTC would jump from a maximum of $2,000 to $3,000 for children 6 and older, and $3,600 for children under 6. The credit will also be entirely refundable and will do away with the earnings requirement that researchers say keeps the poorest Americans from receiving the benefit under the plan. The EITC would also roughly triple for low-income working people under the Democrats’ plan from $500 to $1,500, the analysis found, by lowering the age eligibility and raising the income cap.