Stimulus check: Will there be a $1250 check coming soon?

There is a proposal surrounding US parents to deliver stimulus checks.

Senator from Utah Mitt Romney proposed the Family Security Act.

The Family Security Act aims to cut child poverty by providing most parents with a $350 monthly payment for each child under age six and $250 for each older child to age 17.

The maximum monthly amount permitted per family will be $1,250.

All families with a single tax-filer making up to $200,000 and joint-filers households with children making $400,000 will secure the benefit.

What if I earned a bit more than the limit?

According to the information received, single-filers or joint-filers earning more will receive $50 less for every $1,000 above those thresholds a family makes.

"Unlike the Child Tax Credit, there is a catch to the proposal - beneficiaries must work, volunteer, or train for at least 80 hours a month, and that's likely why it hasn't become official yet," said Dave Basner.

"While members from both parties are in favor of assisting families, having a work requirement is a sticking point that is currently being negotiated."

A study revealed Romney's proposal could increase poverty overall

According to Washington State University, the proposal is meant to alleviate child poverty.

However, the Economic Modeling made by WSU found evidence that would cause poverty to rise among single-mother families.

Single-mother families' poverty could increase from 26.5% to 45.5%, tripling the number of children in deep poverty.

"Using a structural model to evaluate this particular proposal shows that reducing incentives to work will create more poverty among single-mother families, and therefore, it's likely to increase deep child poverty as well," said Salvador Ortigueira, senior author of the study and a WSU professor of economics.

According to the WSU study, the proposal would replace the Earned Income Tax Credit that low- and middle-income working parents receive when filing their taxes.

It also would eliminate another aid program, Temporary Assistance for Needy Families, to help pay for the cash transfers.

"There's a bit of a distinction between helping people in poverty with tax credits versus non-conditional income assistance. The current policy is a mix of both," said Ortigueira

"If you move the mix from a tax credit toward a guaranteed income, that small change can have very large effects, especially for the population of single mothers because they are very sensitive to these changes."

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