Democrats ran on providing more support to the economy given the coronavirus and explicitly on boosting the $600 stimulus payment to $2,000. Currently, they are crafting this package, although there is considerable uncertainty on whether it will pass and the final shape of the bill.

However, one interesting development is that the bill includes an expansion of the child tax credit which would result in direct, monthly payments to households with children. It also signifies that Democrats are embracing direct payments rather than more convoluted programs or tax credits which felt less tangible to people. Many believe that President Donald Trump and Republicans outperformed during the 2020 elections due to the efficacy of these payments during the coronavirus which seems to have kept the economy from totally collapsing.

The Proposal

One difference with this proposal is that it would send monthly payments rather than a one-time payment. This is especially material as it has a better chance of becoming a permanent feature rather than a temporary one. It also fits with Biden's campaign and long-term focus on reducing child poverty.

Specifically, the plan calls for a monthly check of $300 per child younger than age 6 for a total of $3,600 per year. That amount would be lowered to $250 for children ages 6 to 17, or $3,000 per year. Families with higher incom...