Family Inflation Relief Act
The Family Inflation Relief Model Act provides temporary, targeted rebates to working- and middle-income households during periods of sustained inflation. Relief is triggered by objective cost-of-living indicators, funded by reclaiming inefficient tax expenditures rather than deficit spending, and sunsets automatically when inflation eases. The Act delivers timely help with everyday costs while maintaining fiscal discipline and transparency.
Key Provisions
Inflation Trigger Mechanism. Establishes objective economic criteria for program activation.
Household Rebate Structure. Provides refundable payments scaled by income and household size.
Dedicated Funding Source. Reclaims underperforming tax expenditures to fund relief.
Automatic Sunset and Review. Requires periodic reauthorization based on economic conditions.
Transparency Requirements. Mandates public reporting and legislative oversight.
Model Language
Section 1. Definitions.
(a) “Administering agency” means the department responsible for taxation or revenue administration.
(b) “Inflation Threshold” means an annual increase in the Consumer Price Index or a comparable index, as determined by the administering agency, that exceeds a percentage established by statute.
(c) “Eligible Household” means a household with adjusted gross income not exceeding a specified percentage of median household income for the jurisdiction, adjusted for household size.
Section 2. Establishment of Inflation Relief Program.
(a) The administering agency shall establish a temporary Inflation Relief Rebate Program.
(b) Upon certification that the Inflation Threshold has been met for two consecutive quarters, the program shall be activated.
Section 3. Rebates.
(a) Eligible Households shall receive a refundable rebate in an amount determined by income tier and number of dependents.
(b) Rebates shall be issued through the existing tax administration system or direct payment where no filing obligation exists.
Section 4. Funding.
(a) The program shall be funded through the suspension, repeal, or reallocation of tax expenditures that fail to meet statutory performance benchmarks.
(b) No rebate shall be issued unless sufficient dedicated funding is identified.
Section 5. Reporting and Sunset. The administering agency shall submit an annual report detailing program costs and outcomes. The program shall sunset automatically unless reauthorized.