Senate Democrats assess extension of Biden child tax credit to 2024
- Senate Democrats are considering an extension of Biden’s family allowances until 2024 in their massive social spending plan.
- But some low-income families could be excluded from the full allowance after 2024 due to budget constraints.
- Any reduction in the size of the plan could further compromise its expansion.
Senate Democrats are considering a three-year extension of President Joe Biden’s revamped child tax credit in the $ 3.5 trillion social spending plan, according to a Democratic Senate aide familiar with the ongoing discussions. But it could be reduced due to the cost of the program and the prospect of moderate Democrats demanding reductions in the size of the package.
The aide spoke on condition of anonymity to share details of the private negotiations and stressed that he was on the move. The child tax credit would be extended until 2024, and the amount would drop to $ 2,000 in a presidential election year. But families who owe little or no tax would get the full benefit amount permanently, otherwise known as “full refundability.”
Still, to save $ 35 billion, Democrats in the upper house did not rule out removing the full refund for the rest of the decade due to budget constraints. Top Democrats like Senate Majority Leader Chuck Schumer and House Speaker Nancy Pelosi are pushing to keep it.
âNothing is locked up,â the person said. “The White House is pushing for this. We know Schumer is pushing for this. We certainly know Pelosi is pushing for this. But it’s a gambling game at this point.”
Congressional committees are in the process of drafting their parts of the social spending bill. Democrats intend to force him through a process requiring only a simple majority known as reconciliation, and bypass what is likely to be unanimous GOP opposition.
The Senate Finance Committee received $ 385 billion to extend the Child Tax Credit, along with another pair of programs like the Working Income Tax Credit and the Child Care Tax Credit. children and dependents, a person familiar with Insider told Insider. A three-year extension to the child tax credit alone stands at $ 330 billion, according to the Joint Committee on Taxation, highlighting the limited funding some initiatives will have as Democrats scramble to lock in their priorities global economic.
The Child Tax Credit provides up to $ 300 in monthly payments per child under 17. The Democratic March stimulus bill turned it into a cash benefit for most American families. People earning $ 75,000 and less are eligible for the full amount, as are couples earning $ 150,000 and less.
It caps for individuals at $ 200,000 and couples at $ 400,000.
Previously, the program only provided low-income families with part of the federal assistance because they did not have to file an income tax return. Now, the vast majority of families can get the annual benefit of $ 3,000 or $ 3,600, depending on the age of their child.
In addition to renewing tax credits, Democrats are focusing their $ 3.5 trillion package on expanding the reach of Medicaid and Medicare, establishing paid vacation and medical programs, establishing clean energy measures to tackle the climate emergency and the creation of pre-K and universal tuition fees. -free community college programs, among other measures.
Some Democratic lawmakers are looking to salvage the expansion of the child tax credit. Senator Sherrod Brown of Ohio, an architect of the expansion, is working to keep its expanded reach for as long as possible. Early research indicates that the revamped child tax credit lifted three million children out of poverty and reduced hunger in its first batch of payments.
âThe CTC is one of the best tools we have for showing people that the government is on their side and is delivering meaningful results that almost all families with children can feel and see in their daily lives,â said a door. – Brown said in a statement to Insider. “Senator Brown believes we need to maintain full repayment and expand credit expansion because this is the most family-friendly program in a generation and it is already changing lives.”
Experts argue that the repayability of the credit is an essential element in ensuring that it provides the most important benefits to low-income parents.
“This is the most important part of reaching the families who need the most help raising their children and also in terms of racial equity,” Seth Hanlon, tax specialist at the Center for American Progress, told Insider. liberal tendency. He noted that the previous version of the $ 2,000 tax credit excluded 27 million children – most of whom were black and Latino – from receiving all the money.
Axios reported on Tuesday that West Virginia Senator Joe Manchin could support less than half of planned spending. It would be a significant step forward from a currently beefed up $ 3.5 trillion budget, but the 50 Democratic senators must unite to make the plan to clear the upper chamber clear.
Manchin and Arizona Sen. Kyrsten Sinema, another centrist, say they will oppose a package that costs $ 3.5 trillion, angering progressives.
The increased child tax credit is a key Democratic priority, and Biden touted the measure on Wednesday. âEveryone’s talking about my child tax credit; it’s a tax cut for ordinary people,â he said at a union event at the White House. “It is what it is.”