They may have put it aside for now, but Democrats have not given up on trying to revive their expansion of the Child Tax Credit
“People think that it’s all gone by the wayside — that hasn’t happened,” Sen. Joe Manchin told reporters. “The Child Tax Credit is still there.” | Anna Moneymaker/Getty Images.
The child credit is not completely gone, it's just reverted to what it looked like before President Joe Biden took office. Out with 2021 were provisions giving a major boost in assistance to the very poorest; increasing the maximum credit to $3,600 per child; and a monthly payment program sending checks to 35 million families.
Well, the calendar took care of that dispute for them. When Democrats’ expansion expired with the new year, the old work rules suddenly snapped back into place — as of Jan. 1, recipients must have at least $2,500 in income to claim the credit and how much they get is tied to how much they earn. It was Republicans, not Democrats, who made higher-income parents eligible for the credit, as part of their 2017 tax overhaul. And cutting them off would reduce the cost of Democrats’ proposal — they could at least partially finance benefits to more average Americans by kicking out higher-income people.
Democrats would have to dump even more from their reconciliation package to satisfy Manchin’s demands that any new benefits be made permanent and that Democrats keep the total cost of their package below about $1.8 trillion. That puts the child credit in jeopardy, since a permanent extension along the lines of what Democrats are planning would run $1.4 trillion on its own.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
What If Congress Made The Child Tax Credit Taxable?I am author of the book 'Caring for Our Parents' and senior fellow at The Urban Institute, where I am affiliated with the Tax Policy Center and the Program on Retirement Policy. I also write a tax and budget policy blog, TaxVox, which you may read at Forbes.com or at http://taxvox.taxpolicycenter.org/ Before joining Urban, I was a senior correspondent in the Washington bureau of Business Week.
Read more »
Speaker Gunn's hallmark plan to eliminate income tax, reduce food tax passes committeeSpeaker Philip Gunn’s latest proposal to phase out the state income tax and to reduce the sales tax on groceries was quickly passed out of the House Ways and Means Committee on Tuesday.
Read more »
Woman rips Delta for refusing to let her buy gender ‘X’ ticket for nonbinary childDawn Henry, 52, slammed Delta in a lengthy series of tweets last week, saying she wanted to buy her 21-year-old a surprise ticket for Christmas, who identifies as nonbinary.
Read more »
Dallas County tax offices closed due to COVID outbreak among employeesDallas County tax offices are closed to the public until further notice. Instead, workers are processing paperwork online or by the phone. County Leaders blame spiking COVID cases among employees and an effort to cut down indoor crowds.
Read more »
A Photographer’s Portrait of His Wife Breast-Feeding Their Infant ChildThe look of Vincent Ferrané’s “Milky Way” is somewhere between that of fashion photography and amateur home snapshots.
Read more »
Here's the deadline for your 2021 tax returnAfter a hectic 2020 filing season, the 2021 season appears to be returning to the norm.
Read more »