Expanded Version of Child Tax Credit Bill Approved by House
The House of Representatives, with endorsement from both sides of the aisle, has approved a bill that proposes a revamped version of the Child Tax Credit. The primary focus of the bill is a $79 billion tax cut package, which encompasses $33 billion for the expanded Child Tax Credit for the next three years. The potential alterations in the bill would enable more families with low income to qualify for the credit which could, consequently, uplift half a million children out of poverty. Nevertheless, this bill has encountered criticism from both conservative and liberal viewpoints, with conservatives labelling it as ‘welfare’ and liberals arguing that the benefits do not go far enough.
Awaiting Green Signal from Senate
The bill is now pending approval from the Senate and has met resistance from a handful of Republican senators due to disagreements over policy and process. Certain senators have expressed their wish for the bill to undergo the committee process. Meanwhile, others voiced concerns about the work requirements for the Child Tax Credit and the approach to financing the clause. Advocates of the bill urge prompt action in light of the financial issues encountered by families and small businesses.
Key Points of the Bill
The bill, formally known as the Tax Relief for American Families and Workers Act of 2024, seeks to elevate the maximum refundable tax benefit to $1,800 per child for the tax year 2023, $1,900 for 2024, and $2,000 for the year after. Under the new expanded credit, qualifying families could potentially receive an average break of $680 in the present tax season. The Center on Budget and Policy Priorities reveals that more than one in five children would benefit in the inaugural year, with the possibility of 400,000 children being elevated out of poverty levels.
Outlook in the Senate
Although the bill gained bipartisan approval in the House, its success in the Senate remains unclear. Anticipated opposition from Senate Republicans and progressive members over the cost and possible political repercussions could present significant obstacles. These issues, together with an already overwhelmed Senate schedule and upcoming government funding deadlines, might hinder the prompt approval of the bill.
