As the White House attempted to revive a limited version of the Build Back Better measure, top Senate Democrats urged President Biden to preserve the enhanced child tax credit payment as the “centerpiece” of a delayed tax and spending deal.
No additional CTC, child poverty rate to increase
In a letter to Biden, senators led by Colorado’s Michael Bennet lauded the monthly cash infusion to families with lowering child poverty by more than 40% and keeping an estimated 3.7 million children out of poverty. Senators Ron Wyden of Oregon, Sherrod Brown of Ohio, Raphael Warnock of Georgia, and Cory Booker of New Jersey were signatories.
According to Fox Business, the parliamentarians without the additional credit, approximately 10 million children will be forced back into or deeper into poverty this winter, raising the monthly child poverty rate from around 12 percent to at least 17 percent. During a pandemic, the last thing we should do is raise taxes on working families.
As part of a comprehensive coronavirus relief package, Democrats temporarily increased the child tax credit in early 2021, but the policy terminated at the end of the year. Low- and middle-income parents might receive up to $3,000 for each child aged 6 to 17 years old and $3,600 for each child under 6. Individuals earning more than $75,000 and married couples earning more than $150,000 were no longer eligible for the income-based payments.
Senator Michael Bennet’s initiative to revive CTC
Senator Michael Bennet has been at the core of talks to resurrect the CTC, which expired on December 31. His willingness to make a concession shows Manchin that he’s serious about reaching an agreement. Bennet told Axios that he’s open to decreasing the total payout income cap from $150,000 for families to $90,000 for individuals without requiring work.
Bennet did not specify how much he is willing to cut the income limitation, but he did disclose that the White House is aware of his willingness to discuss lower limits. Bennet said he has always thought those were appropriate caps, but he is willing to consider different hats if it is necessary to get something done here, Yahoo News reported.
His outreach puts the White House in a difficult position: supporting a means-tested child tax credit implies that some people earning less than $400,000 per year will see their taxes rise in 2022, which may be interpreted as a tax hike.
Read More About: