House Dems want to renew $300 child tax credit until 2025

WHAT’S BEING CLAIMED:

• House Democrats want to renew Biden’s child tax credit until 2025.
• Senate Democrats, however, are aiming for a shorter timeline.
• The vast majority of American families can receive cash from the benefits program for another four years.

House Democrats are pushing to renew the revamped child tax credit until 2025. This may set up a clash with the Senate Democrats who are weighing a shorter extension in the $3.5 trillion social spending plan.

The plan, released Friday night, aligns with President Joe Biden’s proposal. It would maintain the bulked-up benefit for another four years and lock in the credit’s ability to be issued as monthly payments to the vast majority of American families.

It would also allow low-income families who don’t earn enough to owe taxes to tap into the entire benefit permanently, known as full refundability. The bill also includes low-income housing tax credits, Medicaid coverage expansion, and prescription drug reforms that will negotiate lower prices for seniors.

“Taken together, these proposals expand opportunity for the American people and support our efforts to build a healthier, more prosperous future for the country,” Rep. Richard Neal of Massachusetts, chair of the Ways and Means panel, said in a statement.

Currently, the child tax credit offers families up to $300 each month per child age 5 and under, or $3,600 annually, and $250 a month for children between ages 6 and 17, or $3,000 yearly.

The Democratic stimulus law turned the credit into a one-year monthly cash benefit in March, boosting its amount from $2,000. Those earning $75,000 and below are eligible for full payments, along with couples making $150,000 and under.

The benefit phases out entirely for singles at $200,000 and couples at $400,000. Those thresholds still remain in the House Democratic plan.

Senate Democrats, however, are eyeing an extension until 2024 – a presidential election year – and they haven’t decided if they will make it fully refundable beyond that. They’re seeking to avoid crowding out other top priorities in the legislation, like a Medicare benefit expansion, medical and paid leave, and tuition-free community college.

House and Senate Democrats could wrangle over the provision and the limited pot of money available to fund it, similar to another fight underway on either expanding Medicare benefits or making federal subsidies for Affordable Care Act coverage permanent.

The House Democratic timeline would allow the benefit to expire alongside a slate of tax cuts from the 2017 Republican tax law, and Congress would have to address them at the same time. That could pressure Republican lawmakers to support renewing the child allowance in exchange for Democrats extending components of the GOP tax law.

House committees are assembling their parts of the bill, so the child tax credit renewal is still subject to change as Democrats haggle over the size and scope of the plan.

Source: MSN News