House Democrats propose to extend extended child tax credit until 2025

House Democrats propose to extend extended child tax credit until 2025

Families with school-aged children should not bet on a stay in countries open to travelers vaccinated this summer.

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House Democrats have unveiled a proposal to keep the expanded child tax credit until 2025.

While an advocacy group, MomsRising, is “thrilled” with the development, executive director Kristin Rowe-Finkbeiner said the group hopes to make the extended credit permanent.

The expanded child tax credit was included in the US bailout package signed by President Joe Biden in March.

Eligible families can now receive $ 3,600 per child under 6 and $ 3,000 for ages 6 to 17. This is over $ 2,000 per child, provided families meet certain income limits (less than $ 150,000 for couples and less than $ 112,500 for lone parents).

Monthly payments of $ 300 per child under 6 and $ 250 per child 6 to 17 began in July.

These monthly checks should continue until the end of the year. The second part of the amount will be returned to families when they pay their taxes this year.

The law made the credit fully refundable, which means families with little or no income are now also eligible.

In their resolution released Friday, House Democrats sought to make the facility for repaying credit to these families permanent.

The Democrats’ proposal aims to extend credit amounts and monthly payments until 2025, when other tax provisions expire.

Granted, the terms of any extension could change as lawmakers on Capitol Hill rush to complete a series of legislative efforts this month. The upcoming $ 3.5 trillion spending bill has encouraged Democrats to try and push some of the key points on their agenda, including child tax credits, through a so-called budget reconciliation or a simple majority in the Senate.

Republicans have indicated they do not support the proposed child tax credit.

In an announcement released last week, Republicans at House Ways and Means sought to refute some of the Democrats’ claims regarding credit.

Democrats turn child tax credits into jobless welfare that, if made permanent, will hurt families, risk billions of taxpayer dollars in waste and fraud, and cost US jobs “he said in a statement. Will come.”

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The Tax Cuts and Jobs Act, which was led by Republicans and passed by Congress in 2017, increased the maximum child tax credit from $ 2,000 to $ 1,000 for those under 17.

Advocates like Moms Rising say the newly expanded child tax credit is expected to continue after this year.

“The expansion of the child tax credit has produced historic benefits for our families and our economy in 2021, lifting 50% of all children out of poverty and boosting the economy,” Rowe-Finkbeiner said.

Research from the Center on Budget and Policy Priorities found that the US bailout will help reduce child poverty by more than 40%.

The fact that the child tax credit is now fully available to families, regardless of their income, explains 87% of its anti-poverty effects, according to the Center.

“In the upcoming stimulus legislation, policymakers should end the work by making this reform permanent,” researchers from the Center on Budget and Policy Priority wrote this week.

The Center cited preliminary data showing that low- to middle-income parents were spending the initial payment on food, utilities, clothing and shelter.

House speakers Nancy Pelosi, D-Calif., And Rep. during a Child Tax Credit press conference at Barrio Action Youth and Family Center on July 15, 2021 in Los Angeles. Jimmy Gomez, D-Calif.

Mario Tama | Getty Images

Momsraising, who has advocated expanding the child tax credit for “years and years,” Rowe-Finkbeiner said, agreed.

“We don’t want to make historic gains for our children and our economy, only to end them,” she said.

“We are delighted that the extension of the child tax credit is on track to continue beyond 2021 and we ultimately want to make the extension of the child tax credit permanent,” she said. declared.

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