One Democrat who has had “many, many, many conversations" with Manchin is Sen. Joe Manchin, who appears to be the final obstacle for Democrats trying to pass the big bill by Christmas.Īsked specifically about the expiring tax credit this week, Manchin did not respond to repeated questions about the potential loss. But the path in the evenly split 50-50 Senate is more difficult, with no room for dissent.īiden has been in talks with one key holdout, Sen. “And that would probably be the most obvious example of an inflationary type policy.”įaced with Republican opposition, Biden is trying to pass the roughly $2 trillion package with Democrats alone, which the House has already done. “The thing I don’t think you want is a huge spike in spending," Thune told reporters. 2 Republican, said his side was fine letting the policy lapse as the coronavirus crisis eases and the temporary aid goes away. Republicans are fully opposed to Biden’s larger policy bill, which would extend the tax credit, arguing the overall health, education and climate change package is too big and costly at a time of rising inflation. “This is hugely important to a lot of families.” “It says a lot about what families are worried about,” said Sharon Kaye, communications director for New Mexico Voices for Children. Census Bureau.įamilies in New Mexico, which has one of the country's highest child poverty rates, spent nearly 46% of their child tax credit money on food, a study by Washington University in St. All told, some 4.1 million children are on track to be lifted above the poverty line, according to analysis from the Center for Budget and Policy Priorities.Īfter the first checks started arriving in July, about one-third of recipient families used the money during the first few months to pay down outstanding debt, along with paying for school supplies and child care, according to preliminary reports from the U.S. Studies suggest the child tax credit expansions are expected to cut child poverty by 40% - with 9 of 10 American children benefiting. Most dramatically, it gave the credit to millions of families with low or no income, even if they didn't earn enough money to pay income taxes or pay enough tax to qualify for the refund. Biden’s American Rescue Plan increased the credit to $3,000 a year, added 17-year-olds and boosted the amount to $3,600 for children under six years old. Started as a $500 per child write-off under Bill Clinton in 1997, it changed over time and was beefed up under Donald Trump’s GOP tax cuts in 2017.
The child tax credit wasn’t new when Democrats, over the objections of Republicans in Congress, altered the program as part of Biden’s $1.9 trillion coronavirus relief bill shortly after he took office in January.īut rarely has it provided the boost to families seen with this year’s changes.įor more than 20 years, American taxpayers have been afforded a tax break for their children.
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