Photo: Doug Mills / POOL / EFE
For: Drafting
A group of Democratic lawmakers is asking President Joe Biden to include a permanent expansion of the child tax credit in his next economic spending package.
The White House is preparing to publish the American Families Plan, the second part of Biden’s Build Back Better agenda, a measure that would cost more than $ 1 trillion and focuses on childcare as well as paid family leave .
This includes an extension of the child tax credit extended to 2025 , prompting rejection from some Democratic lawmakers who want Biden to make the expansion permanent.
The current law, approved in Congress within the framework of the third stimulus package, grants the beneficiary families $ 3, 000 for each child from 6 to 17 years and $ 3, 600 for each child under 6 years old.
Amounts decrease once revenue reaches $ 75, 000 for a taxpayer and $ 109, 000 for married couples, and expansion is about to disappear this year.
If families earn too much to qualify for the extended tax credits, still can receive the $ 2 credit, 04 for your children if your income level is less than $ 200, 000 for a declarant and $ 400, 000 for couples.
A group of Democrats urged the White House to reconsider the deadline of 2025 and support a permanent expansion of the child tax credit.
Include a permanent expansion of the tax credit would raise the cost of the proposal from Biden, a one-year expansion of the child tax credit will cost about $ 109 billion, according to an analysis Congressional Joint Tax Committee.
While making the expansion permanent could cost close to $ 1.6 trillion, the Tax Foundation reported.
Although the details continue to change, it is likely that the proposal is paid in full with new tax increases targeting Americans and wealthy investors.
Some tax increases being considered include restoring the top marginal tax rate to 39. 6%, tax capital gains as income ordinary above a certain threshold and remove the “tiered base” policy.
Experts say the review of the child tax credit of 24 years could have significant implications for millions of families, particularly for low-income households.
According to an analysis by the Center on Budget Priorities and policies at Columbia University, more than 4 million children could poverty.
You may also like: The Government is considering providing a stimulus check for families and child care
