Senate blocks sending more money from the 2024 Child Tax Credit

For all persons with minor children in the United States, The wait for the approval of a new Child Tax Credit (CTC) is overwhich could send more money to low-income families, and not with very good results.

This Thursday, very early, the United States Senate began its session of the day with the vote on the expanded Child Tax Credit (CTC) for 2024. As expected by some political analysts, The Republican caucus blocked the legislation which included this tax benefit and other tax reductions.

In January, ahead of the 2024 tax season, the House of Representatives had broad bipartisan support and approved what would be the new expanded Child Tax Credit, which sought to benefit low-income families, increasing the amount of money reimbursable from $1,600 to $2,000 by 2025The legislation was worth $79 billion.

It was also sought that the lowest income familieswho do not claim a tax refund because they do not meet the necessary profit thresholds, could receive the CTC moneywhich was essential to combat child food poverty in 2021.

Since then, families have been waiting to see what happens in the Senate, hoping that it will be approved before the tax season ends in April. Many of these households with children have put off filing their taxes as long as possible, hoping to receive more money from the expanded CTC.

At the time, the commissioner of the Internal Revenue Service (IRS), Danny Werfel, highlighted that families with small children They did not have to wait for the approval of the CTC to declare their taxesThe official confirmed that the tax agency had sufficient resources to send the outstanding amount, should the increase be approved.

The bill would also have strengthened certain corporate tax credits, including deductions for research and development, interest expenses and equipment investments, that were limited in an effort to cap the overall costs of President Donald Trump’s 2017 tax cuts law.

As the months went by, and with the upcoming elections in which Joe Biden has just declined his re-election and Donald Trump is perceived as stronger, Republican senators opposed the legislation, hoping to draft a new, more conservative bill in 2025 with greater control from Congress and the White House.

The tax measures, including the CTC, needed 60 votes; The vote was 48 to 44What is striking about this session is that senators like Bernie Sanders, an independent from Vermont, and Chuck Schumer, the Democratic leader from New York, voted “no” in order to seek a better bill in the future.

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