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- House Democrats want to renew the Biden Child Tax Credit until 2025.
- But that could spark a clash with Senate Democrats pushing for a shorter deadline.
- The vast majority of American families can receive benefit program money.
House Democrats are pushing to renew the revamped child tax credit until 2025, potentially creating a clash with their Senate counterparts who are considering a shorter extension of the $ 3.5 trillion social spending plan.
The House Ways and Means Committee’s Democratic plan, released Friday night, aligns with the proposal President Joe Biden unveiled in the spring: it would keep the advantage inflated for another four years and block the ability of credit to be issued under form monthly payments to the vast majority of American families.
It would also allow low-income families who do not earn enough to owe taxes to draw on the full benefit on a permanent basis, known as a full refund. Other parts of the bill include housing tax credits for low-income people, an extension of Medicaid coverage, and prescription drug reforms allowing the federal government to negotiate lower prices for seniors. .
“Taken together, these proposals expand opportunities for the American people and support our efforts to build a healthier and more prosperous future for the country,” said Representative Richard Neal of Massachusetts, chair of the Ways and Means panel, in a statement. communicated.
The Child Tax Credit currently offers up to $ 300 per month per child aged 5 and under, or $ 3,600 per year. For children ages 6 to 17, families can receive $ 250 per month, or $ 3,000 per year.
In March, the Democratic stimulus bill turned the credit into a one-year monthly cash benefit, increasing the amount by $ 2,000. People earning $ 75,000 and under are eligible for full payment, as are couples earning $ 150,000 and under.
The benefit disappears entirely for singles at $ 200,000 and couples at $ 400,000. These thresholds are unchanged in the Democratic House plan.
But Senate Democrats are considering an extension until 2024 – a presidential election year – and they have not decided whether they will make it fully refundable beyond that. They seek to avoid crowding out other major priorities from the legislation, such as an extension of Medicare benefits, medical and paid vacations, and a tuition-free community college.
House and Senate Democrats could argue over the provision and the limited amount of funds available to fund it, similar to another ongoing fight to expand Medicare benefits or make federal grants for coverage under the law permanent. on affordable care.
The House Democratic timeline would allow the Perk to expire alongside a list of tax cuts from the Republican Tax Law of 2017, and Congress is expected to address them at the same time. This could put pressure on Republican lawmakers to support the renewal of family allowances in exchange for Democrats extending elements of the GOP tax law.
Democrats are set to push through the anti-poverty bill through reconciliation, which only requires a simple majority and sets the stage for bypassing the Republicans’ unanimous opposition. But Democrats can only afford three defections in the House and none in the Senate for the bill to pass.
House committees are pulling their parts of the bill together, so the renewal of the child tax credit is always subject to change as Democrats haggle over the size and scope of the plan.
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