Bipartisan efforts to expand the child tax credit are picking up the pace. The Problem Solvers Caucus plans to establish a subcommittee to examine expansion of the $2,000 credit per child. If Congress doesn’t act, the credit will be cut in half and applied to fewer households after 2025. The Congressional Budget Office estimates that making the current child tax credit (CTC) permanent could cost more than $60 billion a year through fiscal year 2033; expanding credit to its 2021 level could cost more than $100 billion per year.

Public support also seems strong. TO new survey of the First Five Years Fund says that 59 percent of part-time or non-working parents say they would return to full-time work if they had access to high-quality, affordable child care. The poll also showed bipartisan support for increasing the CTC and the Child and Dependent Care Tax Credit.

Speaking of polls… In Colorado, Democratic Gov. Jared Polis’s favorite property tax ballot measure is a flop. Voters will decide in November whether to approve a 1 percent increase in the Referendum C cap, which allows the state to withhold and spend more revenue than the limit set by the Taxpayer Bill of Rights (TABOR) constitutional amendment (passed in 1992). A supplemental ballot measure would provide a tax refund of $873 per individual taxpayer.

Michigan Governor Whitmer signs bills aimed at increasing the supply of affordable housing. The current brownfield development program reimburses developers for costs associated with redeveloping historic, blighted, or contaminated properties through tax increment financing. New Laws Expand Michigan’s Brownfield Development Fund to support housing development.

Canada’s digital services tax is still set for 2024. Despite continued US opposition, the Canadian government still plans to introduce a 3 percent income tax earned by big tech companies in Canada in 2024. The tax will apply retroactively to January 1, 2022, unless the Organization for Economic and Cooperative Development (OECD) ratifies a comprehensive tax treaty. Meanwhile, the OECD has issued new guidance that will halt the application of its 15 percent global minimum tax until 2026.

For the latest tax news, subscribe to the Tax Policy Center’s Daily Deduction. Register here to receive it in your inbox on weekdays at 8:00 am (only on Mondays when Congress is in recess). We welcome suggestions for new research or other news. Email Renu Zaretsky at [email protected].

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