For BloombergDemocrats could end up reaching an agreement with Republicans at the end of the congressional session on a tax cut package worth about $100 billion.
Republicans, who are expected to gain control of the House of Representatives in January, want tax breaks for private equity firms, manufacturers and corporations, entities that Democrats have spent the better part of two years trying to raise taxes.
Democrats, according to the outlet, could secure a more modest expansion of the child tax credit in exchange for extending soon-expiring business tax breaks that affect research and development costs, investment deductions and debt write-offs.
“There is going to be a clear debate about tax options, and this whole debate about the child tax credit is front and center of that discussion,” Senate Finance Committee Chairman Ron Wyden (D -OR), on Tuesday, November 15.
Wyden indicated that he, and other members of President Biden’s party, would support some tax breaks if a deal could be reached.
a september report The Census Bureau notes that the national poverty rate fell to 7.8% in 2021, the lowest level on record. This was largely due to pandemic-related stimulus payments, including the expanded CTC.
Data from the Census Bureau indicates that child poverty was roughly cut in half, with the child tax credit playing a role.
At the time, Business Insider spoke with Chuck Marr, vice president for federal fiscal policy at the Center on Budget and Policy Priorities. Marr said: “This is what the success of the policy looks like. This was a landmark achievement in reducing child poverty by a record amount fueled by the expansion of the child tax credit.”
Along with Sen. Cory Booker (D-NJ) and Reps. Rosa DeLauro of Connecticut, Ritchie Torres of New York and Suzan DelBene of Washington, Sen. Michael Bennet (D-CO) has been a particularly vocal advocate of expanded credit, he said. Axios“It’s a priority for the White House and it’s absolutely a priority for me. We never should have allowed it to run out, and I think we can find a way by the end of the year.”
It’s worth noting that there has also been Republican support for some kind of extension. In JulySenator Mitt Romney (R-UT) joined two other Senators in introducing the Family Safety Act 2.0.
You can get more information about the Child Tax Credit at your official White House information page.
What do you think about Congress limping along to reach an agreement on the CTC?
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