Portland, Oregon 2021-07-18 10:55:13 –
(NEXSTAR) – Parents of an estimated 60 million American children have begun to receive Payment of child tax credit From this week’s IRS, millions of families are expected to cross the poverty baseline for the rest of 2021.
As many parents have known, payments are not completely new funds, but rather differ from stimulating checks in that a prepayment to the parent of the child tax credit has already been deducted from the tax at the time of submission. The total amount of credit was strengthened in 2021 as part of the Biden administration’s US rescue program. This year, parents will receive half of the money in advance and the rest when the submission is made next spring. This means that monthly check payments will disappear in early 2022.
Increasing numbers of lawmakers are in favor of making monthly cash injections a long-term benefit for parents, but the costly pandemic rescue efforts and fears of inflation have fueled a fierce move to add new spending. There is also the opposite.
The places where discussions will take place in mid-July are:
Why do you want your CTC payments to be permanent?
The expanded child tax credit will be fully refunded. This means that even parents who are not burdened with annual income tax can inject cash, creating a reliable source of income for very low-income families. According to a survey by the Center for Poverty and Social Policy at Columbia University, 45% of poor children cross the poverty line on a monthly check.
“This is a very important program that makes a huge contribution to alleviating child poverty, which is a very important issue in the United States,” said Treasury Secretary Janet Yellen. Told NPR this week.
According to a 2011 study, such tax credit injections helped low-income students test their averages in school, increasing their chances of success in their studies and careers while gaining more food and other necessities. May make it easier.
What is the argument against the ongoing payment of child tax credits?
Permanent child tax credits enjoy bipartisan support, and the idea actually stems from the Republican Nixon administration. However, permanent credit has some critics, mainly from the center and right of the political spectrum. The most obvious concern is the increase in costs. Some lawmakers have expressed support for packages that include permanent credits as long as they are paid. That can mean a tax increase, which can cause political problems. According to the program, the cost of this program is estimated at $ 100 billion annually. The Wall Street Journal..
Others believe that payments (known as social security for children) simply solve the short-term poverty problem, Discourage parents From progress in the workplace. Many social programs, including current CTC checks, offer low benefits to high-income earners. Critics say that if parents sacrifice such benefits, they may be less likely to pursue career advancement.
Where are the efforts to extend payments beyond 2021?
The Biden administration is pushing to extend credits until 2025, and it is recorded that it wants to make credits permanent by raising taxes on people who earn more than $ 400,000 a year. Republicans, including Senators Marco Rubio (Florida) and Mike Lee (Utah), have previously proposed their own family support plans, including that such credits are tied to employment. Senator Mitt Romney, Utah, also led a simplified child allowance claim.
Monthly checks are expected to be popular with voters, and the dispute over what the extension will look like can put Republicans in a difficult position in a widespread and popular program.
“When ready for renewal, Republicans oppose payments to families provided through the credits they pioneered and defended in 2017,” said Samuel Hammond, director of poverty and welfare policy at the Niskanen Center. You will be in a difficult position. ” Associated Press earlier this year. “Another way is to get together behind Plan B.”
Many Republicans will entertain the extension of their terms, but their priorities may not be taken into account in the final proposal.
This week’s report suggests that the Democratic Party is pursuing credit expansion through a large $ 3.5 trillion budget adjustment proposal. This is a move in the Senate to pass the package without Republican support.
The move will reduce the Senate’s voting criteria from 60 to 50, which will also link the program to a less popular element of the Biden budget agenda. If it turns out to be difficult to get through the package, Democrats may have to revisit breaking credit extensions with legislation that is palatable to both Democrats and Republicans.
Child tax credit checks: Will they become permanent? Source link Child tax credit checks: Will they become permanent?