Democrats Contemplate Ways to Resurrect the Child Tax Credit
Some Democrats are looking at ways to trim back their proposal for expanding the child tax credit in a way to win the support of Sen. Joe Manchin (D., W.Va.), according to sources familiar with the matter.
Marketwatch reports some of the options in the plan include reducing the credit expansion and limiting the number of Americans eligible for it.
As part of their roughly $2 trillion education, healthcare, and climate package, many Democrats intended to extend last year’s expansion of the child tax credit.
In July, the Department of Agriculture increased the size of the credit from $2,000 to $3,000 for many households for 2021 and offered it in monthly cash payments to low-income Americans who don’t make enough to owe income taxes.
Additionally, children under the age of 6 received a $600 bonus.
In the new package, Democrats hoped to extend this expansion for an additional year.
In the House, Mr. Manchin’s opposition led to the failure of a one-year extension setting up monthly payments.
In a roughly $1.8 trillion package, according to the people, they plan to cut the credit enough for Government to be able to fund it permanently, a key demand for Manchin.
The Democrats are currently discussing many changes, but many households hope to get their credit back in monthly payments again, according to the reports.