Biden Wants To Renew Enhanced Child Tax Credit To Low-Income Families (PHOTO: Yahoo Finance)
Biden Administration Plans To Renew Child Tax Credit This 2023
In a State of the Union address that focused largely on economic and pocketbook issues, President Joe Biden once again called on Congress to renew the expanded Child Tax Credit (CTC), a policy from the first year of his presidency that significantly trimmed the child poverty level in the U.S.
Biden also wants to significantly increase the levy on stock buybacks and impose a Billionaire Minimum Tax. However, Biden is more focused on the expanded Child Tax Credit because it is more significant for the average American family than a tax on billionaires.
Although it can take time or years for a policy to pass. The result of the CTC expansion was swift and noticeable. Child poverty fell dramatically by more than 25%, according to a study from Columbia University as did food starvation levels. According to the report, parents are utilizing the advance payments for household essentials like groceries, clothing for school, and utilities. Despite worries from conservatives, researchers found no evidence that the policy discouraged work among parents.
Biden’s Goal Is To Eliminate Child Poverty In The US
Biden’s goal is to Eliminate child poverty for his presidency and he has been pushing for an extension of the expanded CTC as well as other childcare and family-friendly tax policies for a while. It was part of Biden’s Build Back Better plan but was scraped from what eventually became the Inflation Reduction Act, which was signed into law last year.
Predictably, support for bringing the expansion back to the federal level falls largely along party lines. Democrats Sen. Joe Manchin, D—W. Va.—have ordered the credit’s reduction in child poverty, while progressive commentators have called it Biden’s “single biggest policy success.” During his speech Tuesday, Biden touted the expansion’s success, saying it gave millions of families financial “breathing room.”
According to Republicans, it is too costly and complicated to implement the renewal of the child tax credit this 2023. “Additional support for families and children is a commendable goal, but a goal best achieved through a more simplified and targeted policy,” writes the right-leaning Tax Foundation.
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