President Biden has called for renewing enhanced child tax credit payments for parents as part of the family policies as part of his proposed budget for the fiscal year 2024.
: President Joe Biden Pushes To Renew Enhanced Child Tax Credit Payments This Fiscal Year 2024- Here’s Why! (PHOTO: The US Sun)
Biden To Renew Enhanced Child Tax Credit Payments Under His Proposed Budget For The Fiscal Year 2024
Last week while announcing his proposal for the fiscal year 2024, President Biden includes several measures aimed at helping families, including renewing the enhanced child tax credit. President Joe Biden has been in favor of extending the enhanced child tax credit. In his proposed budget for the fiscal year 2024, President Biden called for renewing the enhanced child tax credit to the exact level as was the American rescue plan 2021. President Biden wants to increase the current maximum child credit from $2,000 per child to $3,600 per child under age 6 and to $3,000 per child ages 6 and above.
Moreover, the allocation also calls for permanently making the child tax credit fully refundable, this ensures people would be eligible even if their tax liability was less than the credit amount. As well, the proposal not only renews the enhanced child tax credit but also proposes spreading the funds the same way as was under the American Rescue Plan. So, if the proposal is approved, families would get the cash in the form of monthly payments, and the remaining at the time of filing taxes.
The Enhanced Child Tax Credit Can Help Lower Poverty In The Country
The enhanced child tax credit in 2021 was established to be a lifeline for millions of households, and there is evidence to back it up. Center on Poverty & Social Policy by Columbia University claims that the enhanced child tax credit reduced child poverty in the US. According to President Biden last week the enhanced child tax credit helped to slash poverty in half, the“lowest level in all of American history.”
Further, the United States Census Bureau reported that families used the enhanced child tax credit to purchase household essentials, including groceries to provide food for their children, while many others used the money to pay off debt and school-related payments. Also, more than 200 economists, in an open letter to congressional leaders in December, called for restoring the 2021 child tax credit, arguing it would help families to satisfy the rising costs, as well as promote better economic health.
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