Stimulus Update: Child Tax Credit Expansion Still ‘Achievable’ by End of 2023 — Where Issue Currently Stands in Congress
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Nicole Spector
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Daria Uhlig
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Passed in 1997 and expanded numerous times since 2001, the Child Tax Credit is designed to help families with the costs of raising kids. Under the American Rescue Plan Act, the maximum credit increased from $2,000 per eligible child (under age 17 at the end of the tax year) to $3,600 for children under age 6 and $3,000 for children ages 6 to 17. It was an increase that helped millions of people. But at the end of 2022, the expanded credit expired, sending 3.7 million children into poverty, according to the Center on Budget and Policy Priorities.
President Joe Biden and other Democratic leaders have been roadblocked in their attempts to re-extend the expanded Child Tax Credit, but that might be changing soon as Republicans apparently warm up to the idea — or some version of it.
“There is a bipartisan base of support, not only for the credit itself but expanding it,” Pete Sepp, president of the National Taxpayers Union, told The Sacramento Bee. “From the rhetoric, you would think the two parties are far apart but it’s more a matter of feet than miles.”
A parental tax break “would be achievable at the end of the year,” said Rep. Richard Neal (D-Mass.), top Democrat on the House Ways and Means Committee, which is that body’s primary tax-writing committee.
An expanded tax credit could be used by families across the nation, but for perspective, it’s worth noting that it could directly help 15 million in California alone.
And yet the expanded tax credit won’t just magically appear, nor is it likely to be exactly what it was like before it expired. There’s a kerfuffle around cost and rhetoric around whether it’s really the ideal way to help families in need.
Still, there is reason for hope of its return in some form — particularly now that there are inklings of Republican support.
“I am optimistic that both sides of the aisle can work together to achieve a fair compromise on this issue and reach a solution that will support working families while ensuring that the credit is fiscally sustainable for the long-term,” House Republican and Ways and Means member Brian Fitzpatrick told Newsweek.
