Yahoo Movies Fight for Extended Child Tax Credit Intensifies As Democrats Slam Biden’s One-Year Proposal
President Joe Biden pitched a one-year extension of the advance portion of the Child Tax Credit to Democrats on Tuesday, Insider reported.
Stimulus Update: Reasons Your October Child Tax Credit Payment Hasn’t Hit Yet
Learn: Biden’s $3.5 Trillion ‘Build Back Better’ Plan Could Be Slashed to $1.9 Trillion — What’s Still in Play?
The current advance portion of the Child Tax Credit, which are the monthly payments of either $300 or $250 paid out per child each month, is a temporary feature of the stimulus relief bill that was enacted last year. These payments are set to expire, though, with the last payment in December. The six total monthly payments will have resulted in half of the total benefit amount, which can be as high as $3,600 per eligible child if income and age requirements are met.
Many Democrats have been calling for a more permanent distribution of these payments, citing new reports showing their significance on childhood poverty. Studies done by the poverty centers at Columbia and Michigan Universities have shown that in July alone, 3 million children were lifted from poverty as a result of the payments.
Retirement Deficit: AARP Campaign Seeks to Keep Senior Women Out of Poverty
Biden has long stated his ambitions for increasing the payments, originally proposing expanding the advance portion of the monthly payments until 2025. Now, however, Democrats are disappointed that he has only requested a one-year extension.
Biden met with two groups of House and Senate Democrats in an effort to negotiate an extension among both sides. Plans for an extension of the credit seemed difficult recently, as Republicans have been putting the pressure on Biden’s $3.5 trillion social spending plan.
Even those in Biden’s own party are voicing concern. Top House Democrat Rep. Rose DeLauro of Connecticut, a chair of the House Appropriation Committee, stated, “A one year extension is a very big mistake and a missed opportunity for the country,” Insider reported. “I will continue to press for a more enduring framework for children and families ” indicating she believes a longer extension of the child tax credit is necessary.
Stimulus Alert: Manchin Wants Child Tax Credit Earnings Limit at $60K — Is It a Realistic Threshold?
Explore: Fourth Stimulus Won’t Happen, But These Federal Programs Aid Those In Financial Need
Biden called the child tax credit “a tax cut for middle-class people” in a CNN town hall on Thursday, Oct. 21. He added that because the credit is available to households with little or no income, it has cut child poverty in the US by 50%. Time will tell if his one-year proposal to decrease the cost of his $3.5 trillion social spending plan will find the middle ground among Democrats that he’s looking for.
More From GOBankingRates
Find Out Who Made GOBankingRates’ Best Credit Cards Lists and Get Helpful Tips
NEW POLL: How Much Will You Spend Over the Holidays Relative to Last Year?
Last updated: October 27, 2021
This article originally appeared on GOBankingRates.com: Fight for Extended Child Tax Credit Intensifies As Democrats Slam Biden’s One-Year Proposal
