On March 9, 2023, President Joe Biden announced his proposed budget for the fiscal year 2024 of $6.9 trillion. The Budget would expand key tax cuts benefitting lower and middle-income workers and families. The proposed budget outlines his investment priorities in every federal agency for the upcoming year. It aims to cut the deficit by nearly $3 trillion over ten years.
President Biden's proposed budget plan includes restoring the full Child Tax Credit that was enacted in the American Rescue Plan. In 2021, child poverty was cut in half to the lowest level in history with help from the American Rescue Plan.
"My budget also restores the Child Tax Credit. You know, when that was in place during the pandemic, guess what? Child poverty was cut in half, to the lowest level in all of American history. And guess what? Because moms were able to go to work. Moms were able to go out there and make a living." President Joe Biden stated during his speech on his Budget for Fiscal year 2024.
President Biden's Budget plan would expand the credit from $2,000 per child to $3,000 per child for children six years old and above and $3,600 per child for children under six. In addition, the Budget would permanently reform the credit to make it fully refundable, so that it no longer excludes children in the lowest-income families, and allow families to receive monthly advance payments.
President Joe Biden wants to expand the credit to help both individuals and families. Biden also calls on Congress to permanently make the Earned Income Tax Credit expansion for childless workers, in hopes that it will help pull low-paid workers out of poverty.
According to the US Census Bureau, child poverty fell to a record low of 5.2 % in 2021, declining from 2020's 9.7% rate because of the Child Tax Credit.Â
Comments / 149