New Congressional Plan Calls For Renewal of Child Tax Credit, But With Major Trade-Offs


A new Republican Congressional plan calls for renewing the child tax credit, which could make a noticeable financial impact on American families.
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However, some tax and financial experts are warning that the renewal of this particular credit could have major trade-offs. 

A CNBC report notes:

The proposal, called the Family Security Act 2.0, was created by Republican Sens. Mitt Romney of Utah, Richard Burr of North Carolina and Steve Daines of Montana, who describe it as a “pro-family, pro-life and pro-marriage plan.”

The proposal follows the expiration of an expanded child tax credit that gave families access to monthly child tax credit payments for the first time. That included $300 per month for each child under age 6 and $250 per month for each child ages 6 through 17.
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This expanded version of the child tax credit program began in July 2021 and ended in December of the same year. 

In 2022, the child tax credit reverted to $2,000 per child under 17, without advance monthly checks. 

CNBC spoke to staff members at the Center on Budget and Policy Priorities who noted that the "expanded child tax credit helped reduce child poverty by about 30% as of December."
Credit: Getty Images

Under the current child tax credit system, children in families with under $10,000 in income annually have their credit reduced proportionally -- with some receiving no money at all.
Credit: Getty Images

Furthermore, the bill phases in additional funding at the first dollar of additional income rather than starting after the first $2,500, which is how the current system functions. 

Finally, it eradicates the current $1,500 cap that families can receive as a refund.

What do you think about this new Republican plan to renew the child tax credit program?

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