The House Ways and Means Committee has released portions of the Democrats’ $3.5 trillion social spending proposal, which includes the extension of the Child Tax Credit, infrastructure funding, renewable energy incentives, and health care.
The House Ways and Means Committee Approved Some Portions of $3.5 Spending Plan Bill
In a recently published article in The Hill, the 645-page document was published after the committee approved numerous other parts of the plan earlier this week, including paid family leave and Medicare expansion. On Tuesday, the committee will debate the new section.
The Ways and Means Committee has failed to develop legislation on any tax increases that would be used to offset the cost of increased spending. And, in order for a final bill to reach President Biden’s desk, it must be passed by both the House and Senate Democrats, who are divided into certain topics.
The new draft wording from the Ways and Means Committee would extend a one-year boost in the child tax credit approved by Democrats earlier this year until 2025, the same year that most of the individual tax changes in Republicans’ 2017 tax-cut legislation are set to expire. A portion of the increase would be permanent, enabling low-income families to receive the full amount of the benefit, according to a published report in Press From.
Proposed Extension of Child Tax Credit
The American Rescue Proposal’s changes to the Child Tax Credit would be extended until 2025 under the House Ways and Means Committee’s plan. For the next four years, the $250 monthly advance payments for children aged six to seventeen and $300 for children aged six to six will be maintained. The $3,000 and $3,600 total credit amounts, on the other hand, would be increased for inflation in subsequent years.
More families will be eligible for the Child Tax Credit once the $2,500 earnings limit is removed in 2021. Under the proposal announced on Friday, children without a Social Security number would be eligible for advance payments, allowing parents who file their taxes using an ITIN, an Individual Taxpayer Identification Number used by both resident and non-resident immigrants, to claim the tax credit.
In order to continue receiving payments in the future, families will be required to prove their eligibility each year. If a parent’s financial or familial circumstances change, the IRS will continue to maintain the web portal it created for them to update their information. Children may, however, be automatically enrolled for advance payments based on information obtained from government programs or birth certificates.