Republican Senators' Plan Drops the $3,000 or $3,600 Child Credit
A plan by 10 moderate GOP Senators omits Biden's proposal for a higher temporary child tax credit.
President Biden is calling for a number of family-friendly proposals in his American Rescue Plan, a $1.9 trillion stimulus relief package. One element in the plan that Democrats say would help reduce child poverty is his proposal to temporarily expand the child tax credit.
Presently, the child tax credit is worth $2,000 per dependent under the age of 17. Up to $1,400 of the child credit is refundable for some lower-income individuals with children. Biden wants to increase the credit for one year to $3,000 per child ($3,600 for a child under age 6), make it fully refundable and allow 17-year-old children to qualify.
A group of 10 moderate Senate Republicans who believe that Biden's stimulus package is too costly met with the president to discuss their $618 million plan. It calls for smaller stimulus checks for fewer individuals and less unemployment benefits for the jobless, among other things. But it drops Biden's proposal for higher child tax credits.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Democrats have shot down the $618 million plan as a nonstarter, mainly because it does not provide aid to state and local governments and its unemployment benefits are not robust enough. Also, many Democrats feel that now is the time to again go big on stimulus to help the economic recovery.
Yet the fact that Biden met with the group of 10 GOP Senators for two hours shows that he is still hoping for bipartisan support on a stimulus package. But if he can't get it, he may very well turn to budget reconciliation to allow legislation to pass the Senate with a majority vote instead of the usual 60 votes to avoid a filibuster. This tool, which is messy, subject to lots of restrictions and can only be utilized for certain items, was last used during Donald Trump's presidency to enact his signature tax law in late 2017.
-
Dow Rises 313 Points to Begin a Big Week: Stock Market TodayThe S&P 500 is within 50 points of crossing 7,000 for the first time, and Papa Dow is lurking just below its own new all-time high.
-
The $3,000 Retirement Mistake Millions Make Each Year (And How to Avoid It)A little oversight or automation can keep money in your pocket.
-
January Fed Meeting: Live Updates and CommentaryThe January Fed meeting is a key economic event, with Wall Street waiting to see what Fed Chair Powell & Co. will do about interest rates.
-
3 Retirement Changes to Watch in 2026: Tax EditionRetirement Taxes Between the Social Security "senior bonus" phaseout and changes to Roth tax rules, your 2026 retirement plan may need an update. Here's what to know.
-
Tax Season 2026 Is Here: 8 Big Tax Changes to Know Before You FileTax Tips Due to several major tax rule changes, your 2025 return might feel unfamiliar even if your income looks the same.
-
12 Tax Strategies Every Self-Employed Worker Needs in 2026Your Business Navigating the seas of self-employment can be rough. We've got answers to common questions so you can have smoother sailing.
-
A Free Tax Filing Option Has Disappeared for 2026: Here's What That Means for YouTax Filing Tax season officially opens on January 26. But you'll have one less way to submit your tax return for free. Here's what you need to know.
-
When Do W-2s Arrive? 2026 Deadline and 'Big Beautiful Bill' ChangesTax Deadlines Mark your calendar: Feb 2 is the big W-2 release date. Here’s the delivery scoop and what the Trump tax changes might mean for your taxes.
-
Are You Afraid of an IRS Audit? 8 Ways to Beat Tax Audit AnxietyTax Season Tax audit anxiety is like a wild beast. Here’s how you can help tame it.
-
States That Tax Social Security Benefits in 2026Retirement Tax Not all retirees who live in states that tax Social Security benefits have to pay state income taxes. Will your benefits be taxed?
-
10 Cheapest Places to Live in WashingtonProperty Tax Is Washington your go-to ski destination? These counties combine no income tax with the lowest property tax bills in the state.
