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.
Sign up for Kiplinger’s Free E-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.
-
Visa Is the Worst Dow Stock Wednesday. Here's WhyVisa stock is down sharply Wednesday after the credit card company came up short of revenue expectations for its fiscal Q3.
-
Another Analyst Moves to the Sidelines on Tesla Stock After EarningsTesla stock is spiraling Wednesday after the EV maker's big earnings miss and Wall Street has been quick to weigh in. Here's what you need to know.
-
IRS Ends Inherited IRA Confusion: Annual RMDs Required for ManyIRAs The agency has resolved a major point of uncertainty for inherited IRA beneficiaries.
-
$145 Million in ‘Senior Freeze’ Checks MailedProperty Tax What you need to know about New Jersey's property tax relief program for older adults.
-
TaxAct Class Action Settlement: Details to KnowTax Filing A multimillion-dollar settlement over alleged data privacy violations affects some TaxAct users.
-
An IRA Contribution Option You Might Not KnowIRAs Retirement savings might not have to take a back seat just because your partner doesn't earn income.
-
Project 2025 Tax Overhaul Blueprint: What You Need to KnowTax Proposals Some people wonder what Project 2025 is and what it suggests for taxes.
-
The Taxes That Come out of Your PaycheckPayroll Tax Your take-home pay is often less than expected due to several payroll tax withholdings you need to know.
-
Seven States Where Gas Tax Increased July 1Gas Taxes Since July has arrived, drivers in several states are facing a gas tax hike.
-
401(k) Withdrawal Penalty Rule Changes for 2024Tax Rules More people are taking early emergency withdrawals from retirement savings accounts. New rules might offer some relief.
