It is estimated that some 250 U.S. politicians are working to reinstate the $2,000 baby bonus and the $300 monthly child tax credit payments.
In order to ensure that the increased child tax credit included in the American Rescue Plan remains in effect indefinitely, Democrats have proposed a bill that has received enough Republican support to be taken as more than a wishlist.
One of President Joe Biden’s flagship projects, the legislation increased the 2021 tax credit, with the largest amounts going to low-income families with children.
House Minority Leader Hakeem Jeffries of New York and Representative Alexandria Ocasio-Cortez of New York are just two of the 210 Democrats who have signed on as cosponsors of the bill.
In the Senate, a similar bill sponsored by Ohio Democrat Sherrod Brown has garnered the support of 40 senators.
It’s difficult to get anything done when the Republicans only possess a slim majority in the House and the Democrats only hold a slim majority in the Senate. A little over a month ago, the political parties’ conflict nearly caused the country to default on its debt. It would be difficult to pass a new tax policy.
The bill’s chances of passing are low, but it has a chance if it’s used as a negotiating point in spending negotiations that would offer Republicans their desired company tax reduction and Democrats their desired child tax credit. Some conservative senators are thinking about supporting this approach, and it might be negotiated by Republican members of the nonpartisan Problem Solvers Caucus.
The new stimulus plan entails what, exactly?
To rephrase, the new plan would:
- The elimination of wage thresholds for the maximum credit
- Increase the monthly tax credit for children to $250.
- A $300 monthly tax benefit for children under the age of six should be maintained.
- In the month when a baby is born, provide an additional $2,000 as a “baby bonus.”
An information sheet distributed by Representative Rosa DeLauro’s (D-Connecticut) office confirms this.