Bipartisan Efforts in House Aim to Overhaul Child Tax Credit

A group of bipartisan House members who played an important part in brokering recent legislative deals intends to work on a proposal to strengthen a current tax credit for families with small children.

Co-chairman of the Problem Solvers Caucus Brian Fitzpatrick, R-Pennsylvania, stated that the group intends to form a subcommittee to address issues related to the child tax credit, which presently provides up to $2,000 per child.

The Problem Solvers Caucus consists of 64 members, equally divided between Republicans and Democrats, who strive to work across the aisle and frequently tackle high-profile issues. Typically, 75 percent of the group’s members are required to endorse a proposal.

The formation of a bipartisan tax package this year might depend on negotiations surrounding the child tax credit. 

Extending the Child Tax Credit Expansion

Democrats have stated that a tax package extending business tax benefits must be balanced with tax measures to strengthen the social safety net, with some naming the child credit specifically.

Fitzpatrick has prevailed convincingly during recent elections, but he remains a target for the Democrats in the upcoming election cycle. He intends to invite Maine Democrat Rep. Jared Golden to participate in discussions regarding the child tax credit.

During the last Congress, when Democrats considered extending the expansion of the child tax credit, Golden argued that the tax credit should be more efficiently distributed to low-income households for a longer duration. The current utmost credit is applicable to households earning up to $400,000 per year.

Golden lauds party’s plan to make credit fully refundable, benefiting families with low or no federal income tax liability.

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Reviving 2021 Expansion

Bipartisan-Efforts-In-House-Aim-To-Overhaul-Child-Tax-Credit
A group of bipartisan House members who played an important part in brokering recent legislative deals intends to work on a proposal to strengthen a current tax credit for families with small children.

Senate Democrats are interested in reviving a 2021 expansion that would have produced a fully refundable credit paid in monthly installments of up to $3,600 per child per year. House moderates are seeking a compromise on the child benefit.

Republican leaders say they won’t revive Democrats’ centerpiece expansion. Last week’s Finance Committee Taxation and IRS Oversight Subcommittee meeting hinted at bipartisan child credit cooperation.

Bennet (D-Colorado) and Johnson (R-Wisconsin) concur that economic growth favors the wealthy, disregards the middle class, and maintains low-income families, including children, in poverty.

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Source: ROLLCALL

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