John,
Earlier this month, the House passed the bipartisan Tax Relief for American Families and Workers Act―the tax package that includes an expanded Child Tax Credit. Now the bill is in the Senate where some are attempting to weaken the CTC’s positive impact on low-income families.
While this expanded tax credit is less robust than the one passed in 2021, it will increase the Child Tax Credit for 80% of low-income families who do not currently receive the full credit. It would lift 400,000 children out of poverty in tax year 2023, rising to 500,000 above the poverty line in 2025.1
But if Senate Finance Committee Ranking Member Senator Mike Crapo (R-ID) and others have their way, the Senate would stall or block action on this package despite overwhelming bipartisan support. Or they would pass a version of the expanded Child Tax Credit that would revoke a “lookback” provision that helps families experiencing a temporary decline in their wages and deny the CTC to U.S.-born children with a parent who doesn’t have a Social Security number.
This is completely unacceptable and must not be allowed to stand.
When Congress fully expanded the CTC in 2021, we saw childhood poverty drop by almost half and millions of families were able to get caught up on bills and feel like their heads were above water for the first time in years. But Congress allowed it to expire, plunging millions of children and families back into poverty. The bill before the Senate now provides a meaningful chance to start to rebuild the CTC; we’ve got to keep up the fight to make it happen.
We’re demanding Congress put low-income families first by keeping the House passed version of the expanded Child Tax Credit in the bipartisan tax bill―and get this package passed ASAP to give families support this tax season.
Donate $5
today to help fund the fight to pass the expanded Child Tax Credit as-is, not a watered down version that hurts vulnerable families.
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Thank you for all you do,
Meredith Dodson
Senior Director of Public Policy, Coalition on Human Needs
1 About 16 Million Children in Low-Income Families Would Gain in First Year of Bipartisan Child Tax Credit Expansion
-- DEBORAH'S MESSAGE --
John,
The bipartisan tax package including the expanded Child Tax Credit (CTC) is currently in the Senate and some right-wing lawmakers want to make low-income families suffer even more.
One provision they want to remove is the “lookback”: a change that would allow families to choose whether to use the current year or a previous year’s income to determine how much of the CTC they should receive during tax time.
This provision is critically important because parents in low-income families―particularly low-income families of color―are more likely to have jobs that pay hourly and vary wildly in the amount of hours worked. It’s very easy to go from having 30+ hours one week, to having half that the following week and not having any control over your work schedule―and for families with new children, there can be even more changes in income. The “lookback” provision allows families to receive a greater amount from the CTC to help supplement lost or unreliable income.
The obstacle to this provision lies in the utterly false belief that it would incentivize parents to stop working. This is preposterous. Parents who need their earnings to pay rent and buy food every month will not wilfully cease work because they’ll get a somewhat bigger tax credit months later. Recognizing that, Congress’ bipartisan Joint Tax Committee estimated no discernable work disincentive from the lookback provision.1
We’re fighting back against these bad amendments that seek to undermine the expanded Child Tax Credit and need your support. Donate $5 today so that parents and children aren’t penalized for a decline in their income.
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Another provision some extremists want to add would deny the expanded CTC to families whose parent doesn’t have a Social Security number―even if the child was born in the United States and has a Social Security number themselves. The results of this provision being added would be devastating considering that more than 4 million children in the U.S. have at least one undocumented parent.2
The improvements in the House-passed tax bill would provide help to 16 million children, and would lift 500,000 out of poverty when it’s fully phased in in 2025.3 That’s a meaningful step forward, and Congress should under no circumstances reduce the impact of the CTC.
We can’t allow prejudice and xenophobia against working and immigrant families to prevent millions of children from receiving the support they need.
Donate $5 today so we can continue the fight to keep the expanded Child Tax Credit as-is in the bipartisan tax package and get families the help they need.
If you've saved your payment information with ActBlue Express, your secure donation will go through immediately:
Thank you for all you do,
Deborah Weinstein
Executive Director, Coalition on Human Needs
1 Macroeconomic Analysis Of H.R. 7024, The "Tax Relief For American Families And Workers Act of 2024," As Ordered Reported By The Committee on Ways And Means, On January 19, 2024
2 Migration Policy Institute
3 Bipartisan Child Tax Credit Expansion Would Benefit Millions of Workers in Low-Paid Occupations
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