A bipartisan group of Congress members plans to work on a proposal to enhance the existing Child Tax Credit (CTC), Roll Call reported.
Rep. Brian Fitzpatrick (R-Pa.) chair of the Problem Solvers Caucus, a group of 64 House members evenly split between Republicans and Democrats, told Bloomberg Tax that the group is planning to launch a subcommittee to work on issues associated with the CTC, which currently provides up to $2,000 per child.
An expanded CTC passed in the spring of 2021 as part of the American Rescue Plan and then expired at the end of 2021. The credit increased from $2,000 to $3,000 (or $3,600 for children under the age of six) per child and the older age limit of a qualifying child was raised from 16 to 17. The current CTC, which expires after 2025, is available at the full amount for married couples filing jointly who earn up to $400,000, and for individuals who earn up to $200,000. Above those thresholds, it phases out at a rate of 5 cents for each dollar, Roll Call reported last month.
Fitzpatrick, a member of the House Ways and Means Committee, said that he would like to see a version of the CTC in a bipartisan tax package being negotiated by Congress. “I hope something like that gets included,” he said. “Right now, low-income people aren’t even eligible to receive it. It’s a $2,000 credit, and it’s a modest cost.” Fitzpatrick said that he plans to ask Rep. Jared Golden (D-Maine), to be involved in the child tax credit discussions.
On the other side of the Capitol, Senate Democrats want to revive the 2021 expansion that created a fully refundable credit, paid in monthly checks that were worth a total of up to $3,600 per child each year.
While that may be too much for Republicans, a bipartisan agreement may be possible. Before a Senate Finance Taxation and IRS Oversight Subcommittee hearing last week, its ranking member, Sen. John Thune (R-S.D.), said that Republicans are open to proposals from Democrats, but not their full 2021 expansion.
“A lot of support among Republicans for the CTC, but the way [Democrats] widened the eligibility and increased the amount has made this thing balloon in terms of the [cost],” he said.