Biden wants to send more checks to Americans
- President Joe Biden has proposed his 2024 budget that could reduce the deficit by nearly $3 trillion and restore the American Rescue Plan child tax credit to the 2021 amount.
- The tax credit could increase the credit to $3,000 per child and $3,600 for children under 6 years old.
- Parents said they used the funds in 2021 to buy groceries and pay off debt or cover school-related expenses.
- Critics fear the loan could discourage parents from working, but proponents argue it will benefit families in need.
President Joe Biden has presented his 2024 budget proposal, a prospect that proposes the restoration of a tax credit enacted under America’s bailout plan to give more money back to Americans.
Many people have blamed the Biden administration for the inflation that has hit the wallets of many Americans in sectors like food and gas. In November, news week reported that 61 percent of Americans think Biden is “substantially” or “fairly” responsible for inflation. Prices have slowly started trending down but still remain above average. As Congress faces an impending decision on whether to raise the country’s debt ceiling, Biden has unveiled his new budget proposal that could cut the deficit by nearly $3 trillion, according to ABC News. The budget also suggests various benefits for Americans by putting more money in their pockets.
Under Biden’s proposed budget, the American Rescue Plan child tax credit would be reset in full to its 2021 amount. According to a fact sheet provided by the White House, the tax credit halved child poverty in 2021 and, if approved, would increase the credit to $3,000 per child, an increase of $1,000. Parents with children under the age of 6 would get an even bigger loan at $3,600.
The budget would also permanently reform the credit to make it fully refundable. The President is also asking Congress to permanently expand the earned income tax credit for childless workers, which would help lift low-income workers out of poverty pull,” White House wrote in the leaflet.
According to a report by Columbia University’s Center on Poverty & Social Policy, the expanded child tax credit in 2021 reduced child poverty. The United States Census Bureau reported that parents said they used the money — which consisted of multiple monthly payments of $300 — to purchase household items, such as groceries to feed their children. Others used the money to pay off debts or cover school costs for their children.
However, in 2022, Congress refused to renew the law, reducing the tax credit back to the previously existing $2,000. Some states initiated their own version of the credit, but under Biden’s proposal, the credit would once again become a federal initiative.
Another benefit of renewing the child tax credit is that if it’s similar to the 2021 version, families could see some of the money in the form of monthly payments, meaning they don’t have to wait and use the lump sum at tax time can finance earlier.
The 2021 expanded child tax credit has received mixed reviews from lawmakers, with some conservatives raising concerns that more money in the form of a tax credit could discourage parents from working. The Washington Post reported that some conservatives feared growing dependence on the US government through programs like the Child Tax Credit and Medicare, but other lawmakers argued that the credit would do more to help than harm those in need.
Rep. Rosa DeLauro, a Democrat representing Connecticut in Congress, has been a supporter of the loan, claiming on her website that the loan could benefit children’s learning abilities and health.
DeLauro is a member of Congress who promoted the return of the full child tax credit.
“I am proud that President Biden is proposing an extension of the Expanded and Improved Child Tax Credit (CTC). This is a great first step and I will work with the President to enact my American Family Law to finally make the CTC permanent,” DeLauro said news week in an opinion. “I’ve worked to expand and improve the child tax credit since 2003, and I’m proud to have President Biden’s support in this effort.”