One of the federal policies that could benefit families in the community is the Child Tax Credit. The Child Tax Credit is a federal tax benefit for families with children. At the end of January, the House of Representatives passed a bill that could expand the federal Child Tax Credit.
What Does the Child Tax Credit do?
Under the expansion, the maximum amount a lower-income family can receive is multiplied by the number of children in the family. For example, if a married couple earns $12,500 a year, the credit would increase for each child. One child would make them eligible for $1,500, two children would make them eligible for $3,000, and the amount increases with additional children.
If families don’t owe taxes or are getting a refund, the CTC expansion would increase the maximum tax refund amount they could receive. The measure has bipartisan support and passed out of the House of Representatives 357-70 as part of a larger tax policy bill.
What is Happening with the Child Tax Credit?
The CTC will now go to the Senate, where it will be debated and voted on. Sharon Parrott, President of the Center on Budget and Policy Priorities said in a statement, “In its first year, the Child Tax Credit proposal would lift as many as 400,000 children above the poverty line and give more financial support to an additional 3 million children in families with incomes below the poverty line.” Despite strong bipartisan support, Missouri’s congressional delegation was split on the vote in the House. Congresswoman Cori Bush joined with Republicans Eric Burlison and Ann Wagner to oppose the bill.
Bush said the legislation was too focused on helping corporations; Burlison was opposed to expanding Federal benefits programs. Congressman Cleaver from Kansas City voted yes but said he wished the policy had a larger increase for children, but still wanted to be pragmatic with his vote.
Now that the measure is in the Senate, Missourians can contact their US Senators Josh Hawley and Eric Schmitt to urge them to Vote YES on the Child Tax Credit.
Learn More
Missouri Rep. Jason Smith got his child tax credit bill through the House. Will the Senate act?
Child tax credit expanded, business tax breaks get new life in bill passed by U.S. House
