New Republic – President Joe Biden’s legislative agenda is at risk, and the extension of an enhanced tax credit assisting parents is caught in the middle—with Joe Manchin. In recent weeks, this has been a common, but not always fun, place to be. Read the full article.
The West Virginia senator has long been skeptical of the Build Back Better Act, the roughly $2 trillion public investment bill that runs the gamut from childcare to health care to climate change and overhauls tax policy along the way. Included in the Build Back Better Act, which passed the House in November, is a one-year extension of the expanded child tax credit. But recent comments from Manchin have thrown the future of the credit in doubt.
The child tax credit was expanded by the $1.9 trillion coronavirus relief bill that passed in March. The amount of the credit was increased to $3,600 per year for children under age 6 and $3,000 for children between the ages of 6 and 17, for single filers earning under $75,000 and couples earning under $150,000. It was also distributed through monthly payments, instead of parents having to claim the credit in bulk during tax time. Perhaps most critically, the credit for the first time was made fully refundable, meaning that it could be claimed by low-income families too poor to file taxes.
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