Biden’s Child Tax Credit Is Dead Suddenly

Biden's Child Tax Credit Is Dead Suddenly

( – In 2021, President Joe Biden signed the American Rescue Plan. Within the enormous financial package, Democrats included an extended Child Tax Credit (CTC) that provided payments to parents of children under the age of 18. But it seems as Americans move into 2023, they will be leaving that bit of extra cash behind.

Biden’s expanded CTC provided families with $3,600 a year for children under the age of 6 at the end of 2021, up from $2,000 in recent years. For ages 6 and above, the credit allotted $3,000. Most of these payments came as mid-year checks to families, which was a much-welcomed income boost amidst rising inflation.

While Democrats applauded this program at the time, they failed to rally the votes to get it promised for the 2022 tax year in the Inflation Reduction Act. Yet, the program was one of the progressive party’s most successful. According to Columbia University’s Center on Poverty & Social Policy, the CTC dropped child poverty by over 40%. In another study, researchers found the CTC dropped household food insufficiency by around 26%.

However, Democrats did not move fast enough before losing their majority in Congress. Now, the child tax credits will return to the previously stated $2,000 unless lawmakers reach a separate bipartisan agreement.

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