Child Tax Credit 2022: Powerful Democrats push against long-term extension

The significant changes made to the Child Tax Credit has been a welcome relief for many families across the United States of America, with it having been favourably altered in March 2021 as part of Joe Biden’s American Rescue Plan, but there is now a debate as to how long the new measures should go on for.

The new-look Child Tax Credit is more generous than it previously was, while the maximum age of qualifying children has also been increased. Also, it gave parents the option to receive half of the Child Tax Credit money in monthly instalments in the second half 0f 2021.

The full amount was made available for lower-income households, but there is concern that this – if it remains in place – discourages people from getting back out into work, which the old version of the Child Tax Credit did.

Push back against Child Tax Credit extension

Rep. Richard Neal (D-Mass.) had ushered large parts of the Democrats’ $3.5 trillion social spending wish list through the Ways and Means Committee last month, including an expansion of the child tax credit through 2025. And he’s pressing party leaders to keep that timeline as negotiators draft the final package.

“We’re going to continue to fight for the House position,” Neal told reporters following a closed-door meeting of the Democratic caucus in the Capitol.

“The process that we undertook here was to do a markup. We didn’t have a new tax plan every half hour; we laid out a plan that was fully paid for; and we set out our priorities,” Neal added. “I think family paid medical leave, I think that the child [tax] credit, I think the dependent care credit — and the Green Act, for sure — ought to remain in the final package as issued.”

Rep. Rosa DeLauro (D-Conn.), head of the powerful Appropriations Committee, was even more terse.

“A one-year extension is a big mistake,” she said, vowing to “continue to pressure for a new framework that’s more enduring for children and for families.”