When is a child tax credit not a child tax credit? Just a guess, but probably when it doesn't really help children who actually need help. That's often the situation we have now but changes are on the way...
Here are Five Fast Facts on the new child tax credit expansion:
- 😣 The Current Sitch - Right now, the child tax credit is based on income level. This means that lower income families often get only a partial credit for their kids. Seems a bit bass-ackwards but that’s how it goes.
- 💰 The Dollars - Changes to the law would put $33 billion toward changing this starting right now. Assuming the folks in DC act quickly enough, that is.
- 🚜 The Sense - This new law would get more money to more low-income families, especially in rural areas, which typically earn about 19% less income than urban areas. It would also renew some business tax breaks that are set to expire soon, and adjust the credit to inflation in the future. Wow, is that common sense we hear...?
- 🗳️ The Status - The bill recently passed the house, 357-70. There is no vote scheduled yet in the Senate due to some opposition about the corporate tax breaks and other provisions.
- 🤯 Actually Bipartisan?! - We know, we know. Usually, when the word "bipartisan" gets used, it means the taxpayers are getting screwed by both parties in Washington. In this case, however, it appears that it means what it's supposed to mean - both parties are working together to actually BENEFIT the people! It's darn near miraculous!
🔥Bottom line: While this is definitely not a done deal, it does appear there is strong momentum on both sides of the aisle to get this done, and quickly. If it helps people keep more of their Paychecks -- especially people who are already struggling -- we're all for it! Let's hope Congress makes good on this deal soon.
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