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Race to pass the President as Senate Republican Donald Trump“Big Beautiful” spending billMajor provisions, including child tax creditCan change between Senate-House talks.
Tax deduction and jobs actOr TCJA, 2017, temporarily promoted maximum child tax credit From $ 1,000 to $ 2,000, which will end after 2025 without action from Congress.
If enacted, Senate bill According to a draft of the text released on Monday, it will increase the largest credit permanently by $ 2,200 starting in 2025. This remedy will also index this figure for inflation after 2025.
By comparing, Bill approved by House The top child tax from 2025 to 2025 will increase the credit to $ 2,500. After that, the highest value of the credit will fall to $ 2,000 and will be indexed to inflation.
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It is unclear how the final provision can change before signing the package in the Trump Act. However, in any version, change Will not benefit The lowest -grossing family, some policy experts say.
“It is extremely disappointing,” said the director of the Federal Tax Policy with Chris Cox, Center on Budget and Policy Preferences’ Federal Fiscal Policy. , [child tax credit] The increase will go to moderate and upper income families. ,
It is mentioned here how the tax break works and if the Congress implements the update then who can benefit.
How to work child tax credit
For 2025, the tax brake is up to $ 2,000 per $ 2,000 with a valid social security number. $ 1,700 is “refundable” to 2025, which provides a maximum of $ 1,700 after exceeding taxes.
“If you have very little income, you cannot reach the full $ 2,000 credits,” and said that out of the very high-income families, “said Ellen Mag, senior fellow of the Urban-Bruckings Tax Policy Center.
After your first $ 2,500 earnings, the Child Tax Credit Value adjusted the gross income, or 15% of AGI, until the tax breaks reach the $ 2,000 peak per child. Once the tax brakes begin after AGI married couples over $ 400,000 once or more than $ 200,000 for all other taxpayers.
‘Central problem’ with child tax credit
Under the current law, 17 million children According to the Center from the Center on budget and policy priorities, do not get full child tax credit. The reason is that many families earn very little and they do not owe taxes.
Proposals of Senate and House do not change that “central problem”.
In 2024, home Passed a bilateral bill To address the issue by increasing the refundable part of the credit, but the law Later failed to the Senate,
The proposed high -war tax credit comes as a US fertility rate Historical hovering nearWhich has disturbed MPs including Trump administration.
Some research suggests financial incentives, Like a big hair tax creditWe can promote fertility. But other experts say Will not solve this issue for a long time,
