Joe Biden, Business, Lifestyle, Colorado, Rosa Delauro, Michael Bennet

Joe Biden, Business

Child tax credit tussle reflects debate over work incentives

WASHINGTON (AP) — To supporters of the child tax credit, there has always been an 'aha moment' — the recognition that as little as a few hundred dollars a month could be life-changing. For Colorado Sen.

10/23/2021 2:37:00 PM

President Joe Biden and leading Democratic lawmakers have been fighting to make permanent the child tax credit that would give families at least $300 a month per child. The latest budget deal would extend the payment only through the end of the next year.

WASHINGTON (AP) — To supporters of the child tax credit, there has always been an 'aha moment' — the recognition that as little as a few hundred dollars a month could be life-changing. For Colorado Sen.

ADVERTISEMENTDespite the concession, the president is still fighting for a legacy-making policy that could become the equivalent of Social Security for children. Biden dubbed the start of payments in July as “historic,” saying that the reduction to child poverty would be transformative and that he intended to make the credit permanent.

The steady evolution of the child tax credit reflects a fundamental split on how lawmakers think about human nature. Do payments from the government make people lazier or give them the resources to become more responsible? Established with bipartisan support in 1997, the credit has changed in ways that challenge many of the assumptions of political identities, as Democrats would be the ones calling on Republicans to cut taxes.

Republican critics and West Virginia Sen. Joe Manchin — the decisive Democratic vote — worry that the payments could discourage parents from working, while supporters say the money would make it easier to afford the child care and transportation needed to find jobs. headtopics.com

“It’s a flat-out tax cut for ordinary people,” Biden said in a Wednesday speech in Scranton. “That’s what it does. I make no apologies for it.”The continuation of the payments of at least $300 a month per child is as much about a political transformation as an economic one.

For the purposes of the federal budget, it is a tax cut aimed squarely at the middle class as median family incomes are at $86,372. The credit’s evolution since being created in 1997 speaks to the power of using the tax code for social policy.ADVERTISEMENT

It allows Democrats to claim the mantle of middle-class tax cutters, while Republicans who oppose the idea could be criticized for favoring tax hikes on this key group of voters ahead of the 2022 elections. That is a sharp reversal from the Ronald Reagan-era identity of Republicans as committed to tax cuts for aiding growth.

“A lot of its initial success was that it did fit into the frame of tax relief,” said Gene Sperling, a Biden aide who worked on economic policy in both the Clinton and Obama White Houses. “This is one place where progressives have over a period of 30 years kind of won the conceptual war.” headtopics.com

The child tax credit was initially bipartisan, a unique policy overlap between former President Bill Clinton and former House Speaker Newt Gingrich.Republicans made it part of their 1994 “Contract with America,” a list of polices that former Georgia Rep. Gingrich rode to the House speakership. Gingrich said in an interview that former Illinois Rep. Henry Hyde, a staunch abortion opponent, emphasized that the GOP needed to show that it cared about children after they were born, not just when they were in the womb. The tax credit was the chosen vehicle.

Clinton separately proposed it in December 1994 in his “middle class bill of rights” speech. The convergence ultimately led to the 1997 overhaul of welfare that established a $500 tax credit for children. Future administrations expanded the credit. But until this year the credit was not “fully refundable” — which meant that parents with low incomes might not earn enough to receive the full payment.

What Biden and Democratic lawmakers did with their coronavirus relief package was remove that limit, effectively turning the tax credit into a monthly child allowance. Their planned extension would make this change permanent.Gingrich and Republicans say people would quit their jobs because they would be able to receive payments without working, depriving children of working parents who can serve as role models.

He calls that “an enormously dangerous thing for our culture.”Backing that argument is a paper by University of Chicago economists that assumes the expanded tax credits would cause 1.5 million parents to ditch their jobs because the credits would no longer be tied to working. headtopics.com

“It’s a policy that’s been transformed from one that encourages self reliance and work to one that doesn’t,” said Bruce Meyer, the University of Chicago professor who co-wrote the analysis.However, real world economic data shows no correlation between the payments and people leaving work so far. Researchers at Columbia University have found that the expanded child tax credit payments that began in July had no impact on labor and that models claiming otherwise are overly simplified. Workers often need to spend money in order to get a job, they reason.

“You have to make an investment in order to be able to work,” said Elizabeth Ananat, an economist at Barnard College who co-wrote the Columbia paper. “You do have to get your car fixed. You have to get your phone turned back on. You have to buy a month supply of diapers in order to secure your spot in the preschool.”

Democratic lawmakers believe the payments reduce poverty and improve educational outcomes, making it more likely that the children will hold steady jobs as adults.Colorado Sen. Bennet backed the idea of a child tax credit after he found as a school administrator that more resources were needed to ensure kids had the stability to succeed.

“Most of the parents are working incredibly hard, some of them working two and three jobs. And no matter what they do, they couldn’t keep the kids out of poverty,” Bennet said.DeLauro says the breakthrough on expanding the credit came as a result of the coronavirus showing how economically fragile many families are and Biden’s own choice as a presidential candidate to support the policy. She believes that beneficiaries will keep their jobs because work is part of who they are.

“People identify themselves by their work,” she said. Read more: The Associated Press »

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It should be 50 thousand a year for a child WOW on the one hand everybody cry's about the government taking liberties with their rights and how they want to make their decisions at the same time their asking for a gov. Hand-out? No thats b.s. your decision to have kids shouldn't have to cost me !! That is y we need more democrats in both houses, don't pass judgment on this administration till 2023 and if we don't put more democrats in both houses next year, it's our fault for the outcome. Get real and get to voting in 22

The problem with TheDemocrats is that they are not fighting hard enough. If GOP had the House, Senate and White House, they would run Democrats out of town; perhaps out of the country. Democrats have it all and they are helpless! JoeBiden chuckschumer SpeakerPelosi Nothing to see here empty nesters...

That would mean if you don’t have children then you should not have to pay taxes nobody help raise my kids I should not have to pay for anybody else kids This is ridiculous, I have a relative with 7 children 5 under 17 who will no longer look 4 work cause of the $$. Expand This means you're penalized for being responsible and not having children you cannot afford.

With inflation I can maybe fill up my gas tank with this check Yes, much better to spend the money on more military equipment/armaments—which will eventually end up parked or abandoned in some desert location and left to rot.

Long a rallying point, Child Tax Credit now splits DemocratsFew things had united Democrats like the child tax credit. Until recently. BREAKING: House of Representatives voted to hold Steve Bannon in contempt of Congress for defying a congressional subpoena by Jan. 6 select committee. Nine Republicans voted to hold in Traitor Bannon contempt! Lock Him Up Lock Him Up Lock Him Up 🤣🤣🤣 BREAKING: The House of Representatives voted to hold Steve Bannon in contempt of Congress for defying a congressional subpoena by Jan. 6 select committee. Nine Republicans voted to hold in Traitor contempt!!! Lock Him Up Lock Him Up Lock Him Up Ironic Wasnt she on The Planet of the Apes?

👎 Didn’t this good intention lead us to where we are today with a subculture of fatherless homes. So it’s gonna end at the end of this year. Got it Trying to buy votes by entitlements… They need to push that tax deal until the next presidential election 🗳 to insure their win If you're single and don't have kids or dependants, the tax code is stacked against you.

It seems that we have three parties after all. The democrats are split which creates 2 and of course we have the new Trump party of racist and democracy killers.

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Elton John Opened Up About How The Trauma He Experienced As A Child Influences His Current Parenting Style'I was always afraid of my parents.'

Biden pushes back against Joe Manchin, saying he doesn't think people need to work to get the expanded child tax creditPresident Joe Biden said at a CNN town hall on Thursday evening that he didn't believe people needed to work to receive the monthly child tax credit, pushing back against a key Democrat's effort to restrict eligibility for the cash benefit. nderi_j Yahoo بايدن الصين حاتنفخك الحق نفسك قبل ماتضيع امريكا وتضيع نفسك