House Democrats detail proposal for $3,600 child tax credit

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House Democrats on Monday unveiled their proposal to expand the Child Tax Credit as part of President Biden’s $1.9 trillion relief effort.

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The proposal put forward by the House Ways and Means Committee would createe a credit on a refundable basis to as much as $3,600 for some families.

Democrats are hoping to provide $300 per month to households for every child under 6, and $250 per month for children between the ages of 6 and 17, which would level out to $3,600 per year for families with children under six and $3,000 per year for families with older children aged 6 to 17.

The Trump administration expanded the Child Tax Credit via the 2017 reform law to $2,000 per child.

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Rep. Richard Neal, D-Mass., who is the chair of the House Ways and Means Committee, acknowledged that administration of the new credit would be a bit of a challenge for the IRS.

Under the proposal, Treasury Department would issue a check every month to eligible households, Neal said during a press conference earlier on Monday, as opposed to a lump sum during tax season.

Aside from the plan to expand the Child Tax Credit, the proposal also includes $1,400 stimulus checks for individuals making up to $75,000 and couples making up to $150,000.

Republicans have argued that stimulus checks should be targeted toward lower-income households, and Biden has indicated on numerous occasions that he is open to modifying the adjusted gross income thresholds.

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Democrats laid the groundwork last week to use budget reconciliation to pass stimulus measures without Republican support.

The House Ways and Means Committee intends to mark up the legislation this week, Neal said. The panel is responsible for writing around $900 billion worth of the proposal.

Democrats hope the broader legislation will become law in March, when expanded unemployment benefits are set to expire.

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