Child Tax Credit
The IRS will provide the last monthly child tax credit payment on Dec. 15. In addition, the Democrats said that it could help reduce child poverty and want to prevent a lapse. However, it will come to an end if Congress doesn’t pass the extension of the monthly child tax credit but Democrats aim to get it on Biden’s desk by Christmas.
The key obstacle is Sen. Joe Manchin (D-W.Va.), who has expressed an unwillingness towards passing the social spending package this year. Despite Manchin’s hesitation, Democrats are persistent about the expanded child tax credit won’t expire. According to Sen. Sherrod Brown (D-Ohio) that they will not let is lapse the child tax “That’s too important” he said.
The $1.9 trillion relief intended for the coronavirus pandemic that Biden enacted in March to expand the child tax credit for 2021. The expansion included growth for the credit amount and monthly advance payments of the credit and allowed the lowest-income families to be qualified for the full credit amount.
The Social Spending Package
Biden’s social spending package adds a one-year extension of the expanded child tax credit. Thursday, Ron Wyden (D-Ore.) the Senate Finance Committee Chairman said to the reporters that the IRS indicated that Congress should approve the social spending package before Dec. 28 to ensure that monthly payments will continue by Jan. 15. The monthly child tax credit is a big help for the Americans who are low and middle-income families.
However, Manchin kept reiterating and suggested that he thinks Congress should hold back before voting on the spending package, mentioning his concerns about inflation. Manchin has also suggested in the past that there be work requirements and lower-income limits for the expanded child tax credit. Manchin also thought that any missed payments could be made up for at a later date.
Furthermore, Democrats are determined to commit by extending the current expansion of the benefit, with some insisting the party use the expansion’s current deadline later this month as an impetus to get Biden’s larger spending plan passed.