Sen. Josh Hawley, R-MO, is pushing for an increase in the child tax credit, adding that families were the reason why Donald Trump won the November presidential elections.
Sen. Hawley aims to increase the maximum child tax credit from the current $2,000 to $5,000 for every child, according to Axios, which first reported the proposal. When asked for the reason behind his proposal, Hawley said it was to deliver "meaningful tax relief" to working-class people with children after they helped re-elect Trump.
"President Trump won with the support of working people with kids. Next year's tax bill should provide them a big tax cut," he also wrote in a post on X (formerly Twitter).
What Else Is Included in the Proposal?
In addition to increasing the child tax credit, Hawley is proposing to allow parents who gave birth to claim a credit for the tax year of the pregnancy. He is also urging lawmakers to allow families to receive the credit in regular installments throughout the tax year. Currently, families are given a lump sum every tax season.
Furthermore, he is pushing for child tax credits to be applied to payroll taxes. Should this be implemented, low-earning Americans who do not pay income taxes may have access to bigger tax refunds.
What Could Be the Barriers to an Increased Child Tax Credit?
In 2021, US lawmakers increased the maximum child tax credit to $3,600 per child. That plan would have added roughly $1.61 trillion to the deficit over the subsequent decade had it been made permanent. Hawley's proposal would add over $3 trillion to the national debt. That is even before taking inflation into account.
It is important to note that there has already been an increase proposed in the second half of 2024. That bill was blocked by Senate Republicans.
The expanded child tax credit in 2021 had a significant impact on the reduction of child poverty in the US. By providing up to $3,600 in credit per child, roughly three million children were lifted out of poverty each month it was in effect.
Should lawmakers fail to expand child tax credits next year, the amount would drop from the current $2,000 to $1,000 per child.
