House Approves Extended Child Tax Credit; Gwen Moore Opposes
TL/DR –
Milwaukee Rep. Gwen Moore voted against a proposed $80 billion tax package intended to expand the child tax credit, arguing it doesn’t sufficiently help the poorest families. The bill, which passed the chamber with a vote of 357-70 and is expected to be signed into law by President Joe Biden, will raise the refundable portion of the child tax credit for low-income families from $1,600 per child to $1,800 per child, increasing to $2,000 in 2025. Critics argue that the bill does not address the needs of the poorest families, as those earning less than $2,500 per year will not qualify, and the bill leaves in place work requirements that some consider prohibitive.
Milwaukee Rep. Gwen Moore Rejects $80 Billion Tax Package for Child Tax Credit Expansion
Rep. Gwen Moore of Milwaukee is renowned for pushing for the rights of low-income children and families in Congress, making this the centerpiece of her career. However, she recently voted against a near $80 billion tax package to expand the child tax credit, arguing it doesn’t do enough for the most impoverished families.
According to Moore, the proposal marginally improves the current situation, but fails to provide the full credit to the poorest children. Despite this opposition, the legislation passed 357-70 votes in the chamber and is now headed to the Senate. President Joe Biden intends to sign the bill into law.
The proposed legislation, negotiated by Republican Rep. Jason Smith and Democratic Sen. Ron Wyden, would expand the child tax credit to millions of poverty-stricken children over the next three years. It falls short of the 2021 one-year child tax credit expansion enacted through the American Rescue Plan Act, which provided a monthly credit to as many as 61 million children.
The current proposal includes significant corporate tax breaks, offset in part by curbing a pandemic-era employee retention tax credit. It raises the refundable child tax credit for low-income families from $1,600 to $1,800 per child, with increases to $1,900 in 2024 and $2,000 in 2025. Families could use the previous year’s income to qualify for a larger credit.
According to the Center on Budget and Policy Priorities, the expansion would help lift about 400,000 children out of poverty and reach up to 16 million children in low-income families during its first year. The proposal would also make about 224,000 children in Wisconsin eligible for the program.
However, the package has faced criticism from Democrats, such as Connecticut Rep. Rosa DeLauro, for leaving out the poorest families. Critics argue that it doesn’t match up to the 2021 child tax credit provisions and the legislation retains work requirements, a contentious issue on Capitol Hill.
Moore, a member of the tax writing Ways and Means Committee, was one of the three members who voted against the legislation when it passed out of committee. The Wisconsin delegation was divided on the bill, with Democratic Rep. Mark Pocan and Republican Rep. Tom Tiffany joining Moore in opposition.
Despite criticism, Republican Rep. Jason Smith stated that the bill contained no special provisions for undocumented immigrants. Contrarily, Tiffany claimed that children of migrants with an Individual Taxpayer Identification Number would benefit from the scheme.
The bill also drew criticism from Pocan, who argued that it provided more credits to businesses than families. However, some Republicans saw the elimination of the COVID-era employee retention credit linked to fraud as a positive step.
Moore acknowledged the positive aspects in the bill, such as allowing families with multiple children to receive more money and considering the previous year’s income for credit calculation. However, she believed these changes were insufficient, leading to her vote against the bill.
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