Senate GOP releases tax plan with smaller child tax credit boost
Senate Republicans have proposed a new tax plan as part of their “One Big Gorgeous bill Act,” which suggests an increase to the child tax credit from $2,000 to $2,200 per child. This boost is smaller than the House Republicans’ version, which aims to raise the credit to $2,500. However, the Senate’s version would make this increase permanent, while the House version would see the increase expire after 2028. Both proposals come in response to concerns that the credit would revert to its lower level without legislative changes. The differences in these plans reflect varying priorities within the Republican party, with some lawmakers advocating for a more significant credit increase. The ongoing discussions highlight the challenges and divisions among Republicans regarding family tax benefits.
Senate GOP releases tax plan with smaller child tax credit boost
Senate Republicans released text Monday for the tax section of the One Big Beautiful Bill Act that includes a smaller boost to the child tax credit than the version of the bill passed by House Republicans.
The Senate bill would raise the credit from $2,000 to $2,200 per child. The House version would boost it to $2,500.
However, the Senate version would make the increase permanent, whereas it would expire after 2028 in the House bill.
The change was made to one of several aspects of the Senate bill that is less populist than the House version.
The child tax credit is a benefit that is largely supported by lawmakers in both parties. Without changes to tax law, the credit would revert from its current $2,000 level to $1,000.
The difference in plans is notable partly because $2,500 is roughly how much the credit would need to be to have the same purchasing power as when it was doubled to $2,000 as part of the 2017 Tax Cuts and Jobs Act. If the Senate bill becomes law, the child tax credit will not have the same purchasing power it did in 2017.
Timelines are also different between the two versions of the bill.
The House legislation raised the child tax credit to $2,500, but only through 2028. It would revert to $2,000 in 2029, although it would still be indexed to inflation after that. The Senate version bumps the credit to $2,200 and indexes it to inflation thereafter.
The expansion of the child tax credit in the House and Senate versions of the bill is less than many pro-family conservatives would have liked.
For instance, Sen. Josh Hawley (R-MO), who has long advocated a bigger child tax credit, told the Washington Examiner recently that he would like to double the $2,500 included in the House legislation.
“I’d like to take it to $5,000, but any incremental increase would be tremendous,” Hawley said.
Ahead of the release of the Senate plans, Hawley said he was one of those pushing for a bigger child tax credit in the upper chamber than what was included in the House version of reconciliation.
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Rep. Blake Moore (R-UT) introduced legislation earlier this year that would boost the credit and create a $2,800 tax credit for pregnant mothers.
Also, some pro-family advocates were disappointed that the Republican tax bill included new “Trump” savings accounts instead of greater enhancements to the child tax credit.
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