(FreePressBeacon.com) – Republican Senator Josh Hawley (MO) is making waves with a huge proposal to dramatically increase the Child Tax Credit, which would double from $2,000 to a whopping $5,000 per child.
This move could provide significant relief to struggling American families, but it is already causing a stir among fiscal conservatives worried about government spending.
Hawley’s plan aims to put more money directly into the pockets of hardworking parents. The current child tax credit benefits about 40 million families annually, but Hawley believes more is needed in today’s economy.
His proposal would eliminate the $2,500 minimum income requirement while maintaining the employment requirement, ensuring that the benefits go to working families.
Moreover, the senator’s plan goes beyond just increasing the credit amount. It includes distributing tax credits in regular installments throughout the year providing a steady stream of support for families juggling bills and expenses.
Additionally, the plan would apply to payroll taxes, allowing those who do not pay income taxes to access larger refunds.
While some conservatives support the proposal, seeing it as a way to strengthen families and promote traditional values, others are raising red flags about the potential cost.
Estimates suggest that increasing the credit to $5,000 per child could cost between $106 billion and $241 billion in 2025 alone. Some analysts warn it could add over $3 trillion to the national deficit if implemented long-term.
Scoop: Hawley is making a big opening bid in the 2025 tax battle, calling for the child tax credit to increase from a max of $2,000 to $5,000 per kid
After a child is born, Hawley also wants to let parents claim a credit for the year of the pregnancy
https://t.co/C3Tds6yKsJ— Stef Kight (@StefWKight) December 17, 2024
Nevertheless, Hawley remains steadfast in his belief that this expansion would benefit the economy and provide much-needed tax relief to working-class families.
He argues that supporting families is a core conservative value and that this proposal aligns with the MAGA agenda of putting American families first.
The reception among other lawmakers, especially Republicans, remains uncertain. A similar bill was previously voted down by Senate Republicans, highlighting the party’s divide over government spending and fiscal responsibility.
Some GOP members prioritize other issues, such as border security and energy production, while others want to address taxes, energy, and border issues in a single comprehensive bill.
As the debate heats up, conservative strategists are expressing concern over the Republican party’s lack of coordination.
With the Child Tax Credit set to decrease to $1,000 per child if not extended in new legislation next year, lawmakers must find a solution that balances family support with fiscal responsibility.
Hawley’s proposal comes at a time when many Americans feel the pinch of inflation and struggle to make ends meet.
It starkly contrasts the policies of the Biden administration, which temporarily increased the credit to $3,600 under the American Rescue Plan.
This move helped lift millions of children above the poverty level but was criticized by conservatives as unsustainable government spending.
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