Lawmakers on Capitol Hill have unveiled a $78 billion tax package after months of negotiations. This bipartisan deal aims to expand the child tax credit and restore certain business tax breaks that have recently expired or phased out. The package also includes provisions for increased funding in areas such as affordable housing and disaster relief.
Under the current tax code, low-income families receive the same child tax credit regardless of the number of children in the family. However, this new deal seeks to provide the same credit for each child, a benefit that was previously exclusive to higher-income families. According to the Center on Budget and Policy Priorities, a left-leaning organization, this proposal could assist more than 80 percent of the 19 million children who currently receive no credit or only a partial one due to their families' low earnings. Additionally, if implemented as planned, the tax package has the potential to lift 400,000 children out of poverty in the first year and an additional 100,000 children once fully in effect.
