Boosting Child Tax Credit: A Costly Proposal or a Game-Changer for Families?
Senator JD Vance’s Plan to Increase CTC to $5,000: A Risky Gamble for Federal Budget?
According to CBSNEWS, In a recent interview, Senator JD Vance, the Republican vice-presidential nominee, proposed increasing the Child Tax Credit (CTC) to $5,000 per child from its current $2,000. This move would likely add trillions in federal spending, according to policy experts. Vance’s plan would also make the CTC fully refundable, allowing families to receive the entire amount as a tax refund.
Vance’s idea may have come too late, as a recent bill that would have expanded the CTC failed in the Senate due to Republican opposition. The Committee for a Responsible Federal Budget estimates that expanding the CTC to $5,000 could result in an additional $2-$3 trillion in borrowing over the next decade. Critics argue that while the CTC is intended to help low- and middle-income families, it could ultimately benefit higher-income families more.
Child Tax Credit Boost: A $5,000 Gamble for Families or a Winning Hand for Working Parents? (PHOTO: GOOGLE)
Senator JD Vance’s Plan to Boost Child Tax Credit to $5,000: A Costly Gamble for Families?
Senator Ron Wyden, a Democrat from Oregon, has criticized Vance’s proposal, citing his lack of support for the recent bill that would have expanded the CTC. Wyden argues that Vance’s stance undermines his claims of supporting working families. Meanwhile, experts point out that even a $5,000 CTC would not cover all the costs of raising a child, which can reach $240,000 from birth to age 18. The effectiveness of such policies in boosting birth rates is also questionable, with Australia’s experience with a “baby bonus” serving as a cautionary tale.
