A few days ago, it was reported that a group from the House and Senate have ironed out a joint tax reform bill in hopes of getting it passed before the Christmas break. However, two Republican Senators, Marco Rubio and Mike Lee said they would not support the joint plan unless the child tax credits were increased to help working families.
Rubio had advocated a tax credit of $3,000 per child, but the revised joint plan had set the credit at $1,100 per child. Reports are circulating that the joint tax reform bill has been revised to raised the child tax credit to $2,000 for some and to $1,400 for others.
It’s hoped that this will appease Rubio and Lee and Republican can get the necessary votes to pass it.
(Washington Post) – Congressional Republicans finished rewriting their massive plan to overhaul the tax code on Friday, adding in a significant expansion of the Child Tax Credit aimed at boosting benefits for low-income families.
The change was added to meet demands from Sen. Marco Rubio (R-Fla.), who set off frenzied, last-minute negotiations when he threatened on Thursday to vote against the bill unless the credit was expanded.
Rep. Kristi L. Noem (R-S.D.), one of the Republicans tasked with ironing out a final bill, said the credit had been expanded, particularly for low-income and working-class families.
“I believe that we’re in a good spot and should be able to earn his support” she said of Rubio…
When President Ronald Reagan pushed for his huge tax reform, Democrats criticized it saying it favored the wealthy and that it would raise the national debt, basically the same arguments they are using today. However, when Reagan did it, the corporate tax breaks resulted in more jobs, more productions and more spending on the part of the general public, which greatly offset the huge addition to the debt that never happened.