U.S. Senator Josh Hawley (R-Mo.) announced a new proposal that would expand the Child Tax Credit (CTC) to reward work, support families, and put tax dollars back into the hands of working parents.
“President Trump won with the support of working people with kids,” Senator Hawley explained. “Next year’s tax bill should provide them a big tax cut,” he continued, arguing for the inclusion of his CTC proposal in next year’s reconciliation bill.
Senator Hawley’s pro-family, pro-worker CTC proposal would provide tax relief for millions of American families whose costs skyrocketed and real wages declined under the Biden Administration.
In sum, Senator Hawley’s proposal would:
- Increase the maximum value of the CTC to $5,000 per child, up from $2,000 in the Tax Cuts and Jobs Act.
- Allow parents to use the CTC to offset their payroll tax liability, in addition to income taxes, to boost the credit’s value for the working class.
- Ensure parents begin accruing the credit after their first dollar earned. There will no longer be an artificial earnings threshold to receive any benefit from the CTC.
- Permit parents to earn the CTC for their children during the tax year of pregnancy.
- Give families the option of receiving the new CTC as regular installments throughout the year, instead of waiting for tax time.