Bipartisan Tax Agreement Boosts Child Tax Credit, Faces Obstacles

The proposed $70 billion package aims to provide relief for families and businesses, but its passage remains uncertain due to reservations from key Republicans and Democrats.

Details of a bipartisan tax agreement that would boost the Child Tax Credit and enact a trio of business tax cuts have been revealed, with the total package amounting to $70 billion.
The tax package is intended to be a three-year deal running through 2025, when much of the Trump administration’s signature tax law is set to expire.
Obstacles remain between the tax package and President Joe Biden’s desk, with key Republicans and Democrats expressing reservations.
Democrats aim to reinstate some version of the expanded child tax credit that was briefly implemented by the American Rescue Plan Act in 2021, which drastically lowered child poverty during the six months it was in effect.
However, the proposed tax deal may not include full refundability for the poorest Americans, a key element of the expanded child tax credit that helped alleviate child poverty.