Bipartisan Tax Proposal to Benefit Both Ends of Income Spectrum

Expanded child tax credit could lift 400,000 kids out of poverty, but is slated to shrink after 2025 unless further action is taken.

The proposed bipartisan tax package, known as the Tax Relief for American Families and Workers Act of 2024, would provide benefits to both the poorest 20% of households and the wealthiest 1%.
The tax package would increase the value of the child tax credit, benefiting low-income households with children, and provide more generous tax breaks for corporate research and development and equipment purchases.
The expanded child tax credit, if passed, is expected to lift around 400,000 kids out of poverty and make 3 million poor kids better off than they were before.
The proposed expansion of the child tax credit has bipartisan support, though progressive lawmakers would have preferred a return to the 2021 version of the credit, which was larger and disbursed in monthly installments.
The current child tax credit is slated to become smaller after the 2025 tax year unless Congress takes further action.