Overview

• 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.