The tax savings for individuals would come from four major provisions in the legislation advanced by the House Ways and Means Committee last week:
More low-income parents could take advantage of the child tax credit under the House plan, which makes it fully refundable. It also expands the credit from $2,000 to $3,600 for children under 6 and to $3,000 for children under age 18 for 2021. Low and middle-income parents would receive nearly 80% of expanded benefits.
The Tax Policy Center found that the lowest-income families would receive most of the benefits from the enhanced earned income tax credit, too. The proposal would boost the credit for workers without children by nearly tripling the maximum credit and extending eligibility to more people. Yet the analysis also said that the stimulus payments and child care tax credit could be even more targeted.
CNN’s Tami Luhby contributed to this report.
Source: CNNPolitics – Breaking News