$3,600 Monthly Child Tax Credit on The Agenda For September

I want to give you a status update on the monthly child tax credit payments so right now the politicians are getting ready to negotiate tax legislation the Republicans are pushing for more corporate tax breaks and the Democrats are willing to trade in exchange for more corporate tax breaks the Democrats want to bring back the monthly child tax credit payments and you have to remember that at the end of the day the child tax credit payments those are essentially just tax breaks their tax credits now what the Democrats want what they're asking for it's going to be similar to the monthly payments that went out during 2021 but there's there are a few changes that are being requested and if you think that the Republicans are totally against the monthly child tax credit payments that's not true the Republicans have counter-offered the Republicans have their own child tax credit bill and believe it or not the Republicans are offering more money than the Democrats but I'm going to be very straightforward with you the Democrats absolutely hate the Republican bill they just they they don't like it the Republicans are saying that their plan strengthens families and empowers mothers and it's all the Rave with Pro family groups and pro-life groups and I'm going to give you the details in a minute okay but right now I'm gonna break this down for you but before we go any further I want to say this I want to say this to clarify to simplify everything I'm just going to say child so when I say child I'm talking about your qualifying child or your qualifying dependence I'm going off the IRS definition because you have to remember that this is tax legislation so I'm telling you this because I don't want you to get confused okay so here's the situation the monthly child tax credit payments that expired at the end of 2021. in 2022 it went back to the old rules a two thousand dollar tax credit per child so here's what the Democrats want this is their proposal and you can let me know what you think the Democrats bill is called the American Family Act so it's already been co-sponsored by more than 200 members of Congress and this is what it'll change if you have children ages 6 to 17 you will receive 250 a month per child so if you so for example if you have two children let's just say ages six and eight then you would get 500 a month and this would be a permanent thing until your child turns 18. so 250 a month is three thousand dollars a year which is more than the current two thousand if you have children under the age of six then you would receive 300 a month per child so if you have two kids for example under the age of six then you would get six hundred dollars a month and three hundred dollars a month that's three thousand six hundred dollars a year more than the currents two thousands but I want to point this out to You Not only would it be more money per child there would be other differences as well so here are the details the current rule is that you get a child tax credit of two thousand dollars per child that's 16 years old or under the American Family act extends the qualifying age to 17 years old so more children would qualify and then you'd also have the option to receive the payments as monthly payments or you can opt to have you could have to get the full tax credit when you file your tax return you would qualify for the full benefits if you're married and your combined income is under 150 000 and 112 500 if you're not married if you exceed those income levels then you don't get the full benefit it gets phased out now I want to tell you about the Republican plan it's called the providing for Life act so it's been introduced by congresswoman Ashley Hinson and Senator Marco Rubio so I want to give you the details of this plan and let me know what you think for every child under the age of six you would receive four thousand five hundred dollars so that's more than the Democrats 3600. for children ages 6 to 17 you would receive three thousand five hundred dollars annually so that is one hundred dollars less than what the Democrats are offering now let me give you more details from this Republican bill so the Republican plan would give the child tax credit to an unborn child so this is being seen as a comprehensive pro-life agenda the language of the bill states that a qualifying child includes an unborn child that will qualify retroactively upon the child's birth so Senator Marco Rubio said we need policies like this to show America that conservatives are pro-life across the board the bill would also provide Federal funding to faith-based organizations to assist low-income vulnerable mothers the bill would also expand protections for anti-abortion groups so this Republican bill is receiving High Praise from pro-family and pro-life groups so let me know what you think in the comments down below so here's what's going to happen the Senate comes back from their vacation on September 5th the House of Representatives comes back from their vacation on September 12th the politicians will have until September 30th that will be their deadline to figure this out and work out a deal Republicans want corporate tax breaks the Democrats want their monthly child tax credit payments and if the Republicans are willing to trade they're most likely going to push their bill they're going to most likely push their child tax credit payments over the Democrats now if you're thinking that the Republicans and Democrats it seems like they both want to give money to parents you know why can't they work out a deal why can't they just get on with it and do it it's because the Republicans and Democrats they're going to have difficulty Bridging the differences Democrats are not going to support legislation that extends protections for anti-abortion groups and the Republicans are saying that if they want to go with the Democrats plan that the Democrats need to show a fully funded Bill the Republicans are basically saying that they want the Democrats to slash funding in other areas to provide funding for this one so the Republicans are saying that they're going to fund their bill by removing the state and local tax deductions so this is known as the salt deduction so this deduction it's been Limited in current years but the Republicans want it gone for good so the reason is that the salt deduction it mostly helps people living in Democratic states because the Democratic states generally have higher state income taxes I mean take a look at California take a look at New York so when taxpayers in those Democratic states pay a lot of state and local taxes they receive a tax deduction on their federal income taxes and they pay less taxes to the IRS so this tax deduction it mostly helps the Democrats and the Republicans want to get rid of it and I want to tell you this don't underestimate how important these corporate tax breaks really are there's a lot of pressure there's a lot of pressure on the republicans in Congress to pass these corporate tax breaks because they're important to the donors of the Republican Party the Congressional budget office estimates that the three bigger corporate tax breaks so I'm not even talking about all of them that are being requested but the top three that the Republicans are asking for will cost 68 billion dollars a year the Republicans wants one to allow corporations to write off more of their interest expense because there are limitations to favorable bonus depreciation rules and three research and experimentation tax credits so all three combines 68 billion dollars a year but the monthly child tax credit payments from the Democrats plan is expected to cost 105 billion dollars a year so that's also an estimate coming from the CBO the Congressional budget office but the Democrats are saying that it's going to be money well spent they're 105 billion a year The Joint economic committee says the monthly child tax credit payments in 2021 lifted 5.3 million Americans out of poverty including 2.9 Million children but the Republicans say that their plan is better so do you see the back and forth here this is just the way it is this is just the way it is in DC and I wouldn't expect I wouldn't be surprised to see a lot of gridlock happen in September so I'm not gonna make I'm not going to make a prediction on how this is gonna end feel free to do so I don't know how the comments are going to look but I look forward to reading them I'm going to give you an update on the situation in September that's when Congress gets back from vacation Please Subscribe I thank you for the support and I wish a very nice day take care

Channel: ClearValue Tax

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Keywords: child tax credit, child tax credit payments, monthly child tax credit, monthly child tax credit payments, stimulus, stimulus check, stimulus checks, stimulus child tax credit, stimulus package, stimulus payments, stimulus check update, economy, economic news, US economy, stock market, stocks, us economy, personal finance, financial news, child tax credits, child tax credit 2023, inflation, inflation 2023, recession, recession 2023, stagflation, stagflation 2023, meet kevin

Id: vGiXei0FyS8

Length: 9min 11sec (551 seconds)

Published: Fri Aug 11 2023